Category Archives for Airlines.
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.
American Airlines is having trouble getting a mechanics contract done. They blame themselves for giving mechanics a mid-contract pay raise, so there’s not as much money for mechanics to get by agreeing to a contract. Mechanics are unhappy with the potential for the airline to outsource jobs.
But what if you didn’t even need mechanics to repair planes? The FAA hasn’t approved this, but televangelist Kenneth Copeland claims that G-d healed the corrosion on his private jet.
At the outset of an employee forum last week American Airlines President Robert Isom declared, “we’re planning the airline in a world where oil be at $75 a barrel forever.”
Here’s what he says that new reality means for the ariline.
Last week a Chicago-based flight attendant asked American’s President Robert Isom about “the rumor that we’re going to lose all of our Asia flying” from O’Hare. Isom didn’t say no, Chicago won’t lose Asia service. Instead he explained how he sees American’s hubs.
American’s Vice President – Planning Vasu Raja added “the core of Chicago is an extremely profitable hub” because of connecting traffic in the Midwest and flying to partner hubs. “The only hubs that are more profitable than that are indeed Dallas and Charlotte.” However “the drags on Chicago are indeed Chicago to Asia flying.”
According to its President Robert Isom at an employee forum last week “it is still a big issue.” Isom claims to have “made progress.. we’re pleased that there’s a recognition that when it comes to fifth freedom flights.. that that’s a problem.”
Isom concludes, “It’s still a focus area.. we’re pleased with the work we’ve been able to do with the Trump administration and we’re pleased with the results so far.”
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 »
