Southwest Gives In To Elliott: 5 Board Seats, Stock Plunges—Is This The End of Their No-Fees Era?

Oct 24 2024

Southwest Airlines didn’t exactly surrender to Elliot Management, but they agreed to put 5 Elliot nominees on a 13-member board of directors in exchange for their dropping the petition for a special meeting of the board.

Already, the airline has given Elliot much of what they were asking for. The activist investor spurred movement on assigned seating, premium seating, partnerships, and redeye flying which are things Southwest had moved very slowly on.

Continue Reading »

Passenger Shares Photo Of Their Plane – And The Wing Is “Duct Taped” On

Oct 24 2024

Probably the most misunderstood thing in all of aviation is speed tape. Passengers see what looks like ‘duct tape’ on their plane, and they worry whether it will hold together. The plane doesn’t look safe and first impressions over safety matter right now with aviation safety top of mind given the issues we’ve seen with the Boeing 737 MAX 9 door plug, air traffic control mishaps, and pilot error over the past couple of years.

Continue Reading »

American Airlines Lost $149 Million – Declining Revenue Per Seat And A Strategic Void Spell Trouble Ahead

Oct 24 2024

Ultimately they should see some mean reversion in corporate bookings, but they’re unlikely to become a leader. They don’t have a strategy to better than today in key markets like New York, Chicago, Los Angeles and San Francisco. They don’t have a strategy to get customers to pay more to fly American than competitors – which will become even more crucial with their higher costs, and as the supply of premium seats grows. AI and cost-cutting alone is not a vision.

Continue Reading »

TAP Air Portugal’s New 58,000 Mile Bonus: Why This Odd Offer Is Perfect for U.S.-Europe Travel

Oct 23 2024

Last year, Star Alliance member TAP Air Portugal launched a U.S. credit card with Cardless. At the time, they had a 60,000 point initial bonus offer, but that dropped down to 30,000 points after the initial push for cardmembers.

Now they’re back with a strong acquisition offer: 58,000 bonus miles That’s an odd number, right?

Continue Reading »