Independence Air: Low Fares and High Unit Costs?

Independence Air, the new name for Atlantic Coast Airlines, is taking a different tact from most of the other low cost carriers. It is flying regional jets which means it needs fewer passengers to break even but also that it will have higher unit costs.Ben Mutzabaugh says they are “trying a business plan that’s never been tested before.” He apparently forgets about Midway Airlines — something that’s easy to do because it’s no longer in business.Midway Airlines was so named because it started out at Midway airport in Chicago. In its second incarnation, it was a regional jet carrier based at Raleigh.Midway shut down after September 11th but restarted service once federal payments arrived. After struggling some more, they tried to convert themselves into a USAirways Express carrier but that didn’t last and now they’re…

Continue Reading »

Isn’t it supposed to be the other way around?

Several low fare carriers plan to oppose United’s request that the government back a $1.6 billion loan. United’s response: A spokeswoman for United, Jean Medina, said the airline was “flattered that these competitors consider us a competitive threat.” It’s incredibly indicative of how much the aviation world has changed when United is the underdog that might possibly challenge the dominance of JetBlue, America West, Frontier, Airtran, and Spirit.

Continue Reading »

Diners Club – Highly Recommended

I finally got a Diners Club credit card, and it turns out to be indispensable for the frequent flyer. It’s my new favorite credit card, more so even than my Starwood American Express which I still carry and love. The Diners Club card — Has the most extensive rewards program out there. I still like Starwood’s mileage earning, especially for its bonus of 5000 miles when converting 20,000 points. But Diners Club offers at least one mile per dollar on the airline or hotel of your choice, you get to pick later, and it has a more extensive list of transfer partners than anyone else. And there are always bonus offers running, whether it’s 30% bonus for converting points to United or (it seems like each summer) double miles for transfers to British Airways. The…

Continue Reading »

I need to start paying more attention to discount hotel chains

The darndest things turn up at the Best Western. A rare silver dollar dating from 1866, perhaps the world’s most notable missing coin, may have been turned over to experts last week in the bar of a Best Western hotel in Maine. The coin, valued at more than $1 million, was surrendered in Augusta by a librarian who said he received it from an eccentric friend several years ago in a box of coins of considerably less value. Only two 1866 silver dollars without the inscription “In God We Trust” are known to exist. The other is in a private collection, and the missing one was largely written off as lost after gunmen snatched it in 1967 from millionaire Willis H. du Pont, to whom it will revert.

Continue Reading »

Register And United Will Keep Its Word

United made an offer for substantial bonus miles for flights taken during the first quarter of 2004 — as much as quintuple miles for top elites. Then they changed the wording of the offer, to make the bonus top out at quadruple miles. But many flyers saw the original offer, which was advertised on the United website and in USA Today. After much prodding, United has agreed to honor the original terms of the bonus — but only for those flyers who know about the bait and switch. So you need to register to get them to stand by the terms of their original offer. And do it quickly — it isn’t clear how long the registration link will be valid. Gene Fowler, who has done yoeman’s work in getting United to honor their offer,…

Continue Reading »

Free USAirways Upgrade Certificates

As noted before, but I’ve recently confirmed that this still works — when you sign up for USAirways small business rewards program, the welcome packet comes with (2) space available upgrade certificates useful for North American flights.

Continue Reading »

Gearing up for Sydney Service

Hawaiian Airlines is now selling tickets for its new Sydney flights which commence in May. Prices start at$755 plus tax roundtrip from Honolulu to Sydney and flights are offered four days a week.I discussed prospects for this service when it was announced in January.

Continue Reading »

Points for Your Pooch

As I reported last month Japan Air Lines has a new reward program for pets. Apparently they think it’s one of a kind (subscription required) The JAL Pet Club, as it will be called, will allow consumers to exchange points for in-flight cage rentals, pet airfares and presents for their pets. “We are unaware,” a JAL official told the Japan Times, “of any similar services targeting pets offered by other airlines, Japanese or foreign.” Perhaps they should read this website? As I’ve written before Continental, Virgin, and El Al all offer pet reward programs. Several hotels offer pet loyalty programs as well.

Continue Reading »

New Reward Card

The March issue of Inside Flyer (subscription required) notes a new mileage earning credit card Middle East Airlines and Lebanon’s Banque Audi have launched a new mileage-earning credit card. The Banque Audi Cedar Miles Silver card earns one mile per $1.50 spent, and the Gold card, one mile per dollar. New cardholders receive a welcome bonus of 3,000 miles, an extended grace period, travel insurance, life insurance and insurance against lost luggage when the card is used for ticket purchases, as well as purchase protection (Emphasis mine)This seems like an important benefit for anyone carrying a card issued in Lebanon and earning miles on Middle East Airlines.

Continue Reading »

African Airline Partnerships

The Air France-KLM merger has significant implications for African carriers.The nascent Wings alliance is falling away, and being folded into Skyteam — so that Air France and KLM will be teamed up with Delta, Continental, Northwest, Aeromexico, Alitalia, Korean, and Czech.KLM controls Kenya Airways and Delta partners with South African. Both could potentially join Skyteam.In the meantime, the rest of Africa’s airlines are a mess on their own.

Continue Reading »