Virgin Atlantic Rescue Plan On Track, Your Miles Are Safe

virgin atlantic
Aug 25 2020

Virgin Atlantic has raised $525 million in cash via three new loans, and creditors have agreed to take a hair cut. 42.5% comes from a hedge fund, 50% of the loan comes from Virgin Group, and the remaining 7.5% from a new loan against an aircraft engine.

Delta and Virgin Group get preferred stock as a swap against payments they’re owed by the airline. And the airline is reducing its aircraft lease obligations.

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American Airlines Will Furlough 17,162 Employees On October 1, According To Internal Company Memo

Aug 25 2020

In the fourth quarter, after CARES Act payroll restrictions lift and airlines can furlough employees, American Airlines plans to operate less than 50% 2019 flying and just 25% of international. They simply have too many people for so few flights, because there isn’t nearly as much demand for air travel.

The airline has calculated that they need 40,000 fewer employees compared to a year ago in order to operate this fall. And they’ve worked out the number of furloughs to take place October 1, detailing them by work group.

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A Trick To Knock 67% Off British Airways Award Fuel Surcharges Right Now

airplane bed
Aug 25 2020

British Airways makes a lot of business class award space available, but they’re expensive. Departures from the U.K. incur significant ‘air passenger duty’ and awards also incur fuel surcharges. A roundtrip business class award between the U.S. and U.K. might run $1300 in taxes and fees.

Right now there seems to be a quirk booking awards on British Airways that you can exploit to reduce fuel surcharges (or ‘carrier-imposed surcharges’) by about two-thirds.

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Business Class To Europe For Just 17,000 Miles [Iberia, Chase, American Express Or Transfer From British Airways]

stock airline bed
Aug 25 2020

Iberia is offering 50% off redemptions booked by August 30 for travel September 1, 2020 through March 15, 2021. That’s a six and a half month period for travel, and creates an opportunity where we might just be able to travel again – and do so cheap, from just 17,000 miles each way between the U.S. and Europe.

And I just posted about amazing Iberia business class award availability between Madrid and Chicago, Miami, and New York JFK. Often when Iberia discount awards availability is scarce, but that’s not the case here.

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Delta Plans To Mortgage SkyMiles To Raise Cash

Aug 24 2020

Past advance sales of large blocks of miles to credit card partners have on balance probably been good for members, borrowing against the program may not be although it’s far from a foregone conclusion.

You’d expect lenders to want a strong program to secure future member interest and an ongoing revenue stream yet in practice that’s not how things usually work out. Still, while Delta has a strong elite program, there’s really not much left to devalue on the earn-and-burn side.

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Delta Furloughs 1,941 Pilots

Aug 24 2020

Delta has let employees know that they’re furloughing 1,941 pilots hired July 17, 2017 and later. That’s out of a remaining approximately 11,200 remaining pilots with the company, after accounting for voluntary early departures from the airline.

Furlough letters will be sent out this week.

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