Category Archives for Airlines.
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.
The federal Paperwork Reduction Act Notice estimates that your request for billions of dollars should take just two hours to complete. So out of those of you with a good faith belief that you’re an airline contractor under the Act, who’s in? You can just submit a request for funds by e-mail.
Two weeks ago American was asking flight attendants to take leave with no pay. Unsurprisingly they didn’t have enough takers. Pilots, however, could take leave or early retirement at about two-thirds pay.
American is now offering paid early retirement and paid leave across the company, not just for pilots, though of course the leave options aren’t as generous as what pilots receive.
Delta’s current inflight magazine Delta Sky launched in 2009. The magazine was outsourced, published by MSP Communications. It used Delta’s brand, was distributed on Delta aircraft, and Delta’s media team promotes it on the Delta.com website. It’s always been presented as Delta’s.
However writers were not Delta employees. Now they’ve lost their jobs.
The U.S. airlines have long survived on government cash and government protection from competition (whether through foreign ownership, or long term gate leases at government airports). We continue to feed that, and then complain when effectively nationalized airlines don’t deliver the product consumers want. We have only ourselves to blame.
A bankruptcy-first approach would have meant equity and creditors take a haircut before taxpayers. It’s not at all clear a bailout would have been needed even then.
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 »
