Airlines

Category Archives for Airlines.

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 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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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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Don’t Panic: Dynamic Pricing Of Aeroplan Partner Awards Is A Bug, Not A Feature

by Gary Leff

air canada plane tarmac
Mar 09 2021

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.

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Pilot Breaks A Flight Attendant’s Arm, Loses Tooth, In Inflight Employee Brawl

by Gary Leff

Mar 09 2021

About 50 minutes prior to touchdown, the pilot got up to use the first class lavatory. A passenger seated up front got up to use the lav. The flight attendant working the forward galley should be blocking the path between the cabin and the cockpit. But that didn’t happen here. And this failing turned into a brawl between the pilot and flight attendant.

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American Airlines Is Refinancing Its Mortgage On The AAdvantage Frequent Flyer Program

by Gary Leff

Mar 08 2021

American Airlines is alone in pledging their frequent flyer program to the federal government as collateral for a subsidized CARES Act loan. Delta and United raised money against their programs on the private market, while Southwest pre-sold points to Chase.

Now American has created a Cayman Islands subsidiary to refinance its AAdvantage mortgage.

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