Canadian Government Backs Off Supporting Airlines Who Stick It To Customers On Refunds

by Gary Leff

air canada plane tarmac
Apr 23 2020

The U.S. government is clear that airlines must refund passengers whose flights are cancelled. The European Union is clear on this too but airlines have ignored their rules. In fact, European airlines have offered refunds to Americans (or where itineraries touch the U.S.) but not for Europeans (travel that doesn’t touch the U.S.).

Canada had been clear that airlines do not have to refund passengers for cancelled flights. Fortunately they are backtracking from that position.

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A Nonsense Rumor That’s Spreading About United Airlines Bankrupcty

by Gary Leff

united plane
Apr 23 2020

It would be actually be shocking if there haven’t been discussions at each U.S. airline around what a bankruptcy filing might look like. Chapter 11 bankruptcy doesn’t mean ceasing operations. It means freezing obligations and restructuring its debts. And one of the things that would be looked at in any bankruptcy is the airline’s labor contracts.

However the specifics of this rumor are utter nonsense.

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World Airline Lobby Group Wants African Nations To Prioritize Airline Subsidies

by Gary Leff

south african airways
Apr 23 2020

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.

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Delta Denies Discussing Big Sale Of Miles To American Express To Raise Cash

by Gary Leff

woman outside brick building
Apr 23 2020

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.

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One Of The Four Men Who Gave Us The First Frequent Flyer Program Has Passed Away

by Gary Leff

Apr 23 2020

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.

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