When United started talking bankruptcy, it’s mileage earning credit card partner Bank One started seeing fewer new applications. Folks decided they’d rather earn miles on a less risky carrier. The Mileage Plus Visa is such an important part of Bank One’s business that they coughed up almost half of United’s debtor-in-possession financing to help them through restructuring. Even Bank One’s unprecedented 20,000 bonus miles signup offer (not to mention offer of an upgrade certificate, companion ticket, and 2500 additional bonus miles for adding cardholders to the account) hasn’t seemed to stem the tide.
Senate Blocks Air Traffic Control Privatization
The govenrment air traffic control system is near overload because more smaller jets are replacing fewer larger jets. Bob Poole of the Reason Foundation argues convincingly that a private system would work much better. Unfortunately, the Senate voted to prohibit privatizing air traffic control functions, over the President’s objections. While slightly different language than in the House FAA appropriations bill, it suggests that the final reconciled legislation will include a ban. This seems like a good time for President Bush’s first veto.
Low Cost Carriers — Better Amenities Than Their Full Service Rivals?
Amenities on low cost airlines are improving, even as mainline “full service” carriers cut back. For the average traveler, that will make JetBlue more attractive than Delta. This change has already entered the public’s consciousness. My boss’s assistant was excited that she was able to book him on JetBlue for an upcoming trip to the West Coast because “it’s supposed to be better.” Only my boss wasn’t excited. And this is why the full service airlines, while becoming less attractive to the infrequent flyer, are still more attractive to the road warrior. Two words: elite upgrades. While JetBlue’s coach product is probably superior to Delta’s, it’s frequent flyer program isn’t as generous and won’t take you nearly as far. Most importantly, though, frequent flyers get upgrades. Among the low cost carriers Airtran is unique in…
Just joined blogshares
Congratulations!
I just discovered my friend Laurel’s blog, only to learn that she’s getting married! I think that rates a permanent link to the right…
It was the customer’s fault
I mean, she didn’t have to eat at Sizzler. (But then it could have been worse — dinner at Red Lobster!)
American Airlines Makes Coach Even Worse (And You Didn’t Think That Was Possible – Hah!)
American Airlines is ending the practice of blocking middle seats next to it’s elite frequent flyers (filling those seats last to increase the likelihood of an empty middle next to an elite sitting in coach). They say it presented problems for kiosk check-in, raising costs because more people had to visit live checkin agents. So the coach experience at American, already being devalued with the elimination of “More Room Throughout Coach” on some routes, is being made worse. I know who I won’t be flying. (Thanks to David Rowell for pointing this out.)
Another Starwood Instant Gold Status Promotion Code
New Starwood Preferred Guest members can sign up for the program by calling 1-800-625-4990 and mention promotion code CV (from British Airways). That will sign you up at the gold level. Just worked moments ago for a colleague.Update: Folks have told me that calling the above number refers them to a 900 number. My bad! It’s 1-888 (not 800)-625-4990.
Travel Advisory
Men should stay away from Uran, India because of a rash of women attacking men and cutting off their penis.
Will the Repo Man Come-a-knocking?
Discount and charter airline ATA is making a little bit of money — unique among airlines — but not enough to cover upcoming debt payments. They don’t have sufficient assets to pledge against additional loans to cover their $300 million in required payments. On the other hand, with the used aircraft market as soft as it is, Boeing is unlikely to simply want the planes back. I expect ATA’s management to be able to refinance. Since there’s actually some profit rolling in, flexibility will be Boeing’s best shot at repayment.
