Posted by Marshall Jackson on January 12, 2010 under Ancillary Revenue, Continental Airlines, Delta Air Lines | 
Continental jumped on the $25 dollar party wagon today. Now they join Delta (and USAirways) at the top of the baggage fee pile – $25 bucks for one bag. Both Delta and Continental will knock $2 dollars off the price if you pay online. USAirways is currently discounting the price by a whopping $5 dollars if you pay online. Expect that to last about six more seconds if the rest of the industry continues to jump on this. And I can’t imagine a scenario where they don’t. If they all match, and we all continue to pay, where do you think the next stop on the fee meter is? $30 dollars? Why not $50? Pretty soon the fee for your bags will be more than your fare. Keep in mind that the $25 dollar price point I’m harping on is just for the first bag. Have the unmitigated gall to check a second bag, and you’ll pay $35 dollars for that one.
I can’t emphasize enough that I have no problem with “unbundling” in principle, and that includes baggage fees. However, I think the industry runs the risk of pricing this particular service somewhere well north of what customers are willing to tolerate without some kind of backlash. Will the airlines figure that out before customers have started to vote with their feet? Time will tell.
Posted by Marshall Jackson on December 11, 2009 under Continental Airlines |
I know this has been widely blogged about, but that pesky day job of mine has simply kept me from posting much this week. In short, I’ve been busy! But I wanted to post about the latest news from Continental and OnePass because I think it’s important.
Earlier this week, Continental Airlines announced a couple of key changes to its OnePass elite benefits. First, Continental will begin rewarding its Platinum Elite members who earn at least 100,000 elite qualifying miles or 120 elite qualifying points with 4 systemwide upgrades. These upgrades are confirmable on any fare systemwide.
Additionally, Continental announced the creation of an invitation-only, revenue based “Presidential Platinum Elite” tier. Continental went one step further and published the initial qualification requirements for the new tier which will be $30,000 dollars in annual spend in 2010. Perks of the new super-status include top priority for upgrades and standby as well as a VIP phone line. The status will also include an annual fee waiver on the Continental Presidential Plus MasterCard from Chase. This card includes an annual membership in Continental’s President’s Club.
OnePass members can start earning these new benefits in 2010.
Posted by Marshall Jackson on October 29, 2009 under Commentary / General Info, Continental Airlines |
This has been well covered by many blogs, but I thought I’d add my 2 cents. Continental’s entrance into the Star Alliance is exciting news for many travelers. While we all know that American and AAdvantage are my preferred airline and mileage program, I don’t think I’m stretching things very much when I say that Continental is likely the best managed legacy airline in the United States of America. Continental’s ability to execute on its stated goals are renowned. And for good reason…they almost always deliver on their promises.
Once upon a time, I was Silver Elite in the OnePass program. Amazingly, Continental promised express luggage delivery for their elites on every flight. One hundred percent of the time, they delivered (for me). That, coupled with almost 100 percent personable customer service, made for a pretty good airline experience. No doubt, I liked flying Continental. That said, OnePass just didn’t measure up to American’s AAdvantage in availability and flexibility. Add in the fact that I’ve always had pretty good service on American, and I just couldn’t find a compelling reason to move my travel dollars to Continental.
With their entry into Star Alliance, the world really opens up for Continental OnePass members. Star’s excellent lineup of airline partners along with Continental apparently not blocking award availability on their Star Alliance partners really make Continental an attractive option for travelers.
I’m still committed to American, and AAdvantage, but I plan to follow Continental’s progress as it heads down its new alliance path. Living in Washington, DC, United and US Airways should be logical options for me, but neither airline gives me the confidence I need to commit to a loyalty program relationship. Continental is now a real option, and I will follow them closely. With their entry into the Star Alliance, OnePass has become a reliable loyalty program option for many more travelers.
Posted by Marshall Jackson on October 18, 2009 under Continental Airlines, United Airlines |
You know that American AAdvantage is my preferred mileage program. And you also know that I fly Delta just enough to make that my second program. I’ve historically accumulated my handful of Star Alliance miles into United Mileage Plus. However, Continental’s coming entry into Star has me wondering if that’s the best thing to do. So I’d love to hear what others think. Should I switch my Star Alliance accumulation to Continental? Or should I think about US Airways Dividend Miles? Or continue with United. Share a comment, or send me an email.
Posted by Marshall Jackson on October 12, 2009 under American Airlines, Continental Airlines, Delta Air Lines, JetBlue, Travel Tips, US Airways, United Airlines |
Random post, I know. But I think many less-than-frequent fliers may not be aware that a lot of airlines offer travelers the opportunity to change to an earlier or later flight on their day of travel with a confirmed seat (if available) for a relatively small fee.
