United Threatens to Leave Newark Over Fuel Taxes

by Gary Leff

airport newark
Sep 15 2018

New Jersey is considering raising aviation fuel taxes — but only on United Airlines. Currently New Jersey taxes fuel burned during taxi and takeoff. A bill under consideration would extend that to all fuel that United burns (since it applies only to airlines carrying over 8 million passengers per year out of the state).

United’s position “the tax is enacted, she said United might have to consider transferring the bulk of its operations to one of the other hubs.” The extra cost to United is expected to be $20 million. United will not abandon its Newark hub over $20 million.

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San Francisco Centurion Lounge: Departing Passengers Only, No More Than 3 Hours Before Flight

by Gary Leff

outside lounge
Sep 14 2018

Ultimately there are too many people who have been eligible to use the lounges, who have wanted to use the lounges, relative to the size of the lounges. There’s only so much they can do to expand capacity in the airports they work in (and larger lounges are going to attract more people who still stay longer, since currently some people – like me – often stay away precisely due to the crowding).

It is simply difficult to offer a quality lounge product which includes a peaceful, quiet experience for the number of people who have access through Platinum American Express cards.

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Sydney Fare Deal: Premium Economy $1797 Roundtrip (And How You Know a Deal is Good)

by Gary Leff

syndeyhouse
Sep 14 2018

Premium economy is like domestic first class with foot rests (or in some cases a foot bar). It doesn’t let you lie flat, but it gives you extra room and some upgraded amenities. I don’t think it’s a replacement for business class on ultra long haul flights, but it’s ‘good enough’ flying transatlantic Westbound (day flight) and certainly a whole lot better than coach.

I watch Sydney fares because I have family in the suburbs there, and I’ve been going since I was a kid. In fact my very first international trip was to Australia. I even flew American Airlines the last time they served Sydney — DC10s via Honolulu.

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Why I Don’t Think Hyatt Will Devalue Points Any Time Soon

by Gary Leff

building overlooking water
Sep 14 2018

When I wrote that Hyatt points have remained a remarkably steady source of value for the last 5 years since they devalued their points, that even when they announced those changes in late 2013 they weren’t that bad, and since then even the modest shifts in award categories we’ve seen for hotels have been balanced my point was to re-assure about Hyatt points not to cause consternation.

However I received several comments along the lines of why are you pointing out to them it’s time to devalue? Hyatt is already aware of the economics of their program and when they last made changes.

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The President of United Airlines Thinks Airfares Should Double

by Gary Leff

airplane seats
Sep 14 2018

United’s President spoke yesterday at the Morgan Stanley 6th Annual Laguna Conference. It’s always interesting to listen to him, he lays out his thinking more clearly and candidly than most airline executives.

One thing pointed out is that “in the last 30 years airline revenue as a percentage or GDP has gone to about .6 from about 1.2%.” The conclusion he draws is that airfares should double, “we are under pricing our product by 50%.”

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Tiresome: Now American is Complaining About Competition from an Italian Airline

by Gary Leff

qatarplane
Sep 14 2018

We thought US airlines were done complaining about competition when Emirates, Etihad, and Qatar settled complaints this year. But American is back at it — now complaining about a European airline that’s part-owned by a Gulf carrier.

American Airlines CEO Doug Parker is worried about airline jobs when airline employment is at a peak and when his own flight attendants and mechanics unions are furious at him. Although it’s a well-worn strategy to blame foreigners as a distraction for problems at home. It’s even more ironic though because he did this in a speech where he also talked about inclusion.

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Missing Miles for Your Spending at Airports? Check Your Accounts

by Gary Leff

united plane
Sep 14 2018

I’ve gotten value from Thanks Again earning miles for years, just a few at a time. They started out with brick and mortar retailers and I’d earn points when I least expected it. Then they pivoted to focus largely on airports.

When you go through the airport you’re the airline’s customer, and the airport rarely knows who you are. But the airport makes money when you spend money at retailers there. So by rewarding that spend they learn about who their best customers are can provide even greater rewards.

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