frequent flyer

Tag Archives for frequent flyer.

When Your Spouse Leaves You Your First Call is.. to the Airline?

united plane docked
Apr 09 2018

Last month when my grandmother passed a different airline did waive part of my change fee (about $80 out of $200) in order to do an ‘even exchange’ when I rebooked to attend the funeral. And I was seated in the back of coach that’s all that was left. Even that little gesture was something.

So it’s really nice when an airline is there for you when the most important people in your life aren’t. That’s what loyalty is all about. Kudos to United.

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Breaking the Value Proposition: a Nail in the Skymiles Coffin

delta-airline-plane
Oct 03 2007

Traditionally frequent flyer miles are redeemed for capacity controlled awards. Airlines offer a limited number of seats for redemption that they expect would otherwise go unsold. And some travelers are frustrated they can’t find the seats. But in general there’s always been the option to spend more miles in order to get any open seat. With United, it’s the “Standard” award rather than “Saver.” With Delta, this higher mileage option has been known as “SkyChoice.” But Delta has announced that as of December 1, spending double the miles no longer gets you any seat. Instead, it just gets you access to more award inventory. Now they’re not the only airline to do this. They’re following Northwest’s lead. But they’re still in the minority. Rulebuster, Standard — or whatever you want to call them — awards…

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Open Enrollment Returns to British Airways Executive Club

british-airways-plane
Jun 01 2007

Nearly four years ago British Airways stopped letting just anyone sign up for their frequent flyer program. Riiff raff, non-full fare paying passengers be gone! They’ve apparently, quietly, reversed course. British Airways is once again letting anyone enroll in their Executive Club program. You no longer need to use this Starwood promo link or similar ones, eg from Diners Club, to sign up for the program.

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So how many miles do YOU have?

delta-airline-plane
Jan 11 2006

Randy Petersen reported some fascinating pieces of data about Delta frequent flyers: The largest current SkyMiles balance is 21,846,145 miles. …Most transoceanic segments in 2005: 61 Most miles flowm: 519,676 I have miles in my accounts. And I’m known to fly occasionally. But I’m a nobody. Nothing. A gnat. No, not even a gnat. Gnats have wings and can fly.

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More Proof Of the Tremendous Economic Value of Frequent Flyer Programs

united-plane
Oct 10 2005

United’s Mileage Plus is such an important economic engine that JP Morgan Chase, which issues United’s co-branded credit card, has been the largest funder of the airline’s bankruptcy. It’s BankOne unit put up hundreds of millions of dollars in debtor-in-possession financing and JP Morgan is putting up a chunk of United’s $3 billion in bankruptcy exit financing. Now a deal to extend the co-branding relationship together with a large pre-purchase of airline miles is taking the place of hundreds of millions of dollars in reserves that United would have to post to its credit card processor (which is majority-owned by JP Morgan). As part of a deal extending United’s co-branding relationship with J. P. Morgan Chase through 2012, the bank agreed to make a “substantial” advance purchase of miles from United, according to an Oct.…

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Frequent Flyer Miles as Debt in Need of Devaluation

britishairways
Jul 26 2005

Tim Harford asks what would be the best way for frequent flyer program to devalue their currency? Last year I explained why a devaluation is inevitable, and why that doesn’t mean you should stop collecting miles. The simplistic version of the problem is too many miles chasing too few seats. Problems have been exascerbated the last couple of years as airlines pulled down capacity. Now, with flights running especially full, getting a nominally free seat can be tough. Award redemption (at least at the usual mileage pricing) is predicated on giving away only those seats that are likely to go unsold. That pot of inventory isn’t growing, but mileages balances are. Given the need for devaluation, how should airlines do it? The first option Harford gives is rejected, but not strongly enough: Airlines could simply…

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