The Frequent Flyer Trap

Back in the day, earning and redeeming frequent flyer points was a straight forward thing.  No games, no gimmicks and an easy to understand set of goals.  Fast forward to 2013 and next year and a monster has been created.  Airlines, hotels, car rentals, credit card companies and even florists have jumped in on the mileage lure.  Almost anyone that carries plastic is suddenly eligible for mileage awards.  Status became the next big thing as airlines created the tiers that separated the masses.  Hundreds of billions of miles are being accumulated and hoarded.

Now that the masses are in, airlines quietly move the goal posts every year.  2014 promises to be one that miles are significantly devalued.  With reduced capacity and more limited seats, mileage redemptions keep getting more difficult with many far more restrictions and multitude of fees.  It takes more miles to fly anywhere.  To achieve status, airlines will be measuring the dollars you spend doing so rather than the miles you fly.  While some of these changes are necessary, airlines might be killing the goose that lays the golden egg.  More consumers are realizing that loyalty comes with cost and that the reward may not be worth the price.  We might be reaching a tipping point if the airlines continue to demand more and offer less. www.premieretravel.com

Predictable: USAirways Leaving Star Alliance

 

After sealing the merger between USAirways and American Airlines on Monday, USAirways announced that it will be leaving the Star Alliance effective March 31, 2014.  For travelers, this means that they will no longer be able to book USAirways flights as United code share or vice versa.  Flight schedules will no longer show availability and passengers can continue to accumulate and  redeem their mileage through that date.

It is only the beginning for the new American Airlines which will have to integrate two different cultures and philosophies.  www.premieretravel.com

Airlines Hike Frequent Flyer Award Levels-Again

Starting early 2014, many airlines are hiking the miles needed to redeem flight awards.  The biggest jumps will be redemptions made on "partner" airlines to international destinations.  Business class redemptions will experience the most significant increase.  Savvy travelers are well advised to plan ahead and redeem now before the hikes take effect.

With so many ways to earn miles mostly through credit card purchases, there will be more competition to score seats on flights.  Airlines continue to prune capacity and restrict the number of seats available for frequent flyer redemptions. www.premieretravel.com

Affordable Air Act = Obama Air?

Should the government be more involved in air travel? The feeble attempt by the department of Justice to block the merger of USAirways and American ended with a whimper with the DOJ caving to 99.7% of what the airlines set out to do.  After saying repeatedly that this merger would harm competition, increase prices and limit choices, the airlines finally threw a bone at the DOJ resulting in settlement.  Many believe that the airlines are having their way with the traveler, increasing fares, adding fees, limiting services and changing rules to suit them.  Airlines have collected tens of billions in fees, and are logging profits in billions.  All airline stocks are doing extremely well.  So with less competition, who is looking out for the best interest of the traveler? Now we know that the DOJ and DOT are not, fasten your seat belts.  By the way, if you do like your airline program, you can keep it.  Period! www.premieretravel.com

DOJ Caves In for Merger

USAirways and American Airlines received the "all clear" from the DOJ to proceed with their merger that was blocked and pending trial later this month.  The settlement resulted in minimal concessions in what is considered to be a complete victory for the carriers.  As a result, few airport slots primarily at Reagan National and LaGuardia will be surrendered by the combined carrier.  However, as the airlines have threatened, service to/from some smaller airports will be reduced or discontinued and the carriers will get to keep all their profitable routes.  After the DOJ moved to block the proposed merger, the carriers mounted a furious campaign suing the Department of Justice and implemented a full court press lobbying offensive that resulted in an outcome that surprised most observers who expected the DOJ to extract far more concessions.  "Low cost carriers" will be in line for the vacated slots.  Southwest and Jetblue will be eager to pick up the slack.  Fare differences between "low cost" and legacy carriers have been shrinking over the past 3 years and in some cases the low costs have been matching legacy carriers with comparable fares.  It is unlikely that passengers will benefit, and fares once again are likely to rise with reduced competition. 

