How Frequent Fliers Might Be Affected By Airline Merger

by Chris Owen on
Speculation seems to be running rampant about potential losses to frequent flier accounts via the merger of American Airlines with US Airways. A new study recently analyzed American Airlines AAdvantage program and US Airways Dividend Miles program and found several pros and cons, many depending on which airline’s existing program is adopted for both.

Comparing programs, TravelNerd looked at some possible scenarios and came up with some interesting “what if?” results. Not all are bad either. US Airways members would come out ahead, for example, if the combined airline sticks with American’s meal program, enjoying meals on three-hour flights.

That’s good news. Not-so-good news: increased baggage fees could be a result as well. If the American Airlines program is adopted for both airlines, US Airways passengers will have to pay $25 more for three or more bags, and $10-$25 more for overweight bags

Thinking the new alliance means less countries, TravelNerd says US Airways will say goodbye to Star Alliance and join Oneworld, so Dividend Miles members will lose access to 44 countries.On the other hand, I am a member of both loyalty programs and received emails from each saying not to worry and that everything will stay the same. TravelNerd cries foul.

“Airlines are aware that mergers make consumers nervous and will send newsletters to members to ensure that their miles and status are safe,” Amy Lee TraveNerd Senior analyst told me via email. “This is true there are usually no changes in the short term.”

But Lee believes that change is coming and once the merger is complete and has passed government regulations, the streamlining will begin.

“One way they plan to do this is to bring Dividend Miles members into their AAdvantage program,” notes Lee. “In the American Airlines Merger Investor Presentation, they wrote, “US Airways members join AAdvantage, the first and best developed loyalty program in the world.” This implies that they plan to maintain one loyalty program – presumably AAdvantage since American Airlines brand will be taking the helm of this merger.”

Travelnerd points to the United-Continental merger as an example, noting that merger was announced in May 2010 but frequent flier accounts were not linked until March 2012.

More bad news from the study is the notion that more members equals less upgrades. TravelNerd predicts that with a combined total of over 101 million members, frequent fliers will have a tough time upgrading their seats.

Our first thought: Why? Are they going to sell off a bunch of planes? We’ve heard nothing of decreased capacity.

“Regarding upgraded seats, you’re right there are going to be the same number of seats available,” replies Lee. “However, Dividend Miles members currently enjoy many upgrades due to their smaller frequent flier program (30 million members). Once the merger finalizes, the AAdvantage members (71 million members) will make it harder for the Dividend Miles members to enjoy as many upgrades as they currently do because of the increased number of frequent fliers.”

Admittedly, much of what we have here is speculation. But if Merger History 101 tells us anything it’s that change is inevitable. It will be interesting to see how it plays out.

For a closer look at the merger from an unbiased source, we turn to public broadcasting and their sobering view on the topic:




[Photo Credit- Flickr user the queen of subtle]

Bluewaters Island Project Brings World’s Largest Ferris Wheel To Dubai

by Chris Owen on

The last time we talked about the “world’s largest Ferris wheel,” it was in reference to New York’s proposal to build the tallest wheel along the waterfront in Staten Island. At 625 feet tall, the New York Wheel promises to carry 1,400 passengers at a time, be taller than the High Roller wheel planned for the Las Vegas strip and 84 feet taller the Singapore flyer. Now, Dubai has thrown its hat in the ring with a wheel even bigger and taller.

At a planned height of just over 688 feet, the Dubai Eye will be the tallest in the world and part of the $1.5 billion Bluewaters Island entertainment project.

To be built in stages starting this April, the Bluewaters development will include a variety of venues to be built over the next two years. Boasting panoramic views of Dubai’s coastline, the man-made island will also include retail, residential and entertainment zones in a continuing effort by the emirate to promote Dubai tourism.

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”The Dubai Eye will serve as yet another iconic structure and will distinctively dominate the Dubai skyline,” said Abdullah Al Habbai, Chairman of Dubai’s Meraas Holding, a Dubai-based development company in a statement. “We are confident ‘Bluewaters’ will develop into a key attraction for the UAE, further enhancing Dubai’s status as the preferred global entertainment and retail hub.”

Bluewaters will feature an open-air marketplace circled by dining venues, connected to the mainland by a Disney-like monorail system. Where did the name “Blue Waters” come from? Check this quick video to see:


[Photo Credit – Dubai Media Office]

Hong Kong Cruise Terminal To Be In World Class Of Its Own

by Chris Owen on

When Hong Kong‘s Kai Tak cruise terminal opens in June, the nearly quarter-mile long facility will be able to handle the biggest cruise ships in the world. Located at the site of the former Kai Tak International airport runway, the $1 billion terminal will source passengers from a pool of 50 million potential middle-class passengers in the Pearl River Delta provinces of China. The numbers are big, and so are expectations.

“Hong Kong is fully geared up to provide cruises of all sizes,” said James Tien, chairman of the Hong Kong Tourism Board in a Travel Weekly report.

