Monthly Archives

Monthly Archives for March 2021.

Air Canada’s New “Status Pass” Is A Benefit All Airlines Should Emulate

by Gary Leff

Mar 11 2021

Loyalty isn’t primarily about points or benefits. It isn’t transactional. It’s about building a relationship based on taking care of customers and building trust. That’s difficult to do in a mass way, even with elite benefits because that group can number in the tens of thousands (for top elites) to the seven figures (for lowest level).

A program systematizes how guests are cared through. Benefits are part of doing that. In formulating a set of benefits it’s most important to understand what matters most to the customers that matter most. That’s often how a travel brand cares for the people the member cares most about.

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American Airlines On Criticizing Airline Subsidies While Taking Record Government Aid

by Gary Leff

Mar 11 2021

American Airlines CEO catapulted from securing Air Transportation Stabilization Board subsidies for America West, to taking over government-subsidized US Airways, to getting the federal Pension Benefit Guaranty Corporation on the side of acquiring American Airlines from within bankruptcy. Then he spent all his time in D.C. realizing there’s more revenue in taking money away from taxpayers than selling to customers. U.S. airlines will receive over $79 billion in federal support in a year.

As I put it about anti-Gulf carrier coalition member Delta, the U.S. airlines have always believed in subsidies for me, but not for thee.

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American Airlines Cabin Crew Have New Incentive To Sign Passengers Up For Credit Cards

by Gary Leff

Mar 11 2021

With people thinking more about getting out more in the not too distant future, on board card promotion is back in a big way in fact for March and April they’re incentivizing this with additional cash and donations.

What’s perhaps most interesting though is the statistic they’re promoting, that only 14% of passengers on a given flight have an AAdvantage credit card.

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American Airlines Breaks All Records, Plans to Mortgage AAdvantage For $10 Billion

by Gary Leff

british tail plane
Mar 10 2021

American Airlines just boosted the amount they are borrowing against the AAdvantage program to a record-breaking $10 billion.

The blended average rate on this debt is 5.575%, paid by three subsidiaries that now make up AAdvantage based in the Cayman Islands. When the pandemic is over I’m encouraging American to throw a Members Only Party on board several flights to Grand Cayman where we can all visit our miles.

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Airlines Pick Your Pockets Again With Third Bailout Of The Pandemic

by Gary Leff

Mar 10 2021

Congress passed the American Rescue Plan which includes $14 billion for commercial airlines, and requires them not to furlough workers through September 30.

Previous bailouts included $50 billion in the CARES Act ($25 billion in payroll support and $25 billion in subsidized loans) plus suspension of the domestic air travel excise tax for 2020 and then an additional $15 billion in December 2020. This brings total commercial airline subsidies to $79 billion, separate from funds for airports, airline contractors, and cargo carriers.

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10,000 Free Hilton Points For Taking One Survey

by Gary Leff

Mar 10 2021

Taking surveys for miles was super lucrative twenty years ago. Now I very often don’t bother. The rewards tend to be much lower, and I’ve wasted too much time on screening questions to even qualify for a survey that don’t pay out at all, only to learn after that effort that I’m not eligible.

Here’s an exception to the rule. There’s a new offer to earn 10,000 Hilton points as a bonus for your first Guest Opinion Rewards survey, increased from just 1250 bonus points.

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14 Things American Airlines Told The SEC About The AAdvantage Frequent Flyer Program

by Gary Leff

british tail plane
Mar 10 2021

American Airlines is refinancing the mortgage it took on its frequent flyer program with the U.S. Treasury by raising $7.5 billion against AAdvantage in private financial markets.

As part of these efforts they had to make a ton of information public about AAdvantage in an SEC 8-K filing. Here are 14 interesting things that they had to share with investors and the SEC.

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