A new US class action lawsuit is challenging Korean Air’s rules for mileage upgrades. A U.S. resident in California brought a class legal action against Korean Air, arguing the airline company charged him an extra $200 for his ticket when he asked the company to upgrade his economy-class ticket to a business-class one using his accumulated flying mileage. … The company explained the plaintiff had to purchase a different ticket because upgrading one’s seat using their flyers’ mileage can only be done when the ticket is valid for more than six months. The one the plaintiff had originally purchased had the validity period of only three months. The plaintiff asked the court to order a suspension of their business practice arguing the practice was unfair because it was not stated in their service contract while…
About Gary Leff
Protectionism in Malawi
The government of Malawi has ordered that official travel be on Air Malawi when the national airline flies the route. The argument in favor: “It is a good thing, but it all depends on the government budget in terms of how often the said public officials will be allowed to travel,” said Perekamoyo. He described the move as a “small bonus” to the airline, saying travel by public officials just contributes about a third to the airlines total revenue. The argument against: One senior government official at the Ministry of Finance who did not want to be named said that directive was not in line with the doctrine of liberalisation, saying Air Malawi must not be protected, but should be left alone to compete. But an official at Air Malawi did not want to be…
That’s the way to do it
Singapore Air is offering more reward choices and lowering some mileage requirements. Singapore is introducing one-way awards and unrestricted awards (for more miles) for premium class travel. The second is a good, new option — as long as they don’t add restrictions to the old point level awards that make them unuseable, foring flyers to spend more points for the same thing. But I’ll hold my cynical self and celebrate the added benefit.
Airline elite status matching
Interested in switching loyalty to another airline? But you would hate to give up the elite status on your primary carrier to do it?Many airlines will see that you’re an elite with one of their competitors and offer to start you out at a comparable level in their program in order to induce your business. Over at Flyertalk.com I posted a pretty comprehensive discussion of which airlines will match existing elite status, and how to go about requesting them to do so.
Sometimes even the best of us need help or advice
David Rowell has the first of a three part series on choosing a travel agent.
Welcome to Advanced Account Management 101
Smarterliving.com has a primer on laundering frequent flyer miles from program to program, outlining transfers via Amtrak, Hilton, Diners Club, and Points.com.It errs in saying that only American and Midwest remain in the Hilton HHonors Reward Exchange among US carriers (Hawaiian participates as well) and it doesn’t draw some of the neat conclusions for you, such as that you can use the Amtrak program as a tool to earn United miles no matter who you fly amongst US carriers (other than America West and Southwest). But it’s a pretty good introduction.
American Airlines videogame
American Airlines is offering a chance to win a seven day vacation for playing an online game: Chair-iots of Fire.A company has saved so much money by booking travel on the American Airlines website (choke) that it has lifted the ban on chair racing. You race through the office and pick up boarding passes, American Airlines emails, frequent flyer miles, and food.Cute for certain but probably more trouble than it’s worth for the prize.
Mile-a-Rama
Northwest is giving up to 100,000 bonus miles for a combination of activities in its Mile-a-rama promotion. Buy tickets online, checkin online, travel, credit rental car and hotel stays, etc. and earn points.Car rentals credited to Northwest earn additional bonus miles via the Mileage Accelerator.
Coverage of Elite Status Changes Gets Muddled
Kudos to news media that are trying to explain changes in airline elite qualification. But very few stories are able to cut through the rhetoric and explain the important changes clearly. A story in this morning’s USA Today is a perfect example. The article leads with Continental’s changes in elite qualification, counting only 50% of mileage flown at lower fare classes towards elite qualification (although leaving out Continental’s escape hatch for next year only – fares booked on the Continental website will still accrue 100% of mileage towards elite qualification). Then it notes changes at Delta and Alaska, and historical changes at Northwest and American. So far so good. But the article only alludes to problems of using fare class (as opposed to revenue) as a proxy for customer value: Continental’s new elite qualification rules…
If we didn’t have such high costs, we’d make more money
Gordon Bethune makes the stupid statement of the day. Bethune allowed that traditional carriers’ costs are higher, but said this was because staff are more senior than at low-cost carriers that have started up in the past few years. Continental recently calculated its 2002 financial statements assuming it had the same revenue and network, but the labor cost structure, of JetBlue. Instead of a $350 million loss, Bethune explained, Continental would have had a $450 million profit. The difference is “directly attributable to wage rates and seniority levels,” he said. Yup, it’s just the unfair advantage of a lower cost structure that makes JetBlue better off. Don’t blame us!This from the head of an airline that has had the cost-shaving advantages of two bankruptcies. Wonder who Gordo thinks negotiated those higher costs?