The ability to handle passenger vessels supposedly as large as two, 1,200-foot, Oasis-class cruise ships at a time puts the 985,716 square-foot Kai Tak cruise terminal in a world class of its own. Not even custom-built Terminal 18 at Florida’s Port Everglades (240,000 square feet), home to Royal Caribbean’s Oasis and Allure of the Seas, can do that.

Preparing for 37,000 passengers on 10 ships during the first phase of operation, capacity will double by mid-2014 when the second half of the terminal opens. That’s a huge increase over the old cruise terminal, able to handle just two, 50,000-ton ships at a time.

When complete, Kai Tak will have five passenger bridges, 100 check-in stations and the ability to process 3,000 passengers an hour. Those waiting to board will have no lack of things to do either with close-by local attractions Chi Lin Nunnery and Nan Lian Garden setting the stage for a unique sailing experience.

Think a trip to Hong Kong and maybe a cruise might go well together? Check this video with more details about Hong Kong’s Kai Tak cruise terminal.




[Photo Credit- Hong Kong Tourism Board]

Dubai International Shows Off New Facility

by Chris Owen on

Dubai International Airport (DBX) has just completed the launch of Concourse A, part of a $7.8 billion expansion plan aimed to increase airport capacity to 90 million passengers by 2020. Home to Emirates airline’s Airbus A380, 20 gates have been equipped to handle the airline’s current fleet of 31 planes and with more on order, they’re going to need the space.

“With a current fleet of 31 A380s and a further 59 on order, Emirates is the largest operator of this aircraft in the world, and it is only fitting that we have a world class facility that meets this need and represents our leadership in this regard,” said Tim Clark, President, Emirates Airline in a Breaking Travel News report.

Each of the A380-equipped gates, along with Emirates First and Business class lounges take up 28,000 of the 528,000-square-meter facility. The upscale lounges feature kitchens, conference rooms, business centers, a spa, entertainment areas, smoking areas and children’s play areas. First Class lounge passengers also have a duty free shopping area and a wine cellar.

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Like U.S. airports that have spent billions on expansion and updates, Dubai is looking to the future with a solid plan in place to be a bigger player in international travel.

“Concourse A is a vital element of our $7.8 billion investment in the continued expansion of Dubai International, which will see it become the world’s busiest airport for international passenger traffic by the end of 2015,” said Paul Griffiths, CEO of Dubai Airports.

Want to see more of the new expansion? Check this short video:


[Photo Credit- Dubai Airport]

Cruise Line Takes Sustainability From Sea To Shore, Wins Award

by Chris Owen on

Sustainable Travel International (STI) is a global non-profit charged to help destinations, businesses and travelers protect the environment, adapt to climate change, preserve cultural heritage and more. This week, STI awarded their first-ever, Gold-Level Eco-Certification to a cruise line, honoring Royal Caribbean International for attractions and tour operations at their island in the Bahamas, CocoCay.

Encouraging green travel, STI awards certification for businesses that are engaged in responsible travel practices that focus on economic, socio-cultural and environmental sustainability.

CocoCay is the first operation of its kind to receive the certification, which rates on-island tours, island operations, workplace practices, guest communications and environmental management policies. Rated by an expert third-party, independent of Sustainable Travel International and Royal Caribbean, the CocoCay operation demonstrated an ability to successfully apply its at-sea sustainability initiatives to its on-shore operations.But Royal Caribbean did not just get lucky. Winning the award took a global focus, much like we saw when sailing to their private destination of Labadee in Haiti, just after the major earthquake of a few years ago. Then, Royal Caribbean was self-charged to deliver thousands of pounds of food and supplies to the devastated island, which was also home to resident Royal Caribbean employees who work at Labadee when ships come calling.

“Royal Caribbean developed a very thorough, attainable action plan, designed to implement higher levels of sustainability over time,” said Robert Chappell, Sustainable Travel International’s Senior Director of Standards and Certification in a press release.

Will more cruise lines follow Royal Caribbean and work to get their own private islands certified green and sustainable? Probably. Other cruise lines as well have been working to make a green impact. By recycling cooking oil used on ships as fuel for vehicles on Castaway Cay, Disney Cruise Line is making a difference.

Princess Cruises shore power program made history debuting in environmentally sensitive Juneau, Alaska, in 2001, expanding to Seattle in 2005, and then to Vancouver in 2009. Currently nine of the line’s ships have the capability to “plug in” to a shore-side power source, representing an investment for Princess of nearly $7 million in equipment.

“I’m excited to see them expand their action plan while developing innovative new solutions that are leading the way in the cruise industry,” added Chappell.

STEP is among the first global standards to be formally recognized by the Global Sustainable Tourism Council and Royal Caribbean’s CocoCay is the first cruise line private island to receive the certification.

Want to know more about Sustainable Travel International? Check this video:



[Photo Credit – Flickr user kuddlyteddybear2004]