Category Archives for Airlines.
At the beginning of February American Airlines sent out 13,000 WARN Act notices letting employees know they might be furloughed at the beginning of April. At the same time American was preparing to provide widespread across-the-board raises to management.
View From The Wing has learned that American provided Level 5 (manager) employees and above. A third taxpayer bailout stopped the furloughs, but taxpayers will now be picking up the tab for raises.
I’ve flown Etihad’s First Apartment almost as much as Cathay Pacific first class over the years. It’s been my favorite use of American AAdvantage miles, and of course Etihad is both an American Express and Citibank transfer partner.
It’s been my go-to for trips to the Maldives (5 of my last 6 were on Etihad). I’ve visited the Mideast many times, alternating between Etihad and Emirates. And I’ve even chosen Middle East stops enroute to Australia because First Apartment redemptions for both long haul segments made the journey so easy. So the end of this spectacular product really hits home.
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.
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.
American Airlines is launching 7 new year-round routes out of Austin and 3 seasonal routes. American is the second largest carrier at the Austin airport, behind Southwest, and historically it has produced some of their highest non-hub yields. With these additions, together with their partners they’ll service 26 destinations from Austin.
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.
Make no mistake: nursing your nuts is no longer an excuse to go maskless on board an aircraft. Put your mask back on between bits or sips if it’s going to be more than a couple of seconds.
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.
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.
When Air Canada relaunched the Aeroplan frequent flyer program – an American Express transfer partner, and soon to have a Chase co-brand credit card, so highly relevant to Americans – they committed to an award chart.
Right now though partner award pricing isn’t sticking to the chart. That means some awards are pricing higher than they should, and others are pricing for fewer miles.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
