Monthly Archives

Monthly Archives for January 2021.

New Federal Mask Rule Issued Late Friday Night Means Less Mask Wearing On Planes, Not More

Jan 30 2021

I warned you this would happen, but you supported a federal mask mandate anyway. Airlines already required mask-wearing on planes. I told you that if the federal government got involved this would mean fewer options for travels, and less mask-wearing overall. Guess which one of us was right?

Late Friday night the CDC issued its rule for mask-wearing on public transportation and airlines following the President’s executive order asking them to do so….

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American Airlines Tells Flight Attendants They’ll Be Laid Off Again, Third Government Bailout Requested

Jan 29 2021

In December Congress passed a $15 billion airline payroll bailout, requiring airlines to bring furloughed employees back to work and pay everyone December 1 through March 31, 2021. Per furloughed worker this was the most expensive jobs program in history (at over $1.1 million annualized per job) and American says it’s only spending 10% of the $3 billion it received on furloughed workers.

American’s flight attendants union says it was told to prepare for a new round of WARN Act notices, so we may be starting layoffs all over again – and they along with another union are asking the government for a third airline bailout. Maybe this time most of the money won’t go to shareholders and creditors instead of workers.

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Three Points From This Morning’s American Airlines Earnings Call

Jan 28 2021

American Airlines seems to be gearing up for another run at is single most profitable investment: lobbying in Washington DC. They haven’t been formally engaged by the government over domestic Covid testing requirements, suggesting such a plan may be farther off or less real than some have speculated. And they continue to bring on a lot of new aircraft, seeing that as effectively costless because of cheap financing.

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Travel Agent Accused Of Improperly Earning 42 Million SkyBonus Points Resolves Case

Jan 28 2021

I’ve served as an expert witness in a federal trial about SkyBonus points in the past (and in other sorts of cases as well). I don’t like to see airlines turning commercial disputes over to the government to handle through criminal law.

In this case it seemed clients benefited from the agent’s knowledge, and Delta earned business they wouldn’t otherwise have received. It’s up to Delta whether they want that business of course, but in my view the criminal justice system shouldn’t have become involved. Ultimately prosecutors, looking closely at the facts, agreed that jail time wasn’t an appropriate outcome here either. I was sorry to see Mr. Podolsky go through what he did.

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Alaska Airlines Offers 5000 Bonus Miles To New Members

alaska airlines plane
Jan 28 2021

Airlines are looking for new frequent flyer members and are willing to front bonus miles to get them. Traditional frequent flyers aren’t traveling so much now, and flights have a lower proportion of members than airlines are used to. They need a marketing relationship with the people who are flying, in order to encourage them to fly more and take their credit cards.

With Alaska’s renewed partnership with American Airlines, oneworld membership starting March 31, distance-based earning (not revenue-based!) and pledge not to devalue their award chart without notice they’re likely a strong option for many.

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Is American Airlines The Next GameStop?

depressed businessman leaning his head below a bad stock market chart
Jan 28 2021

On this morning’s American Airlines earnings call, still ongoing, Chairman and CEO Doug Parker opened saying he wasn’t going to comment on recent moves in their stock.

Their stock has been rising with 29% of its float currently shorted and worldwide attention being paid to GameStop.

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