Airlines

Category Archives for Airlines.

Taking Too Long to Post Points

by Gary Leff

airplane
Feb 23 2005

Chris Elliott writes in the New York Times that miles are taking longer than ever to post to frequent flyer accounts. That hasn’t been my experience, at least as a general rule. Airlines are getting better at tracking miles for flights. If a frequent flyer number is entered into a reservation in advance, it’s pretty much a certainty that the miles will post. Problems come in when airport agents load the numbers incorrectly, and at times when trying to credit miles to a partner airline’s program. Delta, flagged by the article as second-worst for posting miles, actually credits member accounts before their flights even lands. Delta’s technology in this area is unmatched. The real problem comes in with mileage earning partners. As the article observes, rental car companies are notorious for lags and gaps in…

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Good News at USAirways and Independence Air

by Gary Leff

independence air
Feb 23 2005

USAirways says it needs $250 million to emerge from Chapter 11 bankruptcy, which strikes me as too low. Air Wisconsin has proposed investing $125 million. Air Wisconsin operates primarily as a regional feeder for United. USAirways has been extremely successful reducing its labor costs, but it remains unclear how their business model can return them to profitability. Still, any indication of interest in providing exit financing is a strong positive sign for the airline. Meanwhile, Independence Air says that it has successfully renegotiated its aircraft leases. After almost four months of negotiations, Flyi said it will be allowed to terminate leases on 24 of its regional jets — about one-third of its fleet. Those concessions will help cut its aircraft lease payments by $94.5 million over the next two years. Creditors are also allowing the…

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America West Offers Elite Qualifying Miles for Paying with ‘Bill Me Later’

by Gary Leff

america west plane
Feb 15 2005

Through May 2, America West is offering 1000 bonus miles that count towards elite status when using the ‘bill me later’ feature for the first time for ticket purchases on their website. This is in addition to the one bonus mile per dollar spent when using the feature and the 500 mile online booking bonus. Of course, it’s important to pay prompty as the fees can otherwise be significant.

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Michigan Beer Distributors Lobby Takes Aim at Northwest Airlines

by Gary Leff

nwa-planes
Feb 15 2005

Northwest Airlines, which operates a hub at Detroit, has been cited for bringing in beer from out of state for service on its flights. Michigan law requires that beer must be purchased from state-licensed wholesalers. (Northwest serves out of state beer on planes only, not in its clubs which are supplied by local distributors.) Karen Wilson, chief executive at Central Distributors of Beer in Romulus, said her company notified the Liquor Control Commission after some of her salespeople noticed pallets of beer bearing a Minnesota distributor’s name were delivered to Northwest at Metro Airport. Central Distributors has the exclusive rights to distribute Budweiser and other Anheuser-Busch beers across much of western Wayne County, including Metro Airport. A liquor commission investigator determined that the airline was illegally importing alcohol into Michigan and was breaking the law…

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Warning off Independence Air

by Gary Leff

independence air
Feb 15 2005

Three and a half weeks ago I declared that Independence Air had some financial breathing room and that it was safe to make bookings through February. While they’re running some significant sales to promote their new West Coast service which starts in the next few months, I’m not recommending that folks buy those tickets at this point. I’m taking a wait and see attitude with the carrier, and wouldn’t suggest significant advance bookings at this time. One of Independence Air’s 73 planes was repo’d on Sunday. And one of the conditions of their cash infusion from GE was that they successfully renegotiate their aircraft leases. The repossession is a pretty good indication that they weren’t completely successful, and I worry about the carrier’s ability to meet the covenants of its GE loan. United seems to…

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A story of tenacity, and props to Chris Elliott

by Gary Leff

alitalia
Feb 11 2005

About ten days ago, Travelocity displayed a business class fare from several European cities to Shanghai for US$671 on Alitalia. It was an “I” fare, or so the fare rules suggested — special promotional business class fare. Turns out that for the same exact price there was an “L” fare, the least expensive coach fare available. The price was intended for the coach fare, but it displayed with business class fare rules by mistake. When the fare was purchased, it never said there was a lack of availability in I class or that it was being booked in something other than business. But the tickets were sold in L class, and Alitalia had record of a coach purchase. Travelocity was initially unhelpful. Now, this wasn’t a $0 fare. And it wasn’t a $20 fare, like…

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Independence Air Has Breathing Room, Too

by Gary Leff

independence air
Jan 22 2005

The year started with a bleak outlook for Independence Air, as news broke that they had missed an interest payment on some bonds leading to speculation that they were close to a bankruptcy filing. (If they were going to file for bankruptcy there was no reason to make the payment, and they’d want to conserve cash in any case.) Then they announced plans for job cuts, renegotiated lease payments on aircraft, agreed to return some aircraft, and obtained a loan from GE. All of this bought some breathing space for the carrier, though did little to improve their revenue outlook. But my opinion of the carrier is somewhat boosted by two big bets being made on the carrier by Wall Street heavyweights. Regulatory filings late Friday indicate that two major hedge funds have acquired 12.5%…

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USAirways Gets Some Breathing Room

by Gary Leff

usairways
Jan 22 2005

Members of the machinists union at USAirways approved pay cuts. They were the last union to do so. Coupled with the bankruptcy court’s decision to allow USAirways to draw on the cash behind its federally back load guarantee, the airline has been given a few more months of life. There’s currently no indication that they’ll return to profitability, especially since March is generally their lowpoint in cash for the year. But I don’t see an immediate liquidation threat. In other words, it should be fine to book February flights on the airline.

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Too many miles chasing too few seats (so burn as you earn)

by Gary Leff

airplane
Jan 20 2005

Back in November I explained why mileage award prices will go up, now and in the future, because there are simply too many miles chasing too few seats. This new piece (originally in the Boston Globe and then syndicated) outlines the current state of the phenomenon. Frequent-flier miles are easier to come by as airlines sell more miles to partners like credit card companies and hotels, but they’re harder than ever to redeem. Behind-the-scenes deals with corporate partners are helping cash-strapped airlines rake in millions of dollars at a time when high fuel costs and lower fares are killing their bottom lines. At the same time, these deals give companies that buy miles a sought-after incentive to offer their customers. But frequent-flier club members shouldn’t think all the freebie miles they’ve racked up will add…

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