Category Archives for Airlines.
In an interview Department of Transportation Secretary Elaine Chao says that airlines have to refund customers when they cancel flights. That’s clear, published DOT policy.
Secretary Chao also said that the government should not ground the airlines, and that flying decisions should be left up to them – and that the nation needs the airlines flying, even now.
American’s May schedule will have only 10% of its usual international flying, and about 20% of its domestic flying.
They’ve just announced what they’re planning to fly internationally for summer. It’s much more ambitious.
At an internal meeting on Friday, American Airlines President Robert Isom told employees “every lost bag is nearly $60.” That amount was new to me.
In January alone American mishandled 74,975 bags, the most in the industry by far, and not any improvement over the prior year. At $60 per bag it cost American $4.5 million, and annualized at the same rate $54 million. Extrapolating similar costs for the industry would mean US carriers losing over $160 million a year to mishandled bags.
American Airlines and their credit card partner Barclays have updated the offer for the credit card they market inflight. And with this change, American Airlines is again encouraging flight attendants to hand out paper applications on board to passengers, even while they’re reducing the rest of their service levels to promote health and safety of cabin crew and customers alike.
American Airlines sent out a message to flight attendants who have been through training to qualify to pitch the card inflight.
Even though U.S. airlines are getting access to a $58 billion federal bailout, and even though taking government money places limits on furloughing employees, there are going to be employees who do lose their jobs, lose their hours, and also just have time on their hands.
American Airlines has set up relationships to facilitate hiring of their employees by 6 large companies who are looking for workers.
Loyalty programs need to stay relevant. When people aren’t traveling, they aren’t engaging with the brand. Expect co-brand credit card applications to fall. There will be fewer new customers, and perhaps even more people than usual will cancel cards when annual fees come do. Both the number of active members of a program will drop and the size of the credit card portfolio will decline as well. The volume of card spend is likely to fall in recession.
Yet loyalty programs are key to a travel brand’s resurgence. What should they be doing?
Democratic Senator Elizabeth Warren and several Senate colleagues including Bernie Sanders, Kamala Harris, and 6 others, announced a letter to the CEOs of major U.S. airlines demanding “every company to issue full cash refunds to all customers who cancel their flights during the COVID-19 crisis.”
They don’t just want refunds for passengers whose flights are cancelled, they want refunds for everyone. But they’re a little late, grandstanding after they’ve given up any leverage by voting for the $58 billion airline bailout.
The FAA took a new step to change the rules around supersonic travel. That should remove a huge hurdle to flying to London in 3 hours and to Tokyo in 5 hours.
American Airlines thinks their May schedule – targeted at 20% of its normal domestic flying and 10% of international – will be closer to demand. That’s what airline President Robert Isom told flight attendants in an online question and answer session on Friday.
With less flying they’re looking at retiring not just Embraer E-190s, Boeing 757s and 767s, but also Airbus A330-300s. Currently 135 of the airline’s 150 widebody jets are parked. Yet they’re still planning to take delivery of new 737 MAX and 787 aircraft this year.
The $58 billion airline smash and grab bailout comes with several restrictions, including maintaining service to cities that already have flights and no employee furloughs through September 30.
In an employee ‘crew news’ session on Friday, airline President Robert Isom told flight attendants that once government restrictions on furloughs lift after September there are a number of things that will help to shrink employee numbers before getting to furloughs. Pilots, though, he was willing to tell that furloughs aren’t in the card.
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 »
