Monthly Archives

Monthly Archives for May 2016.

They Say the Era of 100,000 Mile Bonuses is Over, But This is Ridiculous

by Gary Leff

May 27 2016

In the depths of the financial crisis, airlines got liquidity from their co-brand issuing banks by taking loans — in the hundreds of millions of dollars — backed by frequent flyer miles. These amounted to pre-purchase of miles at a deep discount. (Along with the drop in fuel prices, American Airlines only recently finished prepaying the billion dollars they got from Citibank.)

It wasn’t surprising, with low miles costs, to see big signup offers. The first 100,000 mile offer I recall was for the British Airways Visa in 2009. In 2010 we saw a 100,000 mile offer for the basic co-brand AAdvantage card. In 2011 Capital One ‘trumped’ with a 110,000 point offer.

Renegotiated deals have gotten much more expensive for banks. United, Southwest, Delta, and American have all gotten new credit card agreements since that era (and American is negotiating again).

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Woman on Portland Flight Breaks Down, Kicks at Cockpit, Strips Naked

by Gary Leff

May 27 2016

There’s a video getting widespread play, and covered in several media, of a Frontier Airlines flight earlier in the week from Denver to Portland where a passenger melts down prior to takeoff.

The woman is filed screaming about whether they’re going to die? and other ramblings. She is on the ground in the aircraft, and the flight’s crew do the best they can to calm the situation down. She kicks at the cockpit door.

A passenger filed the event, but had the good sense to turn the camera off when she removed her clothes. She reportedly “stripp[ed] down to nothing.”

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American Raising Lounge Prices, While Citibank Practically Gives Away Access Free

by Gary Leff

May 27 2016

As someone who flies American Airlines regularly, I place a high value on lounge access. It’s the people who keep me going especially during irregular operations, going above and beyond to get me where I’m going. As a result I’m very interested in the best way to get American Airlines club access.

For instance, agents have regularly double booked me giving me ‘backup’ flights just in case I misconnect. And I’ve even gotten a proactive call from a lounge about a delay, they had booked me as a backup on a new flight (that had looked sold out to me, and it was the last one of the night). And I’m not a Concierge Key member.

While American raises the price of memberships — effective July 25 — you can actually get much better deals and potentially even make a profit from Citibank credit cards that give you access.

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This Awesome Letter to Customer Service Got American Airlines to Waive a Change Fee

by Gary Leff

May 27 2016

An American Airlines passenger successfully got the airline to waive a change fee when he offered the most human of pleas.

The New Zealand man wrote a letter with his “own hand” and mailed it in, rather than sending an email. He included a doctor’s note explaining he was advised not to fly to visit his niece in the US. And he included photos. I usually tell people that customer service letters should be short and to the point and stick only to relevant facts. This man took the opposite approach.

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THROUGH TOMORROW ONLY: Buy American Airlines Miles at 2 Cents Each and Get Free Magazines

by Gary Leff

May 26 2016

The American AAdvantage online shopping portal has increased its payout on Magazines.com purchases from 25 miles per dollar spent up to 50 miles per dollar spent. This is available through May 27 only.

50 miles per dollar means you’re effectively buying miles at 2 cents apiece — oh, and you get magazine subscriptions too. I value American miles at 1.6 cents apiece so another way of looking at this offer is as an 80% rebate on your magazine purchases in the form of miles.

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American’s President Describes Plan to Segment Customers

by Gary Leff

May 26 2016

American Airlines President Scott Kirby spoke yesterday at the Wolfe Research 9th Annual Global Transportation Conference offering mostly extemporaneous comments in response to investment analyst questions.

The theme that analysts are interested in is the revenue environment that airlines, and especially American, are facing — they’ve seen declines in passenger revenue per available seat mile (PRASM) despite huge declines in fuel costs that have driven profitability. And they want to know when that will turn around, and what American is doing to accelerate that.

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Virgin Atlantic 747 for Sale on eBay – Less Than the Price of a Condo!

by Gary Leff

May 26 2016

A Virgin Atlantic Boeing 747 is available for sale on eBay – no bids yet as of this writing and a starting bid of just $299,000! (The ‘Buy it Now’ price is $900,000.)

Unfortunately (or fortunately!) the plane’s engines have already been removed. Furthermore, the winner has plenty of options about which pieces of the aircraft they way, as “[i]t is also possible to section out the plane out if you only require the fuselage, cockpit or the wings.”

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