American Airlines is the one to watch in 2010

by Tom Johansmeyer on

Could 2010 be the year for American Airlines?

Well, it’s hard not to see the light at the end of the tunnel after a decade of unusual airline severity. The market was shaken several times by terror attempts – including the attacks of 9/11 – economic pressures from the dotcom meltdown and the recent financial sector only made matters worse. Energy prices hit some peaks along the way, which, according to Joseph Lazzaro of our sister site, BloggingStocks, determines the fate of the U.S. airline sector.

But, AA in particular? The guys with the flight attendant who through a nutter over orange juice?

The stock is up 90% since June. To most travelers, this is not just irrelevant, but boring … until you think about how these matters can impact your experience on an airline. When a company is profitable, it has an easier time serving its customers. And, employees tend to relax a little bit, as profits and stock prices tend to be good signs that jobs won’t be disappearing (at least not in large amounts).Also, I use stock price as a proxy for intangibles, like brand strength, customer loyalty and other factors that are hard to quantify. At the end of the day, the price determined by investors takes all this stuff into account, giving customers and passengers a feel for how the airline is likely to treat it.

So, cast aside the recent high-profile debacles of this airline, including its recent runway faux pas in in Kingston, and think to the future. After all, everyone’s screwed up. United has its guitar-playing victim, and Northwest (and, as a result, Delta) watched a plane overshoot a destination. In a business where every player is scraping the bottom of the barrel, American may rise above, even if only slightly.

Early Christmas gift from the airlines – no advance purchase surcharges

by Scott Carmichael on

After several years of adding additional fees and rules to our tickets, the airlines are finally giving us something back for the Holiday season.

Seven of the major carriers (American Airlines, United, Delta, Northwest, US Airways, Frontier, AirTran and Midwest) announced that they would waive all advance purchase rules for tickets between today and January 4th 2010.

What this means to last minute travelers is that an $1800 ticket will be about $1500 cheaper when purchased for same day travel.

Of course, the airlines wouldn’t be the the money makers we know them to be, without a bunch of restrictions on their sales:

The cheapest tickets are available on Dec. 16, 17, 25 and Jan. 1 and 4

The second cheapest level airfares are about 30% higher than the lowest fares. Travel for this level is valid on December 18, 20, 21, 24, 30 and 31.

The third cheapest level is about 55% higher than the lowest fares. Travel dates will be December 19, 22, 23, 26, 28 and 29.

December 27 and January 2 and 3 have not been included in the holiday fare sale – and those tickets could end up being substantially more expensive.

(Source: USA Today / Bestfares.com)

Bottom line is that even though the airlines appear to be the good guys, their complicated fare structure could end up costing passengers more. Travelers tend to book flights for the holiday season in advance, so removing last minute purchase rules really only benefits those that suddenly decide to go somewhere for Christmas or who run into sudden changes that require a last minute ticket purchase.

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Holiday travel to fall 2.5 percent

by Tom Johansmeyer on

The airports may not be as crowded at Christmas this year. The Air Transport Association of America expects holiday flight traffic to fall 2.5 percent from 2008. The holiday period is measured as December 17, 2009 through January 6, 2010. The busiest days in the sky are most likely to be the Sunday, Monday and Tuesday after Christmas.

Don’t expect to have plenty of legroom, though. Part of the decline stems from the fact that airlines have cut flights, so fewer people may be jockeying for fewer seats, leaving you just as cramped as usual. Both the dip in the number of passengers and in the number of flights is a direct result of a recession that has had a magnified effect on the travel market this year.

Last week, Delta, American and United all came out and said that they’re seeing an increase in demand — and from those high-value corporate clients that keep the planes in the air.

Last minute flights may be cheaper than the bus

by Jamie Rhein on

Searching for travel deals feels like playing a game show where how to get a winning number is unclear. It’s like hunting in a jungle where the frequent hunter has the edge. Timing remains the wild card.

