We all have certain fees that travel providers charge which drive us up the wall, usually because they offer an explanation that’s especially absurd. I’m usually bothered by award ‘expedite fees’, a charge that some airlines impose for issuing an electornic award ticket within a certain number of days of travel. I’m similarly bothered by hotel resort fees (just include it in your room rate!) and charges for ticketing at the airport when that’s the only option available, such as issuing an open-jaw award on United for someone with a different last name (since it can’t be done online and if it isn’t, it must be signed for in person). Perhaps the most offensive, albeit small, fee I’ve heard of was recently reported at Flyertalk.com. Apparently American Airlines is now charging $3 to e-mail a…
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The economics of frequent flyer program spinoff
The cover story of the July, 2005 Inside Flyer is on airlines spinning off their frequent flyer programs in public offerings. David Rowell thinks United could be worth $15 billion. Randy Petersen says “greater than $2.5 billion.” According to the piece, airlines sell $3 billion worth of miles annually. United’s spinoff of Mileage Plus into a wholely-owned subsidiary in 2002 was a $1.4 billion transaction. Mileage is clearly a big business: In 2003, ULS accounted for 5 percent of UAL’s 2003 revenues. In 2004, United recognized more than $400 million in revenues related to ULS, which would not reflect the entire business revenue of ULS for that year. In 2000, revenue for third-party mileage sales reached $220 million during the first six months alone. But American AAdvantage is clearly the king of frequent flyer programs,…
Reactivate expired American Airlines miles
Through the end of the year, American is offer AAdvantage members the opportunity to reactivate miles that expired after December 30, 2002. There’s a fee — $50 for every 5000 miles plus $30 for ‘processing’. So really you’re just being allowed to purchase miles at a discount, one cent per mile, but that’s actually a pretty good value. (Hat tip to the MilesLink newsletter.)
When First Class is Really Coach
I don’t usually fly American. With the exception of an American Eagle flight booked as a Northwest codeshare in late 2004, I haven’t been on American metal in nearly two and a half years. And my review is this — American Airlines’ domestic first class can be summed up with a your choice of two words: either “ghetto” or simply “coach.” One three of four flight segments, no pre-departure beverages were served. No coats were taken. The MD80 seats are incredibly worn and dirty. Pen markings are on display everywhere, and on one flight duct tape was holding the meal tray cover onto my seat. The ‘meals’ they’re serving look like the food that used to be offered in coach. And by used to I’m not harkening back to the long-gone days at the beginning…
100 Free American Airlines Miles
Points.com is giving away 15,000 American miles each day, but perhaps more importantly you get 100 miles just for entering. You need to signup for a free Points.com account to enter, or if you’re already a member you can simply sign in for the points. Points.com has unveiled their new interface, and while it appears slick and streamlined there’s no new functionality that I’m going to find personally useful. What’s more, they’ve increased their fees to $10/month for a premium account!
10,000 American Miles for Earthlink Still Available
The standard American Airlines offer for Earthlink internet is 6,000 miles after three invoices. Reader John points out that if you go to Earthlink directly, add internet service to your shopping cart, and enter promo code 1018865 the cart will display 10,000 American Airlines miles which will be awarded after six invoices.
American Mastercard Bonus
The American Airlines Mastercard is again offering no fee for the first year and 15,000 bonus miles with first purchase. Citibank has been known to award the bonus miles even to people that have had the card in the past, despite terms that specify that the bonus can only be earned once. Best practice is to print out the application page which mentions the 15,000 bonus miles and also to print out the terms and conditions which mentions no annual fee for twelve months.
Southwest and American Posturing in Dallas
Arguments over the Wright and Shelby Amendments restricting flights out of Dallas-Love Field are reaching absurd proportions. For years Southwest, which is based at Love Field, has maintained official neutrality to the federal rules which limit flying out of the airport to contiguous states. It took years of litigation for Southwest to even be able to use the airport, which had otherwise been abandoned for the Dallas-Fort Worth facility. I’ve assumed that Southwest’s newfound desire to overturn these restrictions is mostly a matter of posturing. I don’t think Southwest really wants substantial new flying out of Dallas. There’s not much room for expansion out of Love Field. They’re pretty close to maxed out in their existing terminal space. New flights to further away destinations could certainly displace existing flights, and those might well be more…
Double Miles on American
In a move that matches United, American is offering double miles on all flights booked by February 18 for travel through May 25. Registration required.
American Bonus for Premium Class Flights to London
American is offering 42,000 bonus miles for premium class flights to London. The move is very similar to British Airways’ offer of 40,250 bonus miles. Registration is required.