With Virgin Australia In Bankruptcy, What Happens To The Miles?

by Gary Leff

Apr 21 2020

Virgin Australia’s Velocity Frequent Flyer program has suspended redemptions even though it is a separate company and not included in the administrative restructuring. The frequent flyer program had been spun off in 2014, but reacquired.

The program’s 10 million members apparently had been redeeming points for “gift cards, electronic goods, and wine,” according to the airline, while members weren’t redeeming for travel. There was a ‘run on the bank’ as members questioned the viability of the program with the airline in trouble.

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Trailer Released For New Frequent Flyer Documentary

by Gary Leff

up in the air movie still
Apr 20 2020

There’s a great idea to dive into the frequent flyer hobby – from the craziest of schemes, to the oddball personalities, to the ethics – either as a movie or television short season. Many folks have tried it. I’ve sat down with several of them, given thoughts and interviews. It’s never quite come to fruition.

One has made it to the stage of a trailer for their documentary. Lots of familiar faces here.

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Air Canada: All Points Earned Or Transferred In Count Towards Elite Status & Other Bonuses

by Gary Leff

lounge desk
Apr 20 2020

Frequent flyer programs have done an amazing job of turning marketing from an expense into a profit center. But without travel, members are less engaged in the programs. And that means less spend with credit card partners, too.

It takes creative effort to get members continuing to earn in the program when they aren’t likely to redeem right away. But that earning means cash now – and is even more valuable than ever both because of the premium on cash for struggling businesses and because the redemption expenses won’t come until later.

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Norwegian Air Declares Four Subsidiaries Bankrupt

by Gary Leff

plane on runway
Apr 20 2020

Norwegian’s failure was one of 10 things I told you to expect from the coronavirus crisis. They’re now putting four subsidiaries which employ crew into bankruptcy and terminating other staffing agreements. They’re blaming the choice on which companies to put into bankruptcy on lack of subsidies by the governments of Sweden and Denmark.

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Emirates Now A Citibank Transfer Partner, Becomes Transfer Partner Of All Major Bank Currencies

by Gary Leff

shower in plane
Apr 19 2020

Citi has added Emirates Skywards as a points transfer partner for its Citi Premier and Prestige cards. Emirates is now a partner of Citi, Chase, American Express and Capital One – this strikes me as a problem for Barclays which is rolling out an Emirates credit card in the U.S.

Emirates offers great award availability from a variety of U.S. destinations, however fuel surcharges (which depend on the destination flown) are often very expensive and premium cabin awards are priced at 2x coach for business class and 3x coach for first class.

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Italy May Be Off Limits For Travel Until April 2021

by Gary Leff

Apr 19 2020

Plans to re-open the economy in phases are still speculative, and still just plans. They haven’t yet hit the reality of local politics (sustaining closures in the face of a struggling economy) or European politics (and pressure, perhaps coming from Germany and in exchange for economic aid, to follow a more unified approach). Thus pronouncements about re-opening Spain ‘at the end of the year’ and Italy ‘after March 2021’ are at this point merely suggestive of the challenges that international travel will face, rather than something to be taken at face value.

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