Being flexible and not assuming the outcomes makes the difference between snagging a deal or paying more than you feel happy paying. The one that makes you whine.

Case in point: A friend of mine bought a round-trip ticket to New York City from Columbus for $240 two weeks ago for a trip next week. He smacked his forehead when I told him I bought a ticket last Saturday for $138 total. My trip is tomorrow.

The price surprised me as well. Before buying a bus ticket, expecting Greyhound would be much cheaper since it usually is, I searched plane fares last Friday “just in case.” Surprise, surprise.

But, I also learned–again– the importance of not hesitating. I waited until Saturday to buy the ticket while ironing out life’s logistics, thus missed out on the flight I wanted. Delta’s prices had almost doubled.

Another search found the $138 price on American. The hesitation, though, means flying out at 5:40 in the morning. Blech! Still, the less than two hour plane ride is $30 cheaper than the 14 hour bus ride. Factor in the cost of the bus from LaGuardia into Grand Central Station and I’m still $8 ahead.

While hunting for your own deal, keep the following points in mind.

  • Don’t assume you know prices before you check. You may be surprised.
  • The more often you check prices, the more you’ll know what is a price you’re willing to pay. (This is my 6th trip to NYC since June. This is the 2nd time I’ve flown. The bus has been the best option three times and two weeks ago we drove.)
  • When you see a price you want, don’t waffle. Your life can adjust to the decision you’ve made. (The beauty of bus travel is that it’s more flexible than flying.)
  • Don’t pay too much attention to headlines that talk about the price of travel. In the travel business, so much depends upon timing. What’s true in the morning could have shifted by the afternoon. Keep looking. Hunt out every corner of options and stay flexible.
  • If you’re flying to New York City, the airport you fly into can make a difference into the cost of a flight. Pick the option that checks the price of all NYC airports. Once you know which airline has the cheapest price, book your ticket through that airline.

Good luck hunting out the best travel deal for you. It could be the bus.

Airline secret societies

by Tom Johansmeyer on

There’s a special type of membership level, but the airlines don’t want you to know about it … unless you’re dropping an easy $50,000 a year on full fare tickets with the same airline. The topic, which comes up from time to time, is in the headlines again thanks to the work of George Clooney and Vera Farmiga in Up in the Air.

American Airlines is mentioned in the flick, but the carrier won’t talk about the subject itself. No details have been released on how to attain these levels of air travel greatness, except the obvious: you need to be a rich frequent traveler or control a company where a lot of people are on the road all the time. The perks of this secret society include fantastic upgrades, bat-phones to experienced agents who answer on the first ring, priority check-in, lounge access and airport escorts when you’re layover’s about to go under. Simply, it translates to real customer service, a rarity in this industry.

Status has become a commodity, with double miles bonuses and other tricks helping frequent flyers amp up their accounts faster, a side-effect of airlines looking to make their passengers as loyal as possible. Because of this, anyone who wants to be a real player — e.g., American’s ConciergeKey, Continental‘s Chairman’s Circle and United‘s Global Services — will have to pierce the inner circle.

Only 20,000 of United’s 1 million program members were allowed into United’s program, which requires 100,000 miles or 100 segments. Delta is the most secretive, with Executive Partner status, which has been replaced by Diamond Medallion level status, requiring 125,000 qualifying miles or 140 qualifying segments.

Okay, so you can figure out all the basic benefits — just like every other status, only faster and bigger and bitter. And then, it isn’t hard to let your mind wander to such upsides as confirming upgrades 120 hours in advance (instead of 100 hours). But, this only scratches the surface. Forrester Research reveals that airlines know which planes have the greatest VIP density and use this to assign gate priority. A Continental passenger and Chairman’s Circle member — who took more than 300 flights and traveled more than 400,000 miles (no bonus miles tucked in there) — was able to finagle some time on an MD-80 slight simulator, because the airline values his business.

See, it is possible to get some love from the airlines. You just have to be ready to spend an absolute fortune … and make the airline need you.

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