Monthly Archives

Monthly Archives for June 2015.

Why Delta and Lufthansa Want to ‘Control the Information’ and What They’re Doing About It

Airlines want lower costs to distribute their tickets and greater flexibility in how their fares are displayed — especially the ability to upsell unbundled products through whatever channels are distributing their fares.

Delta is limiting the sites that can display its fares. Lufthansa has declared that all ‘indirect channels’ (like travel agents, online booking websites) have to pass on a 16 euro fee for their tickets.

This is a war between airlines and their distribution partners, and they’ll bloody each other in the process. While not convenient for consumers, you won’t really feel the losses here.

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Another Big US Airline Subsidy? $30 Billion in Net Operating Loss Carry Forwards Mean Airlines Pay Little Tax

Jun 08 2015

US airlines have about $30 billion in net operating loss carry forwards worth over $10 billion in tax savings. At a time of record profits, the US tax code won’t require them to pay much if any federal taxes. Is that a subsidy, or just plain fair? And should they be screaming about the subsidies they argue airlines in other countries receive?

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Could Unbundling Come to Business Class? Cheaper Tickets With No Miles or Lounge Access

Jun 08 2015

“Unbundling” which most passengers equate to checked bag fees but can include fees even for printing boarding passes could be coming to business class. Not only does British Airways want to exclude elite benefits from their cheapest economy fares, but Malaysia Airlines is looking at offering business class fares that exclude lounge access and don’t earn miles. Think elite members would be exempt? Think again.

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