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.
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.
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…
I had read about the reduced seat pitch in British Airways intra-European business class, “Club Europe.” I knew it was 30 inches. But surely it had to be a spacious 30 inches. Like Donald Trump’s hands, it wasn’t.
Now there’s no more legroom in business class than there is in coach, and it’s an inch less legroom than the major US airlines offer in coach. Instead, British Airways “Club Europe” is coach with a blocked middle seat and a cold meal tray.
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.
American was, for many years, a bankruptcy waiting to happen. They pushed it off and pushed it off while they lost money and their competitors drove down costs through what Donald Trump refers to as “the Chapters.”
They lost control of the process though and wound up being taken over by US Airways rather than emerging independent. Time and again American management expressed a desire to emerge independent and then consider any merger. For all the time American spent waiting to enter Chapter 11, they still had plenty of cash on hand and an ability to meet their creditor obligations — though not a long run likelihood of returning to profitability.
One irony is that if they had waited longer they probably could have emerged independent. A year or so longer and the would have been in bankruptcy while fuel prices were dropping, they would have turned profitable and legacy management might have remained in place. However, three things happened:
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 »