Congress Eyeing More "User Fees" on Airlines and Passengers

As the holiday season approaches, Congress is about to be looking for your wallet again.  Without raising taxes, increasing "user fees" on non-constituents has become a favorite sport.   Already facing high assortment of taxes and fees, more is being rolled out that the airlines will reluctantly pass through to the travelers.  Those are purportedly called "airline security fees".  Yes, to support your friendly TSA, more revenue will be required.  The percentage of taxes and fees of the total fare is about to reach a new high.  www.premieretravel.com 

United Airlines Launching Double Miles Special Promotion

October 22, 2013

United today announced a month-long special offer giving MileagePlus members the opportunity to earn unlimited double-award miles on United and United Express flight segments.

 

Members may earn double miles for certain fare classes when they book between October 21 and November 21, 2013, for travel within the U.S. - excluding Alaska and Hawaii. The offer includes domestic segments within international itineraries. To earn double miles, MileagePlus members must also register for the promotion and complete their travel between October 21 and November 21, 2013.  

To register for the double-miles offer and find terms and conditions, customers may go to www.united.com/promoregistration and simply enter promotion code TB2M06 and their MileagePlus account number. www.premieretravel.com
 

Another Day, Another 787 Incident

A fuselage panel on an Air India Boeing 787 fell off while in midair late Saturday during a domestic flight between Delhi and Bangalore.  The flight crew were not even aware of what happened until the plane made a safe landing.  Boeing is in the process of retrieving the fallen panel to figure out what happened.  Many airlines continue to express frustrations with the reliability of the dreamliner. www.premieretravel.com

Club Lounges: Worth the Price?

More airlines are trying to squeeze more "premium" and "non-premium" passengers into their crowded airport lounges. Passengers are starting to complain about reduced offerings, over-crowded places, and unfriendly attendants. Lounges are no longer reserved for the elite travelers seeking respite and peace while waiting for their flights. Recent visits by author witnessed several loud mobile phone conversations by travelers who were oblivious to their surroundings. Overwhelmed lounge attendants either were unable or unwilling to clean up tables and counters.
Airlines have discovered that lounges can be an additional source of revenue. Credit card holders of the airline brands now have access to these lounges. In addition, airlines sell "memberships" and "one-day passes" to their club lounges, many of which are shared by multiple airlines resulting in additional overcrowding. Platicware, styrofoam and paper plates are now quite common in many lounges. How is your experience with these "clubs"?www.premieretravel.com

FAA Rules To Become Slightly Less Antiquated

From the same people that still believe the majority of us do not know how to fasten our seat belts, now comes the news that certain use of electronic devices will be allowed during takeoffs and landings.

For the longest time, the experts who run the FAA believed that anything that has "an on/off switch" must be turned off.  Never mind that there is no scientific evidence that the "On" devices have no impact on flight operations, and the fact that a significant percentage of travelers either forget to turn their devices off or simply put them in "Airplane mode".  The best part about this potential new rule is that passengers will have one less instruction to listen to before takeoff.  FAA must have finally concluded that with tens of millions of devices that remained on during takeoffs and landings, and the even larger number of devices that are on within proximity of gates and runways, airplanes managed to take off, fly and land safely without a single incident.  While mobile phone conversations should continue to be prohibited, all other uses should be allowed. www.premieretravel.com

Call for Rally in Favor of Airline Merger Attracts 300

Union members of USAirways and American Airlines called for a "rally" that attracted about 300, mostly union members of both airlines to demonstrate their "grassroot" support for the merger and to urge the Department of Justice to drop its opposition to the merger.

The sides will appear in court in November to argue the lawsuit brought by the carriers against the DOJ.  The airlines contend that DOJ granted previous airline mergers, so therefore, they should also approve this one.

It is notable that the carriers insisted on keeping all their slots at Reagan National (71% of the slots) and threatened to cut off services to/from smaller airports if they were forced to give up slots.

A United Bonus Worth Checking

United Begins Three-Day Promotion Offering Big Bonus to MileagePlus Members   United today launched a three-day promotion offering MileagePlus members a bonus of up to 60 percent on award miles purchased between September 3 - 5, 2013.   The promotion is a chance for MileagePlus members to maximize their bonus opportunities by spreading the word to family and friends.   By going to united.com/peoplepower to purchase miles, MileagePlus members can share the promotion through social media channels and view the progress of the bonus. Each participating member will receive a minimum 30 percent bonus on award miles purchased through the promotion. The bonus will increase to as much as 60 percent if there are more than 1,500 qualifying transactions.     Promotion terms and conditions are available at united.com/peoplepower. Participating MileagePlus members must purchase at least 5,000 award miles.

