Just as American will be introducing ‘Basic Economy’ fares – fares that exclude many of the benefits we’ve come to expect with a ticket, like an advance seat assignment — United will be as well.
It’s interesting to see the way they’re presenting their thinking.
They see (3) customer types and three benefit types, and it seems illogical to them that all three customers get the same ‘stuff’.
American Airlines launched their Sydney flight with an improved meal service. American executives described it as a test. The flight was expected to be higher yield, justifying the investment which was also necessary as a part of their joint venture with Qantas given the expectations of Qantas customers.
Back in December I asked whether the better meals would be rolled out more broadly, and at the time they didn’t know. It seemed a good guess that it would be a part of the Auckland flight, which is included in the joint venture with Qantas. And that it could be something American would do on high yield ultra long haul flying like Dallas – Hong Kong. I didn’t expect it would spread systemwide.
However that’s exactly what American’s CEO Doug Parker shared at the JP Morgan airline and transportation conference yesterday.
Early this morning American Airlines had accidentally posted on their website the launch of new Los Angeles – Hong Kong service, which I’ve been expecting since November or December. They promptly pulled the announcement down, however American confirmed the news for me.
American has focused on Los Angeles for building up its Pacific route network. They recently added a Sydney flight (with an improved inflight service). They’re adding Auckland, New Zealand. And they’re adding Tokyo Haneda service. And those are all international routes that face competition.
Now they’ve formally announced the Los Angeles – Hong Kong flight, and provided details.
American Airlines CEO Doug Parker spoke at the J.P. Morgan Aviation, Transportation and Industrials Conference today.
He made several interesting remarks. From a customer standpoint, though, the one piece of ‘news’ that I heard in the presentation was about Basic Economy fares.
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With Oscar Munoz set to return to United as CEO after a medical leave in a week, the airline is also planning to replace a few directors – the former head of T Rowe Price, the former Chairman of Air Canada, and the CEO of Red Hat. But the plan faces opposition.
Altimeter Capital Management and PAR Capital Management which together own 7.1% of United are backing six new board members at the airline led by former Continental Airlines CEO Gordon Bethune.
I had heard back in November or December that a route announcement for Los Angeles – Hong Kong was imminent. So I was surprised that when they made their big splash about growth at LAX they didn’t announce the service then.
Last night American put Hong Kong service up on their website in error, and quickly pulled it down. I asked American spokesperson Casey Norton, and he confirmed the service.
American Express hasn’t even lost Costco charges yet, and it’s reeling. Here’s the inside story on how Amex lost the Costco deal. Delta is their second largest co-brand, but with Marriott buying Starwood they presumably lose the ability to issue Starwood co-brands at some point when the programs are expected to merge. Although American Express wants to find a way to keep the Starwood card post-merger.
American Express lost the JetBlue co-brand to Barclays though it’s small. Their network is no longer used for Fidelity card transactions.
I ran into four different couples who came up and introduced themselves to me last month at the Park Hyatt Maldives. I got another email from a reader who saw me there but didn’t say hello. That’s at a resort with only 50 rooms. We’ve taken over.
The Park Hyatt Maldives is a great aspirational property. As a category 6 (not 7!) hotel in the Gold Passport program, it’s a great value for 25,000 points a night when room rates often exceed $1000. And it’s a great use of the 2 free nights that come with the Hyatt Visa.
One of the folks I met there, Steve S., shared the rest of their trip with me by email:
I love the American Express Centurion lounge in Dallas. I transit DFW more than any other airport. Depending on the day of week American has 14 or 15 flights a day between my home airport in Austin and their hub at Dallas Fort-Worth.
When the lounge first opened it was a marvel: good quality chef-inspired hot food, good cocktails, a complimentary spa and showers not to mention stylish furnishings. The problem is that it’s gotten more and more crowded.
I like taking matters into my own hands and I’ll share with you what I do, fully realizing that readers may wind up taking the option away from me…
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
