Airlines

Category Archives for Airlines.

Why I Believe Air Canada Will Still Buy Aeroplan

by Gary Leff

stock market
Aug 03 2018

When Air Canada announced that it would drop Aeroplan and start a new frequent flyer program, Aimia (the company that owns the Aeroplan) saw its stock fall from about CAD$8.80 down to as low as about CAD$1.50 per share.

Activist shareholders replaced Aimia’s leadership, and they quickly announced aggressive plans to offer a competitive program that might continue to be attractive to customers. That gave the stock a bit of a bounce. But when Air Canada made their offer to buy the Aeroplan program from Aimia, Aimia’s stock shot up.

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Aeroplan Announces They’ll Partner With Porter Airlines

by Gary Leff

porter airlines plane
Aug 03 2018

This gives Aeroplan an airline partner, but Porter Airlines is no Air Canada. They operate of a fleet of 29 Bombardier Dash 8 Q400 turboprops with 74 seats. They fly to 16 destinations in Canada and 7 in the United States (although half a dozen of their routes are seasonal). And it doesn’t appear that they’d even be the exclusive frequent flyer program for Porter, which presumably will continue to operate the VIPorter program.

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Air Canada’s Offer to Buy Aeroplan Was Rejected (But a Deal May Still Happen)

by Gary Leff

air canada plane tarmac
Aug 03 2018

Air Canada wants to buy back the Aeroplan program, which is spun off into a separate company. The program is owned by Aimia, which also owns 49% of Aeromexico’s frequent flyer program. Either Aimia sells Aeroplan back, or Air Canada starts its own new program in July 2020.

Air Canada and its bank partners in the deal had offered $250 million plus assumption of the program’s liabilities. They had raised their offer to $325 million. Aimia was willing to sell, but they wanted $450 million.

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Good American Airlines Business Class Award Space to Europe

by Gary Leff

first class cabin
Aug 02 2018

American AAdvantage miles are tough to use for actually flying American. That’s changed somewhat over the past 9 months as American has opened up greater connecting availability in coach and also loosened its routing rules for domestic awards. But premium cabin international travel on American’s own flights remains challenging.

That’s why I highlight when even modest international business class award space opens up. When it does, it’s time to jump.

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Aeroplan Now in Talks With oneworld

by Gary Leff

lounge desk
Aug 02 2018

Air Canada spun off its frequent flyer program Aeroplan into a separate company. Aimia owns Aeroplan along with other loyalty programs including a 49% stake in Aeromexico’s Club Premier.

Last year Air Canada announced they weren’t going to renew their exclusive partnership with Aeroplan after their 15 year deal expires at the end of June 2020. Now Aeroplan is confirming partnership discussions with oneworld .

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Qantas First Class Award Space Available

by Gary Leff

sydney opera house
Aug 02 2018

Australia is one of the toughest frequent flyer awards, at least in premium cabins. In order to fly business or first class between the US and Australia you often have to connect in Asia.

However Qantas premium cabin awards are easier to book than you think, because American AAdvantage hides the seats from their members. Here’s when they’re available and how to book them.

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New Worst Airline in the Country? Meet Via Air

by Gary Leff

via air plane
Jul 31 2018

Via Air moved from public charter operations to running commercial Essential Air Service subsidized flights out of Beckley and Parkersburg, West Virginia to Charlotte in 2014. They also ran unsubsidized flights from Beckley and Parkersburg to St. Augustine, Florida.

The Florida-based carrier has since expanded operations and has a fleet of 6 fifty seat Embraer ERJ-145s and 4 thirty seat EMB-120 Brasilia turboprops.

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American Airlines: Department of Transportation is Rethinking Approach to Joint Ventures

by Gary Leff

qantasplane
Jul 31 2018

oint ventures seek anti-trust immunity to allow airlines to work together on schedules and pricing, and to split up the revenue they earn together on designated routes.

Proponents argue that they’re a second-best workaround to limits on foreign ownership of airlines. However joint ventures remove competitors from the field. Foreign ownership could increase competition, bringing more capital, while these joint ventures reduce competitors.

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With GOP Primaries Over and Fewer People Watching, Governor Suspends Georgia Jet Fuel Tax

by Gary Leff

delta badge
Jul 31 2018

Delta and United rescinded their group discount offer for NRA members. United is based in Chicago and everyone expects gun violence there. Delta took a lot of heat for their position and tried to walk it back claiming they weren’t really taking a position on the issue.

The state legislature dropped an attempt to repeat the jet fuel tax that would have been a big subsidy for Delta. This was signaling to GOP primary voters.

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