Category Archives for Airlines.
The father of the White House Press Secretary flew American Airlines last night though, on American’s Los Angeles to Nashville redeye. On arrival though passengers weren’t allowed to enter the terminal.
As a regular Delta flyer Huckabee didn’t realize quarantine has been standard procedure for American flights whenever someone in coach bought a barbecue sandwich.
While both Etihad and Jet Airways would retain stakes in the program after a deal with Blackstone it’s not clear the relative shares each party would give up. For Etihad even a partial sale would them out of their worldwide expansion, which they’ve retrenched from after losing their shirts in Alitalia and air berlin. For Jet Airways it would provide them desperately-needed cash.
Reportedly the deal would value the program at $429 – $569 billion, which is 43% – 90% higher than in 2013. At the same time though membership in the program has grown 220% during that period so its value would be lower on a per-member basis.
Last night American Airlines started showing some award space online for Cathay Pacific, Malaysia Airlines, Qatar, and SriLankan. That’s been pulled and is no longer available.
At a meeting between American Airlines employees and airline President Robert Isom last week, a sim instructor asked whether – with higher fuel prices – there’s an ‘industry initiative to increase fares’ to compensate. Isom explains that American is lagging behind on premium revenue.
However he thinks that premium economy will drive higher performance, and that basic economy and segmentation will “offer our customers what they want to buy, trying to encourage that move up the ladder” and that this will fix things.
American appears to have at least partially added the ability to book awards online with four more partners: Cathay Pacific, Qatar, SriLankan, and Malaysia Airlines.
American Airlines is a big operator of Boeing 737s, a workhorse of the domestic fleet. But they’re also a big operator of Airbus narrowbodies, including the larger A321 version. There are 121 Legacy US Airways A321s, and there are 98 legacy American Airlines A321s.
The airline also has 100 A321 ‘neo’ or ‘new engine option’ planes on order. And at an employee forum last week American’s management shared their plans for these A321neos, as well as plans to update the interiors of existing A321 aircraft in the fleet.
In July American Airlines came in 15th in on-time performance for North American. They weren’t just behind Delta, Hawaiian and Alaska but also United and Southwest and even Spirit. Despite a company-wide push to depart exactly on-time over everything else, they don’t seem to be arriving on-time.
This has been an ongoing issue.
This is all good news for corporate customers, especially big customers of United. Outside of change fee and reaccommodation waivers, the benefits largely come at the expense of flyers who are not corporate customers. Luckily the extra juice corporate customers are getting here is very much at the margin, a Platinum member’s upgrade will still trump a Gold member for instance.
More seats that require a fee isn’t surprising, but it does make buying up from United’s uncompetitive basic economy that much less appealing. Non-corporate leisure customers should increasingly consider American, Delta, or Southwest.
Frequent flyer programs create tremendous value for airlines. They’re highly profitable, and have been for years. When United filed for bankruptcy it was said to have to continue flying to support the underlying credit card business. The airline’s first call after seeing the judge each time was to Jamie Dimon.
The issuer of the United co-brand credit card provided debtor-in-possession financing to United, and co-led bankruptcy exit financing. As with other airlines, United received hundreds of millions of dollars in loans backed by future mileage sales to provide liquidity during the financial crisis.
This story is among the most egregious I’ve heard and as it proceeds it just gets worse and worse.
Debbie Cardarelli is suing American Airlines for more than $1 million over the experience her now deceased husband had last year as the two flew home from Miami to Rochester, New York via Philadelphia in March 2017. As they boarded their connecting segment to Rochester they were told the aircraft, an Embraer ERJ-145, wouldn’t have room onboard for their carry on and they’d have to gate check it.
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 »
