Monthly Archives

Monthly Archives for July 2022.

Instead Of Buying Spirit Airlines, JetBlue Should Exit The Airline Business

Jul 29 2022

If it’s true that JetBlue really faces the choice of grow or die, and this is the only way to grow, then they should be thinking about other ways to deploy their capital. There is nothing written in stone requiring JetBlue to grow in the airline business, or even to maintain their current airline operation. As a company JetBlue should find the most profitable ways to deploy its assets.

JetBlue should consider pivoting away from the airline business if they can’t earn a good rate of return in the airline business. Surely they’d even do better for shareholders by giving the cash used in the Spirit deal to Jack Bogle.

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Report: Elon Musk Building His Own Airport In Austin

Jul 28 2022

Elon Musk plans to build his own airport in the Austin area.

The Boring Company’s headquarters is a mere three miles from Austin Executive Airport – although last year top executives at the Boring Company acquired 73 acres for a warehouse and manufacturing facility in… Northwest Bastrop where the new airport is believed to be planned.

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Air Canada Making Changes To Award Chart September 1, 2022

Jul 28 2022

Air Canada’s new Aeroplan program eliminated fuel surcharges on award travel and introduced a region and distanced-based award chart.

Two years after the new program’s award pricing was announced they’re making several changes, in general reducing the price of partner short-distance awards between different regions of the world while increasing the price of the longest trips in premium cabins. These go into effect September 1.

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Etihad Finally Makes Money – By Not Flying Much

people boarding from tarmac
Jul 28 2022

Etihad Airways has finally become profitable, disclosing $690 million in adjusted earnings and $296 million in operating profit during the first half of 2022 on operating revenue of $2.29 billion. The state-owned carrier did not disclose net profit.

Despite only limited information, it’s still clearly a huge swing for an airline that lost $2 billion in 2016, and $1.5 billion in 2017 pursuing a strategy of buying stakes in nearly every dumpster fire airline they could get their hands on (but still refusing to take a stake in South African Airways, which even for Etihad at the time was a step too far).

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Senate Bill Would Kill Credit Card Rewards By Limiting Merchant Swipe Fees

credit card reader
Jul 28 2022

Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) are expected to introduce a bill to limit credit card interchange fees. If enacted it would be a huge win for merchants, who love taking credit cards – since it means higher sales volumes at a lower cost than accepting cash – but would prefer not to pay for the privileges.

This is usually couched, by lobbyists for big retailers, as benefiting consumers. However prices haven’t fallen anywhere that interchange has been limited, such as in Europe and Australia. But it would effectively end credit card rewards as we know it.

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Southwest Flight Credits No Longer Expire – Ever (But Expiration Says “2040” For Now)

Jul 28 2022

In a move that should make it even easier to buy Southwest Airlines tickets they’ve announced that their credits will never expire. All Southwest Airlines flight credits active starting today – however you’ll see a ‘placeholder’ expiration date of December 31, 2040 with tech updates later in the year eliminating the expiration date and process entirely.

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