American Airlines Rolls Out Offers To Buy Higher Elite Status For Cash

by Gary Leff

Nov 05 2020

Every year, for many years – perhaps two decades – American Airlines offers the opportunity to buy status to members who haven’t quite requalified, and in recent years has offered an opportunity to buy up to the next level as well.

The offer is back this year, at around the same time, but just feels different. Didn’t requalifying for status based on your flying this year? Your status is being extended anyway. So the only relevant question is whether you want to buy up to a higher level.

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Vaccine Tourism Will Be A New Trend In Early 2021

by Gary Leff

Nov 04 2020

Even if there’s an emergency use authorization for a vaccine in the U.S. in December it’s likely late in the second quarter before it’s available for most Americans. Will you wait until June for a vaccine, when you can get one somewhere else in the world if you have the ability to travel and the money to buy one? Would you take a trip to Dubai to get a vaccine six months earlier?

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No, Airline Bailouts And High Debt Don’t Have To Mean Frequent Flyer Devaluations

by Gary Leff

Nov 04 2020

Andrew Kunesh writes at The Points Guy website that a second airline bailout may mean frequent flyer program devaluations, and calls for legislation providing for the bailout to require airlines “not to devalue their loyalty programs until government funds are paid back.”

However there’s no fundamental reason that a bailout means loyalty program devaluation, any such restrictions are likely to be toothless in any case, and aren’t going to make it to the top of any legislator’s or regulator’s agenda.

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Full Pay To The Last Day: Southwest Union Tells Cabin Crew Not To Worry About Furloughs Notices

by Gary Leff

Nov 04 2020

Publicly the flight attendants union has been saying no to concessions, and also implies to members that the airline won’t go through with furloughs – that WARN Act notices will be nothing to worry about. That’s a dangerous position. It suggests Southwest is bluffing and will pay to remain fully overstaffed, while its competitors have succeeded in downsizing and when the airline has publicly told investors they’re unable to do that.

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Buy oneworld Emerald Status And 75,000 Miles For $2300

by Gary Leff

lounge
Nov 03 2020

American’s oneworld partner Finnair is offering up to a 100% bonus on purchased points and will give you elite qualifying miles equal to 25% of the miles you buy, too. What’s more, the Finnair Plus program lets you convert miles into elite qualifying miles as well. As a result you can buy that mid-tier elite status easily and access American’s lounges, or even buy top tier oneworld emerald status.

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United Airlines Is Asking California Voters To Support Affirmative Action

by Gary Leff

united plane
Nov 03 2020

In 1996 California voters adopted proposition 209 which provided that “the State shall not discriminate against, or grant preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting.” It banned affirmative action.

Today California voters consider proposition 16, to repeal that affirmative action ban. United Airlines weighed in, and they want to see affirmative action in California.

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Which Airlines Are At Greatest Risk Of Shutting Down Due To Covid?

by Gary Leff

depressed businessman leaning his head below a bad stock market chart
Nov 03 2020

I’ve written that in the U.S. the major airlines at the most risk are American Airlines (by a wide margin) followed by United. American is likely to end the pandemic with over $45 billion in debt to service, far more than their next-closest competitor. And they underperformed the industry financially to begin with. Unsecured American Airlines debt is a risky bet over the coming years.

Looking at “liquidity, solvency, profitability, leverage and recent financial performance” Bloomberg ranked the 8 biggest airline insolvency risks. After significant subsidies, no U.S. or European airline makes the list.

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