Monthly Archives

Monthly Archives for August 2020.

American Airlines CEO Doug Parker Spends ‘All Of His Time’ On Government Subsidies

man speaking on microphone
Aug 30 2020

In a meaningful sense U.S. airlines are no longer private businesses, they’re vassals of the state. And that’s not surprising. While the largest carriers have given only a small potential ownership stake to the U.S. government in the form of warrants in exchange for subsidies this year, they’ve been effectively converted from commercial enterprises working to satisfy customers into political creatures working to satisfy “the powers that be,” as American Airlines CEO Doug Parker calls them.

Speaking to a group of American Airlines pilots at the end of last week, a recording of which was reviewed by View From The Wing, Parker said lobbying in DC is “frankly where I’ve been spending all of my time.”

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Why Aren’t Centurion Lounges Re-Opening?

lounge
Aug 30 2020

The argument that food and beverage is key to the Centurion lounge experience, but is hindered by Covid precautions, is a cop out. Far from being another reason to keep lounges closed, fewer passengers makes it easier to deliver individual portions. Airlines and independent lounges are re-opening. American Express needs to speak to a timeline for bringing Centurion lounges back on line.

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New Government Report Shows Marriott, Hilton And Choice Hotels Used As Immigration Detention Centers

Aug 30 2020

Last month Hilton came under fire for housing children in the process of being deported by the United States. The chain told hotels they shouldn’t accept these bookings. Now we learn that children were being held in even more Hilton, Marriott, and Choice hotels than we thought.

At least 660 children have been held in hotels enroute to deportation. Most were unaccompanied by parents. According to the government “it cannot allow children to stay in the U.S. due to the coronavirus pandemic.”

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New $5, 15-Minute Covid Tests Could Open Up Air Travel – But The Government Has Other Priorities

Aug 29 2020

This week we learned that Abbott Laboratories received an FDA Emergency Use Authorization for a faster and cheaper Covid-19 test than anything currently on the market.

Fast and cheap testing is one of the ways to bring travel back to normal. It would allow customers to travel with confidence, knowing that those around them are virus-free. And it would allow destinations to open up, knowing that people shedding the virus weren’t entering.

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Detail On United’s New Program To Save Money Cancelling Lightly Booked Flights At The Last Minute

united plane
Aug 29 2020

United is selling flights at specific times, earning customer business on the basis of that schedule, and then reneging – not because they’re unable to operate the flights, but because they decide it’s cheaper not to deliver what customers purchased.

Selling flights and then cancelling them for reasons entirely within the airline’s control, for their own benefit, while 23% of rebooked customers are impacted by more than four hours is an unfair and deceptive practice. Customers whose travels are adversely affected to a significant degree should file a complaint with the Department of Transportation.

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American Airlines Backs Off Illegal Plan To Stop Serving Joplin, Missouri And Sioux City, Iowa

Aug 29 2020

On August 20th American Airlines announced plans to drop air service to 15 cities unless the government forked over another $6 billion in subsidies. The cities were spread across 14 states (28 Senators!) and many of the airports slated to lose service October 7 are represented by members of the House Transportation Committee.

However the plan was too clever by half. No one at American Airlines realized the problems dropping service to 3 of the cities on the list, and just as I’ve predicted they are now backtracking.

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The Game Theory Of A Weak American Airlines Flight Attendants Union

Aug 29 2020

Furloughs shrink the union budget, but non-paying union members can’t vote. Taking the newest hires out of the equation protects old guard union leadership. The union was already weakened, having squandered its cash, and has been downright docile during the Covid crisis. But the company has lost all of its leverage by furloughing flight attendants, rather than holding out the potential to minimize furloughs in exchange for a concessionary contract.

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Mass Layoffs Of Marriott Ambassadors Agents Who Take Care Of Chain’s Best Customers

picture with stairs around it in a hotel
Aug 28 2020

A significant number of Marriott Ambassador agents have been notified that their positions are being eliminated, generally effective October 1. This isn’t the first round of layoffs for Ambassador agents. The hotel chain shed customer service agents who work with top guests back in March, effectively eliminating the ‘dedicated agent assignment’ for customers who stay 100 nights and spend $20,000 each year with Marriott.

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