Alaska Airlines Is Buying Hawaiian Airlines. Ok For Customers But A Kind Of Dumb Deal?

by Gary Leff

hawaii
Dec 03 2023

Alaska Airlines has announced a deal to buy Hawaiian Airlines for $1 billion cash and assumption of $900 million in Hawaiian Airlines debt. They will keep the two separate brands, though combine their loyalty programs. The deal is expected to close in 12-18 months, subject to approval of Hawaiian’s shareholders and making it through anti-trust review.

For Mileage Plan and oneworld frequent flyers this is great. For Hawaiian customers this should be fine-to-positive. It’s Alaska shareholders that may not benefit from the merger integration costs in order to swallow an unprofitable airline. Although perhaps the biggest beneficiaries will be the transaction and anti-trust lawyers whose billable hours will be immeasurable.

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Delta’s Day Of Disarray: Unbelievable Tale of Endless Errors And Delays

by Gary Leff

Dec 03 2023

Passengers were escorted through a restricted part of the airport, typically off-limits to passengers, by Delta employees and TSA staff. After passing through Customs and checking their luggage, the passengers encountered the first issue.

The group was mistakenly taken to the wrong airplane three separate times, being transported by bus to different planes. When they eventually boarded the correct plane, they encountered another problem.

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American, United Want Out Of Deal To Modernize Chicago O’Hare

by Gary Leff

Dec 02 2023

American Airlines and United Airlines want Chicago O’Hare’s expansion that they signed off on in 2018 slowed down – or stopped – as the project runs $1.5 billion over budget. Somehow the carriers are surprised that a massive public infrastructure project, in Chicago no less, is spending far more than originally projected?

And in fact it’s only just the ‘next phase’ where a 24% projected cost overrun totals $1.5 billion more than expected. That’s before construction on the new terminal even starts! The project’s total cost has grown from $8.7 billion to a projected $12.1 billion. So the terminal’s overrun is only one piece of an overall $3.4 billion price increase.

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The Secret Economics Of Airline Miles: What Banks Really Pay Vs. What You Think

by Gary Leff

Dec 02 2023

Airlines charge banks more for loyalty points than the average consumer realizes, often differentiating between initial bonus miles and ongoing spend, and also accounting differently for miles earned through flying versus credit card spending. During the pandemic, financial disclosures revealed significant margins in airline frequent flyer programs, with American, Delta, and United showing varied margins due to different internal accounting and pricing strategies.

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From Passenger To Pilot: How A Quick-Thinking Traveler Took Over In An Emergency

by Gary Leff

Dec 02 2023

A passenger took the controls of a flight form Toronto to Punta Cana after one of the plane’s pilots became incapacitated. Air Transat flight 186 departed at 9:30 a.m. on November 20 with 299 passengers on board, and was scheduled into the Dominican Republic at 2 p.m. About three hours into the journey one of the pilots became ill. One of the airline’s pilots was among the passengers and replaced the member of the cockpit crew. Dramatic Rendering, Credit: DALL-E The flight continued to its destination, instead of diverting which would have been required with only a single pilot. Earlier this year a passenger stepped into the cockpit to fly after a Southwest Airlines pilot fell ill. Another airline’s pilot was on the Las Vegas to Columbus, Ohio flight and assisted, akin to a pilot…

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Passenger Sues American Airlines After Flight Attendant Videos Teen Girl In The Lavatory

by Gary Leff

Dec 02 2023

Her family is suing and claims that American allowed the crewmember to erase the evidence.

The flight attendant apparently hasn’t worked a trip since the incident but is still employed by the airline and was not arrested. According to the FBI, there was no arrest because “by the time they searched his phone, they could not find any incriminating photo or video on it.” The suit accuses the airline of failing “to take immediate actions after the incident.”

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