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