basic economy

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How to Fix American Airlines and the AAdvantage Program

by Gary Leff on September 6, 2016

Sep 06 2016

For several years American Airlines offered a clear value proposition. It made sense to fly American and earn status in the AAdvantage program because they were more rewarding than Delta or United. I’ve written for many years that benefits which are significantly more rewarding than average won’t lost, and it’s no surprise that American has cut back on its generosity.

However with the airline operation lagging, cuts to the AAdvantage program, and strong indications of more cuts to come, I’ve been flying American less.

Delta Goes After Alaska With 5000 Bonus Miles, Double Miles, and Gold Elite Status Offer

by Gary Leff on August 30, 2016

Aug 30 2016

Delta and Alaska were once close partners. In fact, at one point it was expected that their partnership could grow to exclude American (which also partners with Alaska).

Instead Delta has built up a hub operation in Seattle — first for transpacific flights, and then feeding those flights with its own domestic route network rather than transferring passengers on its partner Alaska.

And there have been fantastic offers ever since…

Scott Kirby Leaves American Airlines to Become President of United

by Gary Leff on August 29, 2016

Aug 29 2016

American Airlines sent out a press release announcing that its President Scott Kirby is leaving American Airlines “effective immediately.” And there was no mention of where he was going or why.

United sent out its concurrent release announcing Kirby as its new President.

American Airlines Eliminating Fare Bundles, Will Change How It Upsells You

by Gary Leff on August 14, 2016

Aug 14 2016

At the end of 2012 American Airlines introduced fare bundles.

The idea was to offer a modestly higher fixed fare price for a set of value-added benefits, that you could purchase at time of ticketing — through American’s own channels, and also they hoped through third parties as well.

Their upsell and bundling strategy has, apparently, changed.

United Gets Contract With Mechanics Too! Ready to Complete 2010 Merger and Move Forward

by Gary Leff on August 12, 2016

Aug 12 2016

Earlier today we got news that United’s flight attendants had ratified a contract. It was a close vote — 90% of flight attendants cast ballots and only 53% of those voted in favor. But it lets the airline move forward combining the legacy United and legacy Continental flight attendant groups as one.

As I wrote at the time, United will finally be one airline in the sky. From a customer-facing standpoint that will complete the merger.

But the airline’s work isn’t done, even with that. United has been working for years on a contract with mechanics.

Congratulations to a New Vice President for American AAdvantage

by Gary Leff on August 9, 2016

Aug 09 2016

In May I shared that Suzanne Rubin would be leaving as head of the American AAdvantage program. She led the program since December 2011 when Maya Leibman became the American’s Chief Information Officer and brought stability to a role that had seen several leaders in a short time.

American announced today that Bridget Blaise-Shamai has been promoted to Vice President – Loyalty and President of the AAdvantage program. Bridget’s role had been Managing Director, Customer Loyalty and Insights – the position Suzanne held before becoming AAdvantage Vice President. She was the the senior person on the team once Suzanne left and the manager in charge in the interim.

Expect the Worst Changes to Elite Benefits at American in 2018

by Gary Leff on July 22, 2016

Jul 22 2016

Back in May American Airlines President Scott Kirby shared that they planned to offer domestic premium economy as well.

On this morning’s American Airlines earning call Scott Kirby, in response to a question about an hour in, added some color to domestic premium economy.

One Hotel Truly Recognizes Loyalty — Even When You’re Not Paying Them a Cent

by Gary Leff on July 15, 2016

Jul 15 2016

I often write that in loyalty, I am not my rate or my fare. I am either a valuable customer or I am not, and the way I’m treated should be the same on every single trip — whether I’m on an expensive walkup ticket for work during the week or a cheap discount trip with family over the weekend.

United Unveils Plan to Improve Financial Performance By $3 Billion (Is Gonna Cost You)

by Gary Leff on June 22, 2016

Jun 22 2016

United held a call yesterday morning where CEO Oscar Munoz talked about the ways that the airline would cut costs and generate more money from customers.

United has a lot of catchup to do with the rest of the industry on both sides of the equation. My takeaway was that their plan seems to be to copy and catch up, rather than chart their own course.

Why Even After American’s Changes They’re Still Better for Me Than Delta… Barely

by Gary Leff on June 7, 2016

Jun 07 2016

With changes to the AAdvantage program that make it so much more like United MileagePlus and Delta SkyMiles, elite frequent flyers at American especially are re-considering their loyalty.

Some members will do better with the changes (higher spending; those flying 75,000 – 99,999 miles a year with average or better spend) and many will do worse (especially lifetime elites).

American thinks these changes are going to be good for revenue, but American has been performing better than United financially already and Delta doesn’t think its frequent flyer program changes are a driver of their revenue premium.