CONFIRMED: American Bringing Back Carry On Bags to Basic Economy, Punishing Customers is Bad Business

by Gary Leff

airline cabin
Jul 26 2018

On July 3rd I shared that American was poised to relax the most draconian restriction on their lowest-price Basic Economy fares, once again allowing customers on these lowest fares to bring both a personal item and a full sized carry on bag onto the plane. American refused to comment.

However this change has now been announced in this morning’s earnings release, and points to the failure of the business strategy of making your product worse in hopes of generating more revenue.

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Breaking: New Marriott Program Launches August 18th, Here’s What You Need to Know

by Gary Leff

lounge
Jul 25 2018

Three months ago Marriott shared details on how they’d be bringing their three loyalty programs together with Marriott Rewards, Ritz-Carlton Rewards, and Starwood Preferred Guest all operating on a single platform and single set of rules starting in August.

The new Marriott program launches August 18. I spoke with David Flueck, Marriott’s Senior Vice President of Global Loyalty, on Tuesday to talk about the transition and get several more questions answers about what to expect.

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Partially Caving to China’s Demands, Here’s How US Airlines Refer to Taiwan Now

by Gary Leff

temple
Jul 25 2018

While at first it appeared that American’s Chairman Parker and United’s Chair Garvey had surrendered to Chairman Mao, the reality seems a little more nuanced than that.

We’ll see if these State Department-worthy maneuvers suffice to stay out of China’s crosshairs, whether China declares US airlines to be failing to comply, or whether there are problems with airport slots in China, with convenient gate access, or myriad other permit problems on the ground.

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Aeroplan Issues Response to Air Canada’s Buy Out Offer

by Gary Leff

stock market graph
Jul 25 2018

Air Canada along with Aeroplan’s financial partners has made an offer to buy Aeroplan, the spun-off frequent flyer program with which Air Canada has an exclusive agreement through June 2020.

The market seems to like this deal, or at least believes that the move signifies some deal will occur at a price premium over prior-day trading.

Aeroplan has now issued its response.

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British Airways Launching Pittsburgh Service and Inaugural Business Class Awards Are Available

by Gary Leff

airline cabin
Jul 25 2018

Pittsburgh was abandoned as a hub by US Airways starting around 2004. Twenty years ago they flew to about 120 destinations from Pittsburgh. By the end of the decade they had only half that number of flights and were using just 10 gates.

The airport has attracted new service from low cost carriers, but is no longer a hub. They haven’t had service to London since US Airways eliminated Gatwick service in 2004. Today the only transatlantic flying from Pittsburgh is seasonal Frankfurt service (Condor), seasonal Paris service (Delta) and year-round Reykjavík flights (Wow Air).

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More Detail on What Air Canada Buying Aeroplan Would Look Like for Members

by Gary Leff

lounge desk
Jul 25 2018

This morning I wrote that Air Canada made an offer to buy Aeroplan at a $2.25 billion valuation.

Aeroplan was spun off from Air Canada 13 years ago. It’s a separate, independent business that’s part of Aimia, a loyalty company which several other interests as well. Air Canada announced last year that they were going to start their own program and no longer work with Aeroplan.

Here’s more on what the proposed deal for Air Canada to re-acquire the Aeroplan program would look like.

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Air Canada Proposes Buying Back Aeroplan, Instead of Competing Starting in 2020

by Gary Leff

air canada plane tarmac
Jul 25 2018

This would allow Air Canada to start with all of Aeroplan’s members, instead of starting from scratch. It would take the pressure off of Air Canada to offer as rich a value proposition to members in order to compete with Aeroplan.

There’s a certain irony to spinning off the program, realizing income, driving down the value of that program and then acquiring it on the cheap.

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American Airlines Doesn’t Update Customers About Delays Even When Fuel Spills Out of the Wing

by Gary Leff

plane fueling up
Jul 25 2018

It’s been over 3 years since I wrote about American’s ‘Goldilocks Problem’ boarding planes too early (before stated boarding time on boarding passes) and updating customers about delays too late.

I find that American won’t post flight delays until boarding time for an aircraft, even when those delays are blindingly obvious. And they won’t update delays until revised departure times have passed. Even when fuel is spilling onto the tarmac.

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