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Air France KLM Will Mortgage Its Frequent Flyer Program For $1.5 Billion

air france
Aug 02 2023

Air France KLM insists Flying Blue won’t be spun off. CEO Ben Smith was President of Air Canada when their relationship with Aimia which ran the spun-off Aeroplan program went south, and the carrier laid out plans to bring the loyalty program back in house. While some analysts see spinning off loyalty programs as a way of ‘unlocking value’ in fact spinoffs create frictions which destroy value.

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Air France KLM: Trying To Make Our Program Better So Americans Transfer Their Bank Points

Dec 15 2022

Ben Lipsey, head of Air France KLM Flying Blue who got his start in the airline industry by messaging Air Canada’s President on FlyerTalk to score an internship when he was 20 years old and eventually moved over with Ben Smith when he became CEO of Air France KLM, gave an interview where he talked about the importance of the program’s value proposition for Americans.

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Air France KLM Introduces New Award Chart, Free Stopovers

Dec 07 2022

I still see Flying Blue as the most useful SkyTeam program, with better award availability on Air France and KLM for their own members than is offered to partners and mostly reasonable pricing when saver inventory is available. The addition of free stopovers on one way awards is great, and modest pricing and region adjustments are things most will be able to live with.

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Why Airlines Pricing Award Tickets At One Million Miles Is Stupid

Jul 31 2022

Some programs offer ‘saver awards only’. Award space is available or it isn’t. You get a ‘decent’ price, or no option to book at all.

Other programs offer last seat availability, or access to most seats for points. But when fares are exorbitant, the algorithms can lead to some absurd results, like over a million miles for a one-way flight on peak travel days. That makes the program look bad, and even if members like “last seat availability” offering these seats costs too much to the program’s reputation.

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Massive New Bailout Of Air France, Including Funds From China

air france plane
Apr 06 2021

Last year Air France KLM received $12.3 billion in government aid. Now the government of France will provide a new $4.7 billion in support, while the Dutch government is in talks with European regulators over an additional $1.18 billion.

The new aid to Air France is “a state-backed recapitalization,” converting loans from the government into “bonds with no maturity” along with additional capital through the issuance of new shares.

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Airlines All Over The World Are Having Success At One Thing – Getting Governments To Give Them Money

lufthansa plane
Apr 24 2020

While there’s no doubt that airlines are struggling in the face of a sudden evaporation of demand for their product, what’s especially striking about this moment is the success airlines are having at the political game given that public health concerns might take budgetary priority – such as prioritizing funds for hospital beds, protective equipment, ventilators (which don’t appear to do much good) but just as importantly for treatments and ultimately vaccine research.

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