The Battle For What The Southwest Airlines Meltdown Means For Society Has Begun

by Gary Leff

Jan 09 2023

A confluence of events, from weather to staffing to technology, combined to drive the meltdown which will cost Southwest more than more investment would have, in other words it’s a story of management error more than greed. Management lost free cashflow rather than increasing it.

It’s a tragedy for people whose holidays were ruined, but it’s not an easy story about industry consolidation (this didn’t happen because Southwest bought AirTran) or ‘financial capitalism’ (until the meltdown Southwest was the story of a company that’s highly unionized with a great culture). Trying to make it an allegory for a hobby horse doesn’t work when the facts aren’t there.

Continue Reading »

Good Award Space On American Airlines Premium Cross Country And Hawaii Flights

by Gary Leff

Jan 09 2023

American Airlines miles are great for redeeming on partner airlines at great value, such as Japan Airlines to Asia and Iberia to Europe. However it can be tough to use AAdvantage miles to actually fly American, without paying a big premium in miles, especially if you want to fly up front. And most people want to use American’s miles to fly domestically.

Fortunately right now there’s surprisingly good award space in premium cabins between the West Coast and Hawaii, and on American’s premium flights between New York JFK and Los Angeles. It’s a great time to jump on these redemptions, even if you only think they might be useful, because American no longer charges a fee to cancel your award and redeposit the miles.

Continue Reading »

Europe From Just $298 Roundtrip (Cheap Business Class Deals, Too)

by Gary Leff

first class seats
Jan 08 2023

Airfares have been through the roof, but right now there’s a sale on from several U.S. cities to numerous destinations across Europe – starting at just $298 roundtrip on Star Alliance member (United MileagePlus partner) TAP Air Portugal. You can fly from Boston, Chicago, Miami, New York JFK, Newark, San Francisco or Washington Dulles (the cities where TAP Air Portugal flies) to their destinations across Europe – like Barcelona, Madrid, Milan, Frankfurt, Munich, Rome (or even Porto, Valencia, Malaga, or Bilbao) – for prices ranging from $298 – $398 when sale fares are available. The opportunity was first spotted by Thrifty Traveler‘s airfare deal alert service. Here’s an example from Boston: Just how good a deal is this? The cost is almost entirely taxes and fees. The actual airfare? Just $15.50 each way. Key details…

Continue Reading »

Mexico Has Purchased An Airline, Will Turn It Over To The Military To Run

by Gary Leff

Jan 08 2023

Mexicana was one of the oldest airlines in the world when it went out of business in August 2010. The carrier had been flying to the U.S. since 1920, when it began operating Mexico City to Tuxpan to Tampico to Brownsville, Texas with a Ford Trimotor.

The carrier, partially-owned by the Mexican government, went into bankruptcy, and a great deal was revealed about how key executives used the business for tax fraud and money laundering.

Continue Reading »

How Much Does It Cost An Airline To Produce A Frequent Flyer Mile?

by Gary Leff

Jan 07 2023

When laying out the reasons why American Airlines devaluing AAdvantage program could be bad for its business I noted financial disclosures they made to investors when raising debt backed by their loyalty program.

Taking their self-reported 52% operating margin for the program, I backed into what it cost for American Airlines to ‘produce’ a frequent flyer mile.

Continue Reading »