 

New Travel Warnings Likely Due to Possible Action in Syria

The U.S. State Department will most certainly be updating its travel warnings based on imminent action against Syria.

In past conflicts such warnings came after the fact.  U.S. citizens and travelers are well advised to be prepared to alter plans based on what might happen in the next few days. 

From the State Department website:
Travel Warnings are issued when long-term, protracted conditions that make a country dangerous or unstable lead the State Department to recommend that Americans avoid or consider the risk of travel to that country. A Travel Warning is also issued when the U.S. Government's ability to assist American citizens is constrained due to the closure of an embassy or consulate or because of a drawdown of its staff. The countries listed below meet those criteria:
Algeria 08/23/2013
Afghanistan 08/23/2013
Egypt 08/15/2013
Haiti 08/13/2013
El Salvador 08/09/2013
Pakistan 08/09/2013
Yemen 08/06/2013
Saudi Arabia 07/25/2013
Mali 07/18/2013
Niger 07/15/2013
Mexico 07/12/2013
Philippines 07/05/2013
Kenya 07/05/2013
Somalia 06/21/2013
Israel, the West Bank and Gaza 06/19/2013
Honduras 06/17/2013
Chad 06/11/2013
Libya 06/07/2013
Nigeria 06/03/2013
Iran 05/24/2013
Mauritania 05/21/2013
Cote d'Ivoire 05/16/2013
Eritrea 05/10/2013
Central African Republic 05/10/2013
Congo, Democratic Republic of the 04/24/2013
Burundi 04/22/2013
Sudan 04/16/2013
Colombia 04/11/2013
Lebanon 04/01/2013
Republic of South Sudan 03/29/2013
Korea, Democratic People's Republic of 03/14/2013
Guinea 03/14/2013
Tunisia 03/13/2013
Syria 03/01/2013
Iraq 02/25/2013

American's Exit From Bankruptcy Delayed

At U.S. Bankruptcy Court today, judge Sean Lane withheld approval of American Airlines' plan to exit from bankruptcy in light of the challenge that the Department of Justice did earlier this week blocking the merger with USAirways.

Judge Lane said he has "lingering doubts" about the viability of the plan that is highly contingent on a merger that is in serious trouble. www.premieretravel.com

Justice Department Blocks USAirways-American Proposed Merger

In a surprise move, the U.S. Department of Justice filed suit to block the merger between American and USAirways on grounds that the combined carriers would reduce competition and result in higher fares.

The combined carriers have refused to surrender slots at Reagan National Airport and threatened to cut services to smaller airport if Justice forced the surrender of slots. 

The intransigence of Doug Parker, CEO of USAirways and the expected CEO of the combined carrier has obviously backfired and the proposed merger is in serious trouble unless the merged carriers will agree to give up some slots and address major anti-competitive concerns. The expectation of USAirways/American was for the Department of Justice and Transportation to rubberstamp whatever deal these two carriers put on the table.  That did not fly.

Update:
The parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that they intend to mount a "vigorous and strong defense" to the U.S. Department of Justice's ("DOJ") effort to block their proposed merger.
www.premieretravel.com

Jetblue's Upmarket Gambit

Jetblue is having an identity crisis.  The carrier which had a successful launch in 2000 is having a mid-life crisis.  It wants to be all things to all people.  Jetblue came into being as a discount carrier that provided unheard of amenities at the time such as live feed of direcTV, leather seats and excellent service, all at a discount.

Over the years, Jetblue started its rapid expansion and now flies to/from Caribbean destinations and have competed head on with legacy and deep discount carriers. 

