Category Archives for Airlines.
American Airlines CEO Doug Parker explained a year and a half ago that executive bonuses were determined by their ability to hit these profit figures, earning partial bonuses at $3 billion, and more at the $5 billion and $7 billion levels.
So what happened to executive bonuses when the airline failed to meet this goal for 2018? No one received bonuses, just as the CEO promised. Executives received bonuses.
In the fall I walked through American Airlines financials to show that the airline is losing money flying but earning an overall profit thanks to selling frequent flyer miles to banks.
That remained the case for the last quarter and full year of 2018.
In the American Airlines internal podcast Kurt Stache, American’s Senior Vice President of Sales, Marketing, and Loyalty talked about the airline’s new Airbus A321neo, on board entertainment, the airline’s new mission, and getting customers to want to recommend the airline.
He’s a legacy American Airlines executive who once ran the AAdvantage program, and AAdvantage reports up to him.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
I told you that ‘simplicity’ was the direction American was headed with their catering, and I’ve also written that the option to pick a good meal seemed too generous. So it shouldn’t surprise that there are significant cutbacks in the special meal program.
The Asian Vegetarian, Hindu, and Muslim meals are all the same thing, they just list the options separately. No more meat, then, with Muslim meals. The diabetic meal won’t get steak anymore, now it’s chicken. And meals will be frozen rather than fresh with a one year shelf life. Yum!
Two months ago I wrote that American would be introducing ‘seat coupons’, so that non-elites and Gold members could earn preferred seat assignments on American Airlines instead of having to pay for these seats.
Seat assignments — even the most undesirable ones, if a non-elite wants them in advance — can come at a premium. So ‘coupons’ to get them without cost or at a discount at some level have value.
At some level if a US airline cannot compete against an Italian one, a ‘government-controlled’ one no less, they probably shouldn’t be in business. And shouldn’t they worry about how about half of their passengers feel when they’re flattering the President as election season heats up?
What they’re so worried about – and running to the President for protection from – is an airline in Italy with 15 planes that’s just suspended winter service from Los Angeles and San Francisco – and that cancelled Chicago service before it even began.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
It’s usually risky to fly one itinerary on separate tickets. That’s because when you’re on one ticket, if you face a flight delay or cancellation the airline responsible for the irregularity has to get you to your final destination. But if you’re on separate tickets they usually don’t have to do anything more than get you as far as the end of the ticket you’re flying on.
Fortunately — in a world where little seems to go the way of the customer — American Airlines has a policy of taking care of customers connecting on separate tickets as long as one flight is with American and the next is with either American itself or a oneworld partner. And I’ve confirmed that this policy is still in force.
Nothing renews an airline like new planes but absent a giant plane order there always seems to be the thought that the airline can be refreshed by painting planes. It’s a years-long process and costly to undertake.
Ultimately though what United is unveiling is just an evolution. So for me at least it doesn’t induce a strong reaction at all, which is good compared to so many other attempts. But that leads me to wonder why bother at all?
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 »