Yesterday, I got a later than planned start on my 50 mile drive from my family home in North Carolina to the Raleigh-Durham International Airport (RDU). Faced with the need to make a couple of stops on the way, I knew I was pushing the envelope for making my scheduled 3PM departure. Add in the need to re-fuel and return the rental car, and it became apparent that the math just wasn’t going to work.
I stopped at an I-40 rest area and reached for my iPhone. I first did a quick check of flight availability from RDU to DCA which showed “all 7’s” on later flights. (Note: For those that don’t know, airline availability is displayed from their reservations systems in a series of letters and numbers, i.e. Y7…. meaning there are at least 7 seats left to sell in the “Y” fare bucket.) Then I called American’s Platinum Reservations number. When I reached the agent, I asked if there was “same day confirmed” availability on a later flight to DCA. There was, and the agent confirmed my seat for the flight I wanted. Cost: $50 dollars, which I think is a bargain in the world of airline fees.
I then continued my drive to the airport without worry, and without danger of a speeding ticket. You can read the scoop on American’s same-day flight change options here. Other airlines offer their own similar programs:
Continental
Delta
JetBlue
United
US Airways
Posted by Marshall Jackson on September 12, 2009 under Continental Airlines |
Continental just announced some changes to its OnePass program which help align the program with its future Star Alliance partners. Continental joins Star on October 27, 2009. The most beneficial change from my perspective is that Continental will no longer penalize customers for purchasing discount fare travel through venues other than Continental.com. The changes are summarized below just as they were sent from Continental:
Effective Oct. 1, 2009:
• There will be no same-day change fees for Platinum Elite members for tickets purchased on or after Oct. 1, 2009.
• As a part of our transition to Star Alliance, complimentary Elite upgrades will no longer be available on Northwest Airlines flights.
Effective Oct. 27, 2009:
• With our planned entry into Star Alliance, mileage requirements for reward travel will be changing, effective for travel booked on or after Oct. 27, 2009. Link to Continental’s new award chart.
• A Saturday-night stay is no longer required for OnePass reward travel.
• 100% Elite Qualification Miles and Elite Qualification Points can be earned on discounted fares regardless of where the ticket is purchased or issued. (Big win!)
• The BusinessFirst® $100 Upgrade Co-pay will no longer be required of members using miles to upgrade from B fare class.
• Elite bonuses will be based on the minimum mileage earned instead of the actual flight miles flown.
• Upon our planned entry into Star Alliance, OnePass members will no longer earn Elite Qualification Miles, Elite Qualification Points or Elite mileage bonuses for travel operated by Amtrak, Emirates, EVA Airways, Hawaiian Airlines, Island Air, Kingfisher and US Helicopter.
Effective Dec. 15, 2009:
• New reward travel fees will apply for redeposits, reservation changes and flight bookings within 21 days of departure for rewards redeemed on or after Dec. 15, 2009. Platinum Elite members will pay no fee, the Gold Elite member fee will be $25, the Silver Elite fee will be $50 and all other members will pay a fee of $75. These fees will apply per customer instead of per reservation. OnePass travel reward changes outside of 21 days of travel will remain free if there is no change to the origin and destination.
Effective Jan. 1, 2010:
• All members worldwide will earn 125% base miles on F, C, J and D fare classes.
• All members worldwide will earn 1.5 Elite Qualification Points when they purchase and fly in fare classes F, C, J, D, Z, Y and B on flights operated by Continental.
Posted by Marshall Jackson on August 27, 2009 under American Airlines, Ancillary Revenue, Continental Airlines, Delta Air Lines, US Airways |
Baggage Fees
US Airways jacks up baggage fees. Not a big shocker, but I think we’re getting close to a breaking point in how much consumers are willing to tolerate. I mean seriously, it’s starting to get a little nutty.
On Board Delays
The stem is coming off the rose in regards to travelers’ continued tolerance of airline excuses in regards to extended tarmac delays. The Continental Express incident in Rochester, MN has all but assured passage of some form of “bill of rights” legislation. It’s well intended, but like a lot of well intended pieces of legislation, the unintended consequences of it will be worth watching. As useless as I think the legislation will be, the airlines have no one to blame but themselves for not fixing the problem. And yes, I know government and the antiquated air traffic control system are to blame as well. Regardless, airlines have got to stop treating their customers like crap…and sometimes, they may need to work together in order to do so. (Hear that, Mesaba?)
Delta Brings Business Elite to Transcons
Delta Air Lines is introducing its Business Elite product to transcontinental flights from New York – JFK to Los Angeles and San Francisco. Delta says it will use Boeing 757s on the flights which feature Business Elite cabin seats with 150 degrees of recline and 55 inches of pitch. Delta also expects to have wi-fi on all of its transcontinental flights by the end of the year.
