A lot of people are becoming unemployed. To a credit card issuer that means late payments and eventually chargeoffs. The reason banks sometimes reduce credit lights, and tighten lending standards, in a down economy is because there is more repayment risk. This reduces their exposure to bad debt.
I’m still excited for the long term of rewards cards. Thanks to the government’s money printer go brrr right now the cost of credit to banks is unbelievably low.
Two AirAsia pilots climbed out the window of their plane on Friday when they arrived in Delhi. Video shows one of them taking luggage from the other. They had learned a passenger on board might be infected with the novel coronavirus – or at least was sneezing, which isn’t commonly a symptom of COVID-19. No one on board actually had the virus.
They aren’t refusing to give refunds. They just aren’t processing the refunds. As Jerry Seinfeld might have said, “anyone can take the refund request, but it’s the processing that matters.” The airline can slow walk refunds, it believes, with impunity.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Delta CEO Ed Bastian sent an internal memo to employees outlining the seriousness of the situation faced by the airline and the steps they’ve taken to date – and informing non-flying personnel that they’ll have their work days refused 20% – 40% through June, resulting “in a 25 percent savings in payroll over the next 90 days.”
Currently 17,000 employees – including 7000 flight attendants – are taking unpaid leave with benefits. This helps scale down the operation by “over 70 percent; parking more than 600 aircraft.”
American already closed 23 airport lounges including all Flagship lounges and many Admirals Clubs. The airline has been consolidating operations at airports to handle fewer flights, so major hubs still have at least one club.
That will no longer be the case come Thursday.
With load factors in the 20s, it makes sense for passengers to spread out and social distance from each other on the plan. And where possible it makes sense to limit interaction between flight attendants and passengers right now, too.
Changes to American Airlines food and beverage service go into effect this Friday, March 27. They aren’t offering anything for sale in coach, to limit credit card swipes. They won’t service meals in first class except on routes long enough where they figure they have to. And there’s more to it than that.
A group that says it represents 325 employees at American Airlines ‘Skyview’ campus headquarters near the Dallas Fort Worth airport say their airline has been hostile to the idea as well, and are petitioning for jobs that can be done remotely to be permitted to do so, following the advice and request of local governments.
There’s not a lot of use bidding for upgrades today for most folks, though remaining Air Canada flights if you’re traveling may have seats available. In the future this will be a more useful feature.
Selling miles makes a ton of sense and it’s really strange that it wasn’t something Aeroplan had done. It doesn’t make any sense buying at regular price. What Air Canada – and every other airline – should be doing now is offering miles for sale at a deep discount.
Airlines are worried about surviving. They have your cash. It may not be legal to keep it when flights are cancelled, but most customers will take what they are offered (future travel credit) and very few will complain to authorities.
Qatar Airways though has a better approach. They, too, want your cash. They want your future travel purchases when travel is again in the cards. They are honoring refunds but if you’ll take a credit instead they’ll give you a 10% bonus for taking a voucher. That’s creative and honors the customer.
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 »
