Tag Archives for american.
Back in April I wrote about hidden lounges: airport clubs your membership gets you into but that your airline doesn’t tell you about.
The perfect example of this is The Club at Bluegrass in the Lexington, Kentucky airport can be accessed by any Admirals Club member, United Club member, or Delta Skyclub member.
It turns out there’s an airport lounge that grants access to pretty much everyone’s elites.
American Airlines believes that investing in product, while necessary to keep up, won’t be a sustainable advantage. All airlines can buy the same products. So the real competitive advantage has to be culture.
The airline does a weekly podcast for employees. This week’s episode is about the airline’s Elevate Training.
After each quarterly earnings call American Airlines senior management holds a ‘State of the Airline’ town hall with employees, where employees can ask questions and get answers.
Some of those questions were about American’s decision to become less restrictive (allow full-sized carry on bags) with their basic economy fares, and the mechanics contract (an issue that never seems to get resolved). However there were several items of broader interest to customers or that offered new insights as well,
It’s difficult to see how United can stand alone, though, with the most draconian restrictions among the largest US airlines. With Delta’s claim that American and United basic economy were driving revenue to them, and with American abandoning their own carry on restriction, it’s just a matter of time before United must react.
On American’s earnings call this morning the airline tried to get ahead of disappointing financial performance both in absolute terms and relative to its largest competitors by announcing new aircraft deferments (reducing, or pushing into the future, capital expenses) and making other changes to their fleet in order to reduce the amount of product (seats) they sell.
On July 3rd I shared that American was poised to relax the most draconian restriction on their lowest-price Basic Economy fares, once again allowing customers on these lowest fares to bring both a personal item and a full sized carry on bag onto the plane. American refused to comment.
However this change has now been announced in this morning’s earnings release, and points to the failure of the business strategy of making your product worse in hopes of generating more revenue.
It’s been over 3 years since I wrote about American’s ‘Goldilocks Problem’ boarding planes too early (before stated boarding time on boarding passes) and updating customers about delays too late.
I find that American won’t post flight delays until boarding time for an aircraft, even when those delays are blindingly obvious. And they won’t update delays until revised departure times have passed. Even when fuel is spilling onto the tarmac.
Former American Airlines CEO Bob Crandall thinks that the airline industry should never have been deregulated (1978) and the recent round of airline mergers (2008-2013) should never have been allowed.
Crandall is wrong on both counts.
American’s CEO Doug Parker and Delta’s CEO Ed Bastian agreed to sit in coach in the back of a Boeing 777-200 and talk about their coach products.
Loyalty programs are having a hard time delivering cherished upgrades to elites, they’re monetizing premium cabins more than ever before, so what does the future look like for the all-important recognition component of airline elite status?
American Airlines is surveying elites with these questions to help them decide.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