In a major departure from its initial core, now Jetblue plans to add premium seats to its transcontinental routes once again positioning itself to compete head-on with the legacies (United, American, Delta).  Jetblue mistakenly thinks that the legacies are charging an average of $4,000 or more for the first class seats.  The reality is that those legacy carriers have very potent frequent flyer programs enabling their elite travelers to upgrade to business and first class.  Only a small percentage of travelers actually pay the "suggested retail" of $4,000 plus.  It is also doubtful that travelers want to pay for sleeper lie flat seats. 

www.premieretravel.com

Bailing Out on Spirit

It looks like the airline that brought us all these crass commercials and promotions is losing a top investor, the chairman of the board and a director who are selling out of Spirit Airlines and investing in Frontier Airlines. 

Known for its condescending attitude towards its travelers, and sky high service fees, Spirit Airlines managed to cross the line few times with splashy promotions such as "Many Islands Low fares" AKA "M.I.L.F." and "Check out the oil on our beaches" with suggestive photos.

That Plane is Smoking Hot

Advanced design, sleek, ultra-modern, fuel efficient, singed wires?  Overheated emergency beacons?What else could go wrong with the "dreamliner"?

After being grounded many months for battery-related issues, wiring is the new problem for many airlines flying the 787's.  Qatar Airways grounded a plane last Sunday due to smoke at Doha Airport.
Many other recent incidents led to several delays, more groundings and emergency landings.

Boeing should perform a top to bottom comprehensive safety re-evaluation on the state of the art aircraft before we see smoke coming out of the ears of airline CEO's who are beginning to lose patience with this aircraft.
www.premieretravel.com

British Airways Tagged by DOT

British Airways agreed to pay a penalty for deceptive practices on its website.  Passengers who tried to prepay baggage fees at a discount received a "system not responding" message.  The impacted passengers had purchased their tickets through travel agents and third parties.  British Airways was charged with unfair and deceptive practices and agreed to pay a fine of $40,000 and refrain from repeat practices. www.premieretravel.com

TSA Expands TSA Pre✓™

The Transportation Security Administration (TSA) has announced plans to expand eligibility and use of theTSA Pre✓™ program which will allow U.S. citizens the opportunity to apply for expedited screening without a passport.
When available, the application will be a two-step process:
This is a step in the right direction for TSA that should help travelers an screening expedited process.

1. Fill out an online application.
2. Verify identity and provide fingerprints at a TSA Pre✓™ enrollment center.

Applicants may pay the anticipated $85 enrollment fee online, or at an enrollment center. There is a five-year term of eligibility, after which members will need to re-apply. TSA expects the vetting process to take approximately 2-3 weeks. A U.S. passport is not required to enroll. The first two enrollment locations, Washington Dulles International Airport (IAD) and Indianapolis International Airport (IND), will open in fall 2013 with plans to expand to additional enrollment sites nationwide.

Applicants receive a confirmation letter via U.S. mail. Approved applicants are issued a ‘Known Traveler Number’ to be used when booking travel. Passengers enter their Known Traveler Number (KTN) in the ‘Known Traveler Field’ when booking their travel reservations. Passengers may also enter their KTN to their frequent flyer airline profiles, where it is stored for future reservations.

Current TSA Pre✓™ participants, including those eligible via a CBP Trusted Traveler Program such as Global Entry, will continue to receive TSA Pre✓™ eligibility. Participants who opted-in through their airline frequent flyer program may want to consider applying for TSA Pre✓™, as they are more likely to be selected for TSA Pre✓™ expedited screening more often if they are vetted via the TSA Pre✓™ application process.

 

American-USAirways Merger Hits a Bump

The U.S. Department of Justice has stepped in to probe the pending merger between American and USAirways on some antitrust issues.  Depositions will be taken for this investigation.  At issue is the projected dominance of the combined carriers at Washington Reagan National Airport.  The combined carrier will control more than 70% of the slots.  In an off-handed swipe, Doug Parker, the CEO of USAirways alluded that any forced cuts in capacity will mean less service to some of our Congressmen's and Congresswomen's hometowns. www.premieretravel.com

Delta On the Verge of Heathrow Expansion

Delta Airlines will unveil its much anticipated major splash into London Heathrow Airport, having cleared the EU hurdle for joint venture and code share with Virgin Atlantic.  Effective June 29, both carriers will be able to cross-sell code share seats making Delta and the Sky Team a major player at the world's busiest international airport.
The immediate impact will be the JFK-London route long dominated by American and British Airways will now have to contend with major competition from Delta and the new state of the art terminal at JFK.  Code share flights on Delta can be booked effective June 29 for travel July 3 and beyond. www.premieretravel.com

United Ties Dollars Spent to Status

United Airlines unveiled today a revised mileage program to take effect on January 1, 2014 that will alter the way MileagePlus Premier Status is counted. 

