Why Eliminating Award Charts is the Wrong Way to Do Revenue-Based Redemption

by Gary Leff

flight chart
Apr 19 2019

There’s a real problem that programs are facing, how to deliver award seats in a world where planes are full and airlines aren’t growing faster than the economy? If there aren’t unsold seats on desirable flights the model breaks down. The answer though isn’t to move towards low value redemptions where a mile is worth a penny. That’s giving up.

Fortunately it’s not really an either-or proposition. In fact United’s own experience with revenue-based redemptions shows that this new model can easily co-exist with award charts.

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United Revealed Plans For MileagePlus, Polaris, and Basic Economy in its Earnings Call

by Gary Leff

united-plane
Apr 19 2019

Plenty of reporters will be covering the United Airlines first quarter earnings call, but largely focusing on the airline’s revenue performance and questions about the fleet – especially the 737 MAX.

My interest is largely focused on customer experience – product, fares, and the loyalty program – and that’s something that gets discussed but not nearly as widely picked up in the coverage. So these are the things that struck me as interesting during United’s earnings call.

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CEOs of Delta, American and United Take Out Full Page Ad for Protectionism

by Gary Leff

qatarplane
Apr 18 2019

Qatar Airways owns a 49% stake in Air Italy and is attempting to revive what was once Meridiana into the dominant airline in Italy. With Delta partner Alitalia struggling, that seems possible. Although given Alitalia’s challenges, draining subsidies from Air France and then Etihad and the government of Italy the Italian aviation market isn’t a place that’s likely to produce profits. Delta sniffed around looking to invest in Alitalia, but no deal has been done.

US airlines don’t want to compete with Air Italy, though. They don’t want to compete with anyone, and there’s always a chance to go to the administration and complain about foreigners.

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