The CEOs of American and Delta Keep Using This Word ‘Subsidy’ But Do Not Understand What it Means

May 17 2015

American CEO Doug Parker thinks that when the government picks up his airline’s obligations, that’s not a subsidy because they haven’t given him cash.

Delta CEO RIchard Anderson thinks because they pay corporate taxes they aren’t getting tax (or other) subsidies.

Or at least that’s what they *say* they believe. They can’t possibly really think that, though, right?

Continue Reading »

More Delta Routes Offered for Just 5000 Miles One Way

May 17 2015

Delta isn’t just testing 5000 mile one-way awards on the Los Angeles – San Francisco route. It’s available to several cities, and not just from Los Angeles… though isn’t available between several cities you might expect it.

Know where you can fly for just 5000 SkyMiles each way. And why this remains a disturbing trend for the direction of the program.

Continue Reading »

Review: Male Airport Lounge and (Alone In) Emirates First Class, Male – Colombo

May 16 2015

There’s a shared contract lounge at the Male airport, and it no longer offers access via Priority Pass. There’s little special about it, except for comfortable seating. I find the buffet something I’d rarely do anything other than skip (and indeed haven’t touched the food in four visits) and there’s no alcohol (by law). But it’s a lounge…

Some will find the nearby food options a more attractive place to sit, but the lounge does seem to have gotten its wifi act together.

After waiting around for the flight we wound up the only passengers in first class, and beneficiaries of full, extensive service for this very short hop on Emirates…

Continue Reading »

Delta Introduces 5000 Mile One-Way Awards. And That Should Scare You.

May 16 2015

Delta is pricing one-way Los Angeles – San Francisco awards (that would cost $72 to buy) at just 5000 miles. That’s all part and parcel of reducing the mileage cost of cheap flights, and ultimately increasing the mileage cost of expensive flights.

Put another way, the ‘standard’ 25,000 mile domestic award’s days are numbered at Delta. And along with it, the possibility of generating outsized value from Delta miles. Which also means it makes no sense to choose to earn Delta miles over another currency.

Continue Reading »

Questions That Are Rarely Asked in Airline Competition

May 16 2015

Just to show you how complicated the world is, Delta is lobbying against expansion by Gulf carrier Etihad but has received clearance from the EU for its joint venture and profit sharing with Etihad-owned Alitalia.

Alitalia flying across the Atlantic is apparently deemed good, while Etihad flying across the Atlantic is an existential threat. Right….

Continue Reading »

Delta Publicly Declares the End of the 25,000 Mile Award Standard

May 16 2015

“We’ve worked really hard in trying to keep our commitment to opening up more seats on the lowest level,” said Karen Zachary, Delta’s SkyMiles managing director of global programs. “We used to be really bad.”

…“The 25,000 mile round-trip award fare that historically has been a standard for the airlines, I think you’re going to see that completely change,” Zachary said.

Continue Reading »

US Airlines Are More Subsidized than the Gulf Carriers, and British Airways Weighs in Against American

May 15 2015

The fireworks fly as British Airways submits a filing to the government attacking partner American’s claim that the Gulf carriers unfairly compete, and Etihad produces a report detailing subsidies that US airlines receive which are greater than those the US carriers claim are received by Etihad, Emirates, and Qatar. Things are getting *interesting*.

Continue Reading »