Overview of these changes:

 

• Starting in January 2014, Premier qualification requirements will include a minimum annual spending level that will be tracked with Premier Qualifying Dollars (PQD): dollars spent on most United tickets, including partner flights, and Economy Plus purchases
• Premier Qualifying Miles (PQM) and Premier Qualifying Segments (PQS) are not affected by this program change. These changes apply to 2014 qualifying activity for 2015 status.
• 2013 qualifying activity will not be affected.
   

Please see chart below for the new guidelines

 

You will earn Premier qualifying dollars (PQD) on most:  Flights operated by United, United Express, or Copa Airlines Flights operated by a Star Alliance or a MileagePlus partner airline and issued on a United ticket (ticket number starting with 016) Economy Plus purchases  An important note about tickets:   Members will not earn PQD on certain specialty tickets, including but not limited to unpublished, consolidator, group/tour, and opaque fares. PQD will be credited on tickets starting with 016. There will be situations where members purchasing other airline tickets, such as Lufthansa, will earn PQM and PQS but no PQD. To ensure that members earn PQD credit, travel agencies should ensure that they use 016 tickets, as appropriate.    For 2014, the PQD requirement is waived for Premier Silver, Premier Gold, and Premier Platinum qualification for members whose address with MileagePlus is within the 50 United States or the District of Columbia and who spend at least $25,000 in Net Purchases in 2014 on a MileagePlus co-branded credit card issued by Chase Bank USA, N.A. There is no PQD waiver for Premier 1K qualification.   www.premieretravel.com

Trending: Less legroom on American Airlines

American Airlines announced in a "Town Hall" meeting in Ft. Worth that it plans to add more seats to two of its main-stay aircrafts, the 737's and MD-80's.

While the number of extra rows or seats was not disclosed, passengers can certainly count on more crammed airplanes and less legroom.  The American spokesperson indicated that passengers may still purchase the "Main Cabin Extra" seats that provide more legroom.  Translation: Be prepared to shell more money to get the legroom space that you are already getting today for free.

www.premieretravel.com

Priority Boarding For All....

With so many offers and promises being dangled by the airlines for membership purchases, credit cards, mileage status, and upgrades, promising priority boarding among other things, this boondoggle will end up being watered down as most passengers cannot all be "priority boarded".  Airlines are stretching the limits of their capabilities with promises that they cannot keep to their most loyal travelers by continuously adding new groups of travelers and even non traditional travelers to compete for a fixed number of amenities.  On a recent flight, about half the plane was eligible for priority boarding when the "Explorer" card holders were called along with the elite mileage holders, and military personnel in uniform among other eligible groups.  We might get to a saturation point if we are not there already. www.premieretravel.com

Subscribing to United Airlines' New Programs

United Airlines launched an Annual "Subscriptions" for Economy Plus, Baggage and United Club.

Essentially, travelers can choose one, two or all 3 programs for a minimum set fee that prepays for upgraded seats, free baggage or United Club Access by paying the fees annually.

While the approach is novel and unique, passengers are advised to evaluate the offers cautiously before subscribing.  The baggage proposal is straight-forward but the Economy Plus seating is not.  By purchasing the subscription, passengers are not guaranteed Economy Plus seating since it may not be available for the desired flights.

More travelers will be clamoring and competing for upgrades and United Club Access.  Both offerings will increase the demand and strain on finite resources.  Expect to see "sold-out" Economy Plus seatings and over-flowing United Club lounges.  United and other carriers are also promoting some of the same privileges they are selling as "subscriptions" to the Explorer credit card holders. who now number in the tens of thousands.  Hopefully, United will expand existing lounges, add more, and increase Economy Plus seating capacity.
www.premieretravel.com

Mishaps Of the Seas...

