Delta to investors: capacity to be cut

by Tom Johansmeyer on

Yesterday, Delta CEO Richard Anderson and President Edward H. Bastian sent a memo to its 70,000 employees announcing passenger capacity cuts. Distributed with the subject line, “Responding to a Worsening Economy,” the memo outlines Delta’s proposed changes that were planned for announcement at an investor conference later the same day.

According to the memo, “In just the few months since we last announced capacity reductions, revenues have weakened, particularly in international markets. Once again, we must move quickly to adjust our capacity and stay in front of demand changes.” So, Delta is getting to trim international passenger capacity by an additional 10 percent – starting in September 2009. Flights across the Atlantic will get hit by 11 percent to 13 percent, with those across the Pacific losing 12 percent to 14 percent beginning this winter.

These cuts come on top of a previous announcement to reduce system-wide passenger capacity by 6 percent to 8 percent by December 2009. Nonetheless, capacity may be up slightly by December, as Delta takes advantage of “targeted growth opportunities through new routes and increased frequencies.”

Your paltry Delta miles aren’t accepted here

by Grant Martin on

If Delta Skymiles could be equated to a currency, they would be Zimbabwean Dollars.

Over the past several months, numerous changes at the Atlanta based company have brought significant detriment to the joint Delta and Northwest frequent flyer program. These modifications range from an increase in mileage fee for economy tickets (tickets to Europe, for example, went from 50K to 60K miles,) application of fees for award bookings (up to $150,) and the reduction of benefits such as free miles redeposits and system wide upgrades.

There are plenty of small annoyances, but what all of these program changes boil down to is a change in the model in which award tickets are exchanged. Formerly, supply of award miles was lower, availability was higher and the top few passengers who earned numerous miles could spend them fairly easily.

Now, supply is higher, availability is lower and the masses all generally have access to a few scrappy seats. The very few extra that are booked are done so at excruciating costs. So as a result, the airline loses less money on award bookings and gives passengers the false sense of reward with useless miles.
No passenger is in a better perspective to observe the change than he who was a Northwest Worldperks member. Over the last six months, that customer watched his counterparts at Delta reap the benefits of numerous mileage bonus offers, virtually dumping miles into the pockets of passengers and severely diluting the mileage pool.

Meanwhile, program changes continue to cut Worldperks down to the level of Skymiles and defectors leave in droves. At a poll on the frequent flyer website Flyertalk, nearly 30% of passengers queried are leaving the conglomerate to join another airline program, another 20% are leaving at year’s end and 20% are too distraught to know what to do.

Out on the underground mileage exchanges, Delta/Northwest miles have lost their value. Most don’t even bother trying to trade, and one passenger trying to exchange Delta miles for an equal number of competitor miles was laughed at. The best offer so far? A few beverage certificates.

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Passengers protest peanuts, prefer pretzels

by Tom Johansmeyer on

Blame Northwest. Or, blame the merger with Delta. Either way, peanuts are back, and some passengers are pissed.

On February 1, Northwest began dishing out peanuts on flights, which Delta has been doing since dirt was new. The timing isn’t all that hot, given a national salmonella outbreak involving Peanut Corporation of America. And then there are the people who are allergic to peanuts … they’re also far from thrilled with the change.

A commenter on the Star Tribune website (local to Minneapolis, where NWA is headquartered) wrote, “Northwest is really out of touch with its customers and the reality of allergies to peanuts.” Another chimed in, “What’s wrong with pretzels?”

Indeed, what is wrong with pretzels?

According to the Centers for Disease Control and Prevention, more than 3 million people in the United States are allergic to peanuts (or tree nuts). Food allergies cause 30,000 cases of anaphylaxis, 2,000 hospitalizations and 150 deaths every year. On its own, this sucks. On a plane, it’s worse than sitting next to a fat person.

Delta is doing what it can to prevent an in-flight disaster, creating a “buffer zone” of three rows in front of and behind a peanut-allergic person’s seat. And, the airline is advising “cabin service to board additional nonpeanut snacks.” So, flight attendants who are busy with such trivial matters as keeping order on the plane and tending to broader safety issues will have to keep track of the “peanut zone,” as well.

[Via CNN]

What strange things have been found on planes?


Too good to be true: $0 fares not for real

by Alison Brick on

Part of me thinks: They should’ve known better.

Then another part thinks: But it was in writing. It’s fair game.

Free fares on Northwest Airlines posted last Thursday were snatched up by happy travelers, then reneged a few days later. The spokesman from Delta Airlines (who bought out Northwest back in October) confirmed that it was an error and said that the only people he would honor would be those customers already in flight. The tickets for everyone else–who started planning their trips around these tickets–would be cancelled.

The fare wasn’t posted on nwa.com or delta.com–just on a few other sites like Travelocity. Most flights affected departed from the Twin Cities.

Does it come as a surprise that something like is already covered in legal print? Northwest’s fare tariff states that it reserves the right to cancel a ticket if it was bought at an erroneous fare. No doubt the airline could use the money and isn’t eager to give away free tickets willy-nilly.

But I still think that as a token of good faith, a customer service-based airline would honor the tickets. It’s easier to keep the good standing of current customers and the friends that they tell, than to gain new customers after these folks have been put off, right?

[Via Today in the Sky]

Spring fever hits early with discounted flights to Europe

by Alison Brick on

Forget the snow, forget the winter. Trade in your down coat for a cardigan, and hot tea for iced tea (in your mind, if nowhere else). It’s time to start thinking about spring.

The springtime sales on European flights have started. American Airlines has a slew of cheapies from the US — including San Francisco-London for $569 (after taxes) and Chicago-Frankfurt for $527 (after taxes). Book your ticket by February 10, and travel outbound by April 2, and inbound by May 2.

American has also extended its companion ticket offer to the UK and the Caribbean for AAdvantage members. Book the qualifying ticket by March 31, then use the 2nd ticket by December 31. It’s not without a little spending, though. The companion flight might be free, but you’ll still have to pay the taxes and fees.

Delta also has discounted Europe flights from either New York City or Atlanta, including JFK-Madrid $454 (after taxes) or Atlanta-Milan $598 (after taxes). Book by February 2, and travel February 2-April 2.

And Travelzoo tips us off to Air France’s New York City-Dublin that’s a mere $328 (after taxes). Travel through April 2.