Delta announces new Elite Elite status, loyal passengers retch

by Grant Martin on

It’s difficult making both parties happy during a merger, especially when the old dogs in one way of life have to learn all of the new tricks in another. Where this appears to be particularly scathing is in the frequent flyer programs, where loyal passengers to both Worldperks (Northwest) and Skymiles (Delta) are starting to get mashed together.

To appease some of the most frequent Skyteam travelers, the new Delta has revealed a new elite status above the traditional Silver (25k miles,) Gold (50k,) and Platinum (75k.) No, it’s not Berkelium, it’s Diamond, and one has to travel a whopping 125k miles to reach this holiest of statuses.

Benefits to Diamond status include free access to the Delta Sky Clubs (airport lounges,) better flexibiliy when using award tickets and a wider selection of “Choice Benefits” including upgrades and gift cards.

The problem for many current elites is that the benefits are too sparse for the time invested. Flexibility with award ticket redeposits, for example, is a feature that many Northwest passengers had before the airlines started to merge. Similarly, the mileage bonus on flights for a Diamond versus a Platinum (125% vs 100%) is just a throwback to the former NW Platinum level.

Upgrades are another great example. The upgrades currently earned by Platnium and Diamond members are only useable on the most expensive group of economy tickets (thumbnail: you’ll have to spend $1500 on a coach ticket to Europe to be able to upgrade.) Other programs sponsored by United and American Airlines let passengers upgrade some of the least expensive fares (say, around $700.)

As a result of the tepid benefits, more loyal passengers are straying away from the new merged airline. Or as one passenger at Flyertalk puts it:: “Delta: Driving Every Loyal Traveler Away.”

Good move by United Airlines – last minute award redemption fees to be eliminated

by Scott Carmichael on

Effective July 30th, United Airlines is removing the fee for Mileage Plus customers trying to book last minute award travel.

Several years ago, United Airlines added 2 “last minute booking fees” to award trips; within 21 days, the fee was $75, and 7 days or less would cost $100.

Of course, when the fees were introduced, customers were furious, as last minute trips had long been one of the most profitable ways to use miles.

I’ve been on the receiving end of about $400 in these fees, so they already have one customer that is extremely happy to see them go.

A United Airlines spokesperson said that members told them they want “ease, flexibility and availability when using their miles”. That is a nice way of saying that customers were fed up with the fee racket, and want to redeem their miles without it costing them an arm and a leg.

Kudos to United Airlines for this move. As is often within the airline industry, it’ll probably spell the beginning of a similar wave of changes at their competitors, and that is always good for customers.

American Airlines: open your wallet

by Tom Johansmeyer on

When you have to combat a brutal economic downturn, there are few choices. The airlines are cutting costs, cutting seats and looking for new sources of revenue. But, none of this compares to doubling down on the old revenue streams they’ve already devised! Why work so hard trying to come up with new ideas, when you already have old ones? So, get ready for bag-checking to get more expensive on American Airlines.

Your first bag is going to cost $20 for flights purchased after August 13, 2009 – for travel in the United States and territories (oh, and Canada). This is a 33 percent increase from the current $15. If you want to check a second bag, you’ll pay $30 instead of $25, an increase of 20 percent. If you have sufficient status on American, you won’t have to pay a cent for your two checked bags. Business-class and first-class passengers are in the clear, too, along with the proletarians in coach who paid full fares.

Airport closed so plane can’t land

by Jamie Rhein on

Yesterday there were two stories out there about rest stop closings. This story is about an airport, an airplane and a more problematic situation than a rest stop being closed when one is desperate to stop. If a rest stop is closed there are options. The side of the road works in a pinch. In the case of the airplane in a decent towards an airport, but the airport turns out to be closed, there’s a bit more involved.

The pilot needs to quit descending asap and head somewhere else, in an ideal case, somewhere close by. Thankfully, that is what happened when US Airways flight 3203 was about to land at the Charleston, South Carolina airport but found the airport closed. The pilot turned the plane around to head back to where it came–Charlotte, North Carolina.

The airport isn’t closed all the time, but just some of the time–after midnight and only until August 9. Usually, it’s open 24-7. Two runways are getting fixed. A lightning strike had delayed the plane from take off after taxing out to the runway and the pilot knew he wouldn’t have enough time to make it to the airport before the witching hour, but thought the tower would stay open a tad longer. Nope.

Once back in Charlotte after state hopping the Carolinas, the passengers were given rooms, meal vouchers and status as being on a flight with an issue that almost never, if ever, happens. [The Post and Courier]

Airlines run out of services to cut, eye flights

by Tom Johansmeyer on

Cuts aren’t limited to airline employees and passenger amenities. In the next few months, capacity – the number of asses that can be accommodated – will be sliced. Having fewer flights will lower costs and boost the all-important revenue per available seat-mile (RASM) metric. For passengers, the drop in supply is likely to push fares higher and convenience lower (if you’re looking for non-stop flights, you’ll have to look harder).

It’s earnings season – and what happens down on Wall Street will ripple through every airport in the country. Six of the nine top airlines in the United States posted profits for the year – fun! – but they did it on falling sales. What’s that mean for the average traveler? It means airlines have had to cut their way to profits, because they aren’t growing. If passengers aren’t spending as much, all the airlines can do is take away services that cost money. And, with RASM down 19 percent year-over-year for seven U.S. airlines, they have little choice.

If you’ve been on a flight recently, you’ve seen there isn’t much left to cut, which is why airlines are going to be cutting the flights themselves. For the fourth quarter of 2009, total available seat-miles (one person flying one mile on one flight) is expected to fall to 12.4 billion – which is close to post-9/11 levels. Two years earlier (Q4 2007), it was 14.2 billion.

I hope you believe that “getting there is half the fun.” If you do, the decline in non-stop flights won’t bother you as much. Prepare for layovers – lots of ’em. This will help airlines consolidate flights, fill vacancies and boost RASM. But, it also means that you’ll spend a bit more cash at Auntie Anne’s (get some cheese with those pretzels!).

Cutting costs could actually lead to higher prices, which the airlines desperately need – but it means a smaller base of seat-miles on which to make money. Competition will fall on some routes, and overall supply drops – both of which give airlines the power to increase fares. Of course, these really are minor forces compared to broader economic conditions. The ability of customers to pay is ultimately what drives the cost of a ticket, and absent an economic recovery, fares will stay low, as will airline earnings.