No, not a new ship's name, but it seems appropriate given the sudden spike of problems facing big box ships that cater to the masses.

It was inevitable that the intense competition among the cruise lines would lead to these incidents.  Cruise lines asking for bigger ships built with elaborate amenities, electronics, facilities and capacity all while squeezing costs and pushing the envelop on safety.  These behemoths roaming the seas may continue to experience episodes such as the one that afflicted Carnival Cruise Lines and the "Grandeur of the Seas" over this past weekend. 

While airlines and manfacturers face very rigorous design safety standards, cruise lines and their builders really don't. www.premieretravel.com

TSA Pre Printed on Boarding Passes Goes International

TSA Pre✓™ Expands Expedited Screening Benefits for International Travel

 

WASHINGTON – The Transportation Security Administration (TSA) announced today that beginning May 7, 2013, in addition to domestic travel, TSA Pre✓™ participants will be eligible for expedited screening on select international travel itineraries. Eligible passengers traveling on Alaska Airlines, American Airlines, Delta Air Lines, United Airlines and US Airways will be allowed to leave on their shoes, light outerwear and belt, keep their laptop in its case, and their 3-1-1 compliant liquids/gels bag in a carry-on.

Passengers flying internationally from the 40 participating TSA Pre✓™ airports may be eligible to receive expedited screening. In addition, passengers with connecting domestic flights who arrive in the United States on an international flight may use the TSA Pre✓™ lanes when going through the screening process at participating airports after being cleared by U.S. Customs and Border Protection (CBP).

“By expanding TSA Pre✓™ beyond domestic air travel, we are further demonstrating our commitment to identifying innovative ways to securely move travelers more quickly through our airports,” said TSA Administrator John S. Pistole. “Through TSA Pre✓™, TSA can quickly process passengers who we know more about. This allows us to focus more of our time on those passengers about whom we know less.”
www.premieretravel.com

Limited-Time United Business Class Discounts

 

At these prices, BusinessFirst isn’t just for business anymore                 Get special low fares to Europe in United BusinessFirst This summer, we're lowering fares on our premium-cabin service to United destinations in Europe from the U.S. Take advantage of this limited-time fare sale and experience the extra space, comfort and personalized service of United BusinessFirst® at significant savings. Choose from London, Paris, Rome, Dublin, Geneva or anywhere we fly in Europe.         Hurry – book your roundtrip ticket by 11:59 p.m. (CT) on July 2, 2013, and travel between June 28 and September 5, 2013. www.premieretravel.com     Book now

United "Adjusts" Change and Cancelation Fee Policy

It has been almost 3 weeks since United silently increased the Change and Cancelation fee which was eventually matched by all the legacy carriers.  Travel management companies and travelers have never been notified of this critical change until today.  So finally, the announcement:

May 15, 2013   United Adjusts Change and Cancelation Fee Policy   United has increased the change and cancelation fees for most non-refundable tickets issued on or after May 15, 2013 for the markets indicated below.    Markets       From To New* Previous Caribbean / Central America / Mexico U.S. / Canada 200 150 South America U.S. / Canada 300 250 U.S. / Canada / Caribbean / Latin / U.S. Virgin Islands Pacific 300 250 U.S. Atlantic 300 250 Caribbean / Central America / Mexico / U.S. Virgin Islands Atlantic 250 - 300 175 - 250 South America Atlantic 300 175 - 250   *The examples above are for most economy class bookings and some fee exceptions may apply. For complete information and additional detail on premium cabins, please see the fare rules of the ticket. Tickets issued prior to May 15, 2013 will follow the fare rules that applied at the time of ticket purchase.   United offers a range of fare types, including select booking classes that allow for changes at no additional charge. MileagePlus Premier® Gold, Premier Platinum and Premier 1K® members may request fee-waived same-day flight changes.       united.com   United Air Lines, Inc. | 233 S. Wacker Drive | Chicago, IL 60606   You are receiving this email because you selected to be notified with news from United Air Lines, Inc. or have an existing business relationship with United. If you wish to no longer receive updates of this kind, please unsubscribe using the link below. The mailbox from which this email is sent is not monitored.