Category Archives for Airlines.
I’m here at United Airlines Media Day in Chicago and United Airlines CEO Oscar Munoz said that relying on commitments from Boeing and the FAA that the 737 MAX is “is not going to be enough.”
American Airlines is looking to reduce the cost of delivering checked checked bags – and as a result
they are “in the process of reviewing” their policy of standby free of charge (or for a fee) for elite customers who have checked bags.
With this change – reversing the benefit American trumpeted a decade ago that one way awards would never cost more than half a round trip – there was no press release.
Nonetheless it makes sense in the new world American AAdvantage has put itself in. Paid roundtrips are still sometimes less expensive than two one ways for international travel. It’s not surprising that awards would mirror this.
American Airlines released third quarter earnings and held their earnings call this morning. The carrier reported $557 million in pre-tax income for the quarter.
Their 4.6% pretax margin during the peak summer third quarter is weak. However CEO Doug Parker kept his job through the quarter and that’s the biggest victory for this management team after alienating employees, shareholders, and customers.
The Austin airport teased a new route announcement coming this morning. Routes Online broke the news ahead of their announcement – and it’s one I didn’t expect.
Three years ago I wrote about the problem of gate agents skipping over people for upgrades if they weren’t waiting at the gate. American has just sent out a memo addressing this problem.
According to the President of Star Alliance member airline Thai Airways, the Bangkok-based carrier is on the verge of shutting down if they don’t succeed quickly in a turnaround.
Over the summer the airline’s President introduced a six point plan to crowd source cost cutting ideas; reduce food waste; make a ton of money flying to Sendai, Japan; collaborate with a local gas station cafe chain; and platitudes but it was (shockingly) insufficient.
Unquestionably Singapore Airlines has one of the great international first class products. Admittedly their lounges are somewhat sub par. However their food and beverage program is outstanding. Their main meals are my favorite. And their wine program is fantastically curated. What could be greater luxury – beyond the quality of the champagnes, even – than the ability for passengers to have choice?
The Points Guy ran a love letter to American Airlines a piece laying out the case why it’s good for airlines to get rid of seat back entertainment. Each of their arguments is wrong.
What’s more, streaming content has its problems. Customers may be required to watch through the carrier’s app, but aren’t always clearly told to download it until it’s too late in the air. Airlines haven’t always invested in the same up to date content for streaming as seat back (I’m looking at you, American). And what happens if the U.S. government brings back an electronics ban?
The underlying issue isn’t “will Southwest Airlines try to buy another airline” it’s “how does Southwest Airlines grow without the Boeing 737 MAX in service and continued production?” And if Southwest isn’t in a position to grow its business, it can’t command the historically high price-earnings multiple it’s enjoyed relative to peers in the U.S. airline industry.
Mergers are costly. They rarely generate the promised benefits. They involve combining IT systems, fleets, unionized work forces, and company cultures. They’re fraught with risk. Southwest Airlines needs the MAX to be flying again soon, and likely to act on a plan to diversify its fleet (with the attenuated costs and complexity that brings) — potentially with Embraer E2 jets.
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 »
