Category Archives for Airlines.
After American’s earnings calls the company’s executives meet with employees and take their questions. One of the questions was about the restoration of the most important element of an interline agreement between American and Delta, the ability for each airline to put their passengers into empty seats on the other carrier during irregular operations.
And Doug Parker, American’s CEO, wound up and took a swing at Delta…
After American’s earnings calls the company’s executives meet with employees and take their questions. One of the questions was about the airline’s internal employee survey which revealed significant discontent.
Mergers create a brief window where customers are largely protected from devaluations. Airlines are distracted by merger integration, and don’t want to make customers feel like the merger will be bad for them right away. Once American Airlines moved to a single reservation system in October 2015 we learned about a gutting of AAdvantage the next month both for elite status qualification and benefits and for their redemption chart, and then the rollout of basic economy the next year.
Alaska Airlines right now has by far the most lucrative US airline frequent flyer program. Their award chart is far more attractive than that of their competitors. And they’re a better airline to fly. That may change.
American’s policy is vague, but they do not ask flight attendants to enforce seating with a cabin. If there’s an empty seat with more legroom and you move to it, flight attendants aren’t expected to stop you (let alone charge you, the way United might).
During United’s investor call airline President Scott Kirby reiterated his belief that the largest airline a market will sign up customers for their credit card. If they grow in a market they’ll get more credit card signups and make more money from Chase.
Nowhere in the discussion is there anything at all about the features or benefits of that credit card.
American told flight attendants today that starting in the spring Main Cabin Extra seats with more legroom also get free booze, and overhead bins will have reserved signs.
However that may mean changes soon to limit frequent flyer benefits.
Last night United Airlines President Scott Kirby gave an extended airline economics lecture to investors, explaining how they make more money by building up their hubs. As a result they’re projecting to grow capacity 4% – 6% in 2018 — and continue growing at a similar clip through 2020.
This morning we learned that Delta and American re-started their interline agreement allowing each airline to book seats on the other carrier in the event of irregular operations. It’s limited to this re-accommodation function, but that’s what customers primarily care about and it’s the key item Delta refused to allow in September 2015.
Here’s how that happened.
Two years ago Delta and American eliminated their interline agreement the most basic level of airline cooperation. That’s the agreement necessary to allow flights on the two airlines to exist on the same time, and that’s necessary for one airline to put its distressed passengers on the other carrier — without literally walking over with a credit card to buy a passenger a ticket.
As a general matter I think any airline whose operations are being run by Scott Kirby is going to get worse not better for customers in terms of passenger experience. At the same time there’s no one in the industry I’d rather listen to because he’s earnest and thoughtful and lays out more clearly than anyone else his belief about how his business, and the broader industry, works.
He walked through airline economics, United’s positioning, and marginal analysis with a primary goal of convincing investors it is okay for United to grow.
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 »
