Monthly Archives for May 2020.
Two and a half weeks ago I warned that Avianca seemed likely to file for bankruptcy. Now it has filed in the U.S. Bankruptcy Court for the Southern District of New York.
United Airlines, which knew the situation well, had already written down $700 million worth of debt down to $3 million. The Colombia-based carrier already ceased commercial flying two months ago and furloughed most employees. It is winding down its operation in Peru.
Restaurants in Texas were permitted to re-open under new strict guidelines just over a week ago. Indoor spaces are limited to 25% of their previous capacity. Menus are single use only. Condiments cannot be left on the table, but provided only on request. Flatware cannot be pre-placed on tables either and instead must be given to each guest after being seated.
Still, I haven’t dined in at any restaurants yet. There’s one restaurant, however, with a concept that makes me feel safe.
This is a report out that cruise bookings are up 600% off of an extremely low base, and up 200% year-over-year. The claim is highly dubious if taken to mean that the cruise industry is on a path towards recovery or that people are prepared to cruise in the middle of a global pandemic.
I knew these bonuses sold out in an hour. They would have gone much more quickly had the IT held up and people like me were able to get through and buy. However it’s amazing they had over 2000 people at a time trying to buy miles.
Despite taking CARES Act payroll protection subsidies from the federal government, airlines including Delta, United, and JetBlue have cut worker hours. This means that employees receive less pay, and airlines spend less on payroll, despite requirements not to furlough workers or reduce rates of pay through September 30.
American Airlines CEO Doug Parker said “I was there when we were working on CARES and that wasn’t the intent or meaning of it.” Parker is right, that wasn’t how the CARES Act was supposed to work. The original language – that got changed – has now been leaked.
The executive branch wants to give the CDC a mission: checking temperatures of airline passengers at 20 airports. The CDC, though, declined saying it wasn’t likely to be effective (due to asymptomatic spread) and it may not be legal. They responded to the Department of Homeland Security “Please kindly strike out CDC from this role.”
Here’s a dismissal notice one pilot reported receiving from their airline. Qatar Airways terminated them effective immediately, and is paying seven days of severance in lieu of notice.
If that was the end of the story it would be unfortunate, but part of the grim reality that aviation and the world are facing today. However that wasn’t the end. Qatar sent the pilot a bill for $162,000.
I have a wallet chock full of cards. I have a card for each kind of spending. I want to earn 5 points per dollar on my airfare, 4 points at restaurants and supermarkets, 5 points at office supply stores, etc. I also have a huge stack of annual fees, that only make sense if I’m getting a lot of value out of each card and spending a lot of money in each category I’m maximizing.
For most people the 10 credit cards in my wallet is too many. And that doesn’t count the cards in my desk drawer.
Even as Hawaii prepares a marketing campaign to bring back tourism calling the state ‘the safest place in the world’ for how well it has managed to contain COVID-19, it’s also ramping up restrictions on visitors – some designed to protect the state from coronavirus, others clearly motivated by an antipathy towards outsiders coming from the mainland.
This past week American Airlines CEO Doug Parker hosted a Crew News question and answer session with employees. He’s been doing town hall-style employee chats since he was CEO at America West and this was the first one done virtually. Instead of live questions, he had an executive who framed ‘frequently asked questions’ from pilots, and separately from flight attendants.
In the flight attendant session Parker laid out American’s philosophy on pricing which is that they will match low fares in the market, but they will not lead discounting. And he explained they won’t even always match fares anyway – because the people who have been traveling recently are the ones who need to regardless of the fare.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
