Taking money from poor people in Africa to give to airlines is bat crazy. GDP per capita in Sub-Saharan Africa (2018) was US$1586. In some countries it’s much lower. 18 countries in Africa are already at their capacity for debt. Safe drinking water strikes me as a higher priority than airline subsidies, and in the current pandemic I’d focus more on lack of testing and lack of ventilators and personal protective equipment than giving it to failed airline executives.
The Wall Street Journal had reported that both Delta and United were in talks to do this again with their credit card partners, but Ed Bastian appears to deny this is the case. There was some reference during the airline’s earnings call that the government could take part of SkyMiles as collateral for a subsidized CARES Act loan although nothing was definitive.
Rolfe Shellenberger, who with a couple of other executives under American’s Senior Vice President of Sales and Marketing Tom Plaskett (once considered a possible successor to Bob Crandall) worked with consultant Hal Brierley to launch American AAdvantage as the first mileage-based frequent flyer program in 1981.
Many forget that Shellenberger’s AAdvantage was introduced as a promotion, and wasn’t made indefinite until April 1983 two years into its life. It wasn’t obvious at the start how big this would become. He wasn’t just known for frequent flyer programs, but also took credit for putting pianos on 747s.
There seems to be a new reason that American is shutting down accounts, that I had not seen before: fraudulently submitting rental car receipts for credit.
There’s one wild card that could throw a monkey wrench in the story about cheap flights as a result of limits on travel, concern about travel, and economic recession all combining to depress demand – and that’s government social distancing requirements that could be in effect in the future.
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.
Avatar Airlines applied for $15 million in CARES Act funding seeking a portion of the federal airline bailout – even though by their own admission they “have no flights, no overhead, administrative expense, or fixed costs at the present time.”
In December New York State law began allowing undocumented immigrants to get drivers licenses and stopped sharing applicant information with immigration enforcement agencies.
In Early February the Trump Administration announced that because of this law, New York residents would no longer be allowed to enroll in or renew Global Entry. They claimed they needed access to New York’s DMV database as part of their identity verification process. Several New Yorkers are suing.
The $100 million sale of the Renaissance Austin hotel< failed to close with the buyer forfeiting $2 million in earnest money. The deal was announced in February and hotels are worth a lot less today than they were two months ago – enough so that it made sense to walk away from a $2 million deposit. Whether the unnamed buyer no longer wanted to do the deal (reasonable) or was unable to get financing (also a challenge now) is unclear.
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.
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 »
