View from the Wing

United Could Have Problems Squeezing More Money Out of a New Deal With Chase

by Gary Leff on October 16, 2017

Oct 16 2017

United and Chase renewed their credit card agreement two years ago and there’s already talk of the next extension, which suggests that they made a 5 year deal which historically was standard although we’re seeing more 7 and even 10 year deals in the co-brand space.

The financial analyst most bullish on credit card revenue for airlines now believes that United’s bargaining position may have slipped as a result of Chase’s success with its own products and American Express’ investments in its Platinum card in the broader competitive space.

Delta: Subsidies for Me But Not For Thee

by Gary Leff on October 16, 2017

Oct 16 2017

The Partnership for Fair and Open Skies is putting out a statement against Emirates, Etihad, and Qatar in response to Emirates pointing out just how many Boeing aircraft they buy — a direct contrast with Delta.

However Delta at the very same time is directly at odds with Boeing over subsidies, with Boeing arguing that Canada shouldn’t be able to subsidize aircraft manufacturer Bombardier, and Delta arguing that they should be able to benefit from these subsidies.

These two things are not at all inconsistent.

Supreme Court Will Decide if Credit Card Rewards Matter For American Express Anti-Trust Case

by Gary Leff on October 16, 2017

Oct 16 2017

In the biggest case for loyalty programs since Northwest v. Ginsberg, the Supreme Court has agreed to hear Ohio v. American Express, reviving an anti-trust case brought by retailers and 11 states which argued that American Express violates anti-trust rules in its merchant agreements.

At issue is whether benefits to consumers — like rewards and credit card protections — count when determining whether the market is competitive (do we look at both sides of a two-sided market, or only the merchant-network relationship)?

Two Delta Passengers Walk Down Jetway and Onto the Las Vegas Tarmac

by Gary Leff on October 16, 2017

Oct 16 2017

Two passengers off of Delta’s flight DL5684 in Las Vegas were questioned and the plane’s baggage swept after 2 passengers “went down the jetway and.. went down the stairs” at the end of the jetway and onto the tarmac rather than boarding the San Jose-bound Embraer.

Womens March Co-Chair Kicked Off American Airlines Flight, Says Pilot Was Asserting White Privilege

by Gary Leff on October 16, 2017

Oct 16 2017

Womans March co-chair Tamika Mallory was kicked off an American Airlines flight from Miami to New York yesterday which was taking to attend Reverend Al Sharpton’s daughter’s wedding.

She had a middle seat on the flight but managed to change herself to an aisle seat using a kiosk. However she was called to the gate and given a new boarding pass for a middle seat. She challenged this and says the gate agent was “nasty” and “disrespectful.”