United and American Discounting Their Miles Through End of Year

airline seat
Dec 10 2017

We used to think of miles as worth 2 cents apiece. That was a simplistic calculation, 25,000 miles paid for a $500 domestic ticket more or less. The truth is miles with several airlines used to be worth far more than 2 cents apiece. They’d sell you miles for 3.5 cents, and credit card signup bonuses were commonly 5000 miles (if anything at all).

Airlines have so devalued their miles that most aren’t worth anywhere close to 2 cents anymore, although the specific value of each currency varies. As a result, in order to get the same juice in consumer behavior as because, it’s necessary to…

Continue Reading »

Government Withdraws Plan to Regulate What You See When You Search for Airfare

Dec 10 2017

In January the Department of Transportation published a ‘supplemental notice of proposed rulemaking’ on their existing rulemaking docket from 2014 regarding transparency of ancillary fees.

DOT proposed to that fees for first and second checked bag and carry on bag be disclosed “wherever fare and schedule information is provided to consumers” and this would have to be provided “at the first point in a search process where a fare is listed in connection with a specific flight itinerary, adjacent to the fare.”

Continue Reading »

Woman Kicked Off Flight for Breastfeeding Her Crying 2 Year Old

spirit plane
Dec 10 2017

A woman traveling with her elderly parents and her two year old was kicked off a Spirit Airlines flight. Spirit says it’s for failing to follow crewmember instructions. But the crux of the matter is what were those crewmember instructions.

Since it was Spirit Airlines, the flight was delayed. She “unbuckled her child and began breastfeeding since the plane was still boarding” and her son was hungry.

Continue Reading »

American Will Have Seat Power On The Old US Airways Planes — Eight Years Into The Merger

Dec 10 2017

American Airlines has offered inflight power to passengers for years, but US Airways didn’t. In fact, after America West acquired US Airways they removed power from the US Airways planes that already had it. The idea was to reduce weight and save fuel.

It’s been four years since the American Airlines – US Airways merger. And in four more years they’ll finish putting power into the old US Airways ‘basket of deplorables’ fleet.

Continue Reading »

US Airlines Again Will Earn Half the World’s Profits

delta plane
Dec 09 2017

After earning more than half the world’s airline industry profits for three consecutive years, US airlines will only earn nearly half the world’s profits for 2017.

Remember that the next time you hear about an airline asking government for special favors, protection for jobs, or subsidies to start international service from a local airport. The desperation in their voice is fake.

Continue Reading »

Watch My Credit Score Bounce Around Like a Yo-yo

credit score ranking
Dec 09 2017

FICO scores (versus VantageScore) are used in 90% of credit decisions. FICO is used in mortgages, which is precisely what I care about my credit score for. I’m not marginal for an auto loan.

Most of the time I don’t worry about my credit score. Pay bills on time and for the most part most people will be fine. But credit scores do matter for the big stuff, and when the score is marginal it can make the difference between approval and denial for rewards credit cards.

Continue Reading »

British Airways Shows How Cuts to Quality Destroy an Airline Brand

Dec 09 2017

British Airways no longer has a positive net promoter score among its own customers. They obliterated their reputation very quickly. And data shows that customers have become more likely to leave British Airways for a low cost carrier.

So rather than making BA more competitive, they’ve given up their competitive edge. There are lessons here for US airlines as well.

Continue Reading »