Two years ago Delta and American eliminated their interline agreement the most basic level of airline cooperation. That’s the agreement necessary to allow flights on the two airlines to exist on the same time, and that’s necessary for one airline to put its distressed passengers on the other carrier — without literally walking over with a credit card to buy a passenger a ticket.
United’s President Just Gave an Economics Lecture to Investors About the Airline’s Future
As a general matter I think any airline whose operations are being run by Scott Kirby is going to get worse not better for customers in terms of passenger experience. At the same time there’s no one in the industry I’d rather listen to because he’s earnest and thoughtful and lays out more clearly than anyone else his belief about how his business, and the broader industry, works.
He walked through airline economics, United’s positioning, and marginal analysis with a primary goal of convincing investors it is okay for United to grow.
Changes Coming to United Basic Economy Like Paid Seat Assignments and Buy Ups
The point of ‘Basic Economy’ fares — which don’t let you assign seats in advance, upgrade, or make changes for a fee, and at United and American don’t allow you to bring a full-sized carry on onto the plane — is to make the travel experience so unpleasant you don’t want the fare, and will spend more to avoid the restrictions.
The risk is that customers don’t spend more with the airline offering the inferior Basic Economy product, but instead book a different airline instead (or even just decide not to travel). That’s what happened when United launched their basic economy product. They lost business. And they lost about a hundred million dollars.
Amazing Fare: Many US Cities to New Zealand From Just $239 Roundtrip February through June
Available fares from Miami, New Orleans, Atlanta, Houston, Dallas Fort-Worth, Charlotte, New York, Denver, Nashville, Chicago O’Hare, Boston, Philadelphia, Washington DC, Salt Lake City, Portland, Seattle, and Detroit.
Amex Bouncing Back from Costco, Southwest Airlifts Puppies
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Internal Document Shows When American Airlines Will Have Fast Wifi
In the middle of last year American started flying its first plane with high speed satellite internet. I lucked into flying the aircraft at the beginning of November, and internet worked though I was surprised it wasn’t faster. I know what Gogo’s 2ku service can do unthrottled and I wasn’t getting anything like those speeds.
I flew American’s inaugural 737 MAX flight at the end of November and the ViaSat satellite internet didn’t work well.
BOOK NOW: American Airlines Transatlantic Business Class Award Space
American Airlines has been uniquely stingy making award space available on its own flights. I value American miles, but really just because I can book awards on partners like Cathay Pacific and Etihad.
Over the past few years there have been availability ‘dumps’. There will be a day or two or sometimes just a few hours where tons of international business class award space opens up on American flights. We haven’t seen that in many months, but are seeing it again right now.
Court Takes Airline NIKI Away from British Airways, Gives it to Race Driver Niki Lauda
NIKI was driven into insolvency with the collapse of air berlin and withdrawl of support from Etihad. It was expected that the Austrian carrier would go to Lufthansa (specifically their low cost subsidiary Eurowings), but European competition regulators shut down that possibility.
Ultimately British Airways parent IAG was left as the lone remaining company seeking to negotiate a purchase of assets.
Review: Singapore Airlines “The Private Room” First Class Lounge
The highlight of The Private Room is the cooked to order menu, which you can take in the dining room or anywhere else in the lounge you wish. Servers come around to take orders and see if there’s anything they can get for you to drink as well. Service is a plus in the lounge.
Do Hotels Make You Prove You’re Eligible for AAA or Corporate Discounts?
Five years ago a couple of commenters noted being asked to show their AAA card at hotel check-in when staying on a AAA rate. I have never seen this happen myself.
Later that year when AAA sent me a renewal notice with the card I asked readers whether I should just pocket that to show ‘just in case’ or actually pay for the membership, universally the sentiment was ‘you use the discount you pay for the membership.’