How’s that for a post of “random musings? 
Posted by Marshall Jackson on August 1, 2009 under Amtrak, Commentary / General Info, Continental Airlines, Delta Air Lines, Southwest Airlines, US Airways, United Airlines |
Southwest
What a week, huh? No, it really never crossed my mind that Southwest might throw it’s hat in the ring for Frontier. It just seemed a little too far-fetched, but less so with each passing day as I think about it. Southwest has been growing in Denver, and from some indications, doing so successfully though profits apparently remain elusive. Frontier appears to be making some headway in getting itself out of Chapter 11. And Denver’s number one airline, United, does anyone really think that they will still be in business as currently constituted one or two years from now? I don’t. Does that mean the United brand goes the way of Eastern, NO! But the vultures are starting to circle, and I think they are fish food for either US Airways or Continental by this time next year, whether the United name lives on or not, though I expect it will. Frontier has a relatively decent reputation for service, and a young workforce that will have the opportunity to join a much more stable and secure employer with an almost legendary reputation for looking after its people.
The only wrinkle is the fleet of “Airbii” that Frontier brings to the table. Southwest plans to eventually dispose of those as they absorb Frontier. I’m not certain how labor will integrate either. As I understand it, when Southwest purchased Morris Air, the Morris folks basically re-interviewed for their jobs and started over at the bottom. I wonder if the plan is to do this again? That worked out OK for everyone when Southwest was growing by leaps and bounds. But opportunities to move up the ladder come slowly in the current environment. This could be an important watch item for the integration. However, I’ve never bet against Southwest successfully accomplishing anything its set out to do, and I surely will not start now.
Delta Medallion Changes
Earlier this week, Delta announced changes to the Medallion elite program for 2010. Judging by the number of searches that landed on the blog, there’s a high degree of interest in what Delta is up to. You can check out my post from earlier this week here. The most beneficial changes include making Systemwide Upgrades usable on the day of departure and rollover Medallion Qualification Miles (MQMs). In other words, Silver Medallion requires 25,000 MQMs. If you end the year at 40,000 MQMs, you have a 15,000 MQM headstart on Medallion status for the following year. However, in order to be fully competitive with American and United, Delta needs to make its Systemwide Upgrades usable on any fare, and not just YBM fares which can be higher than other airlines discounted Business Class fares. The changes are not awe-inspiring, but I think they represent a net positive for Delta Medallions. And in a side note, I’m on target for reattaining Medallion status with Delta this year, which makes me happy!
United Drops Close-in Award Fees
In a true positive for Mileage Plus members, United has dropped fees for booking award travel less than 21 days prior to departure. I’ve posted before that this particular fee is one that I have never cared for. It costs no more to issue a ticket on day 2 before departure than day 202, which makes these “late booking” fees nothing more than an egregious money grab. Kudos to United for doing this.
The Week Ahead
I’ll be traveling to Philadelphia this week. No flying though. Amtrak’s Acela will be my chariot of choice. I’ll be sure to post a trip report on the Acela experience.
Posted by Marshall Jackson on July 26, 2009 under American Airlines, Ancillary Revenue, Continental Airlines, Delta Air Lines, JetBlue, Travel Tips, US Airways, United Airlines |
Most of the rest of the big “legacy” airlines joined USAirways this week in raising their fees to check baggage. American, Continental, Delta, and United all plan to raise the fee for checking your first bag to $20 dollars, up from $15 dollars. Notably, all but American will knock $5 dollars of the price if you prepay your fee online. Fees for the second bag will rise from $25 to $30 dollars, with all the airlines offering a $5 dollar discount for prepaying online with the exception of American.
In the case of American, I believe their refusal to offer a discount for prepaying the fee may have more to do with their inability to actually collect the fee online than with any desire to take you for the extra $5 dollars when their competitors are offering a discount. I would think this puts them at a small competitive disadvantage versus the competition, and will anxiously wait to see if they eventually offer the discount, or if the competition drops theirs. I would think there would be an incentive to offer the option for paying online if for no other reason than you don’t have to staff the airport with an agent to collect the fee.
In any event, I remain unopposed to the “a la carte” pricing model as long as the additional services being charged for can legitimately be considered as optional. I think that baggage is one of those legitimate options starting with the second checked bag. One piece of baggage is inherently part of the travel experience, and I recognize that you can still carry that one bag on for free. Nevertheless, I think JetBlue’s policy of the first checked bag for free and charging for the second is the right policy for checked baggage.
Posted by Marshall Jackson on April 18, 2009 under American Airlines, Commentary / General Info, Continental Airlines, Southwest Airlines |
Just a few thoughts for Saturday morning. Two Texas airlines reported net losses for the first quarter. No big surprise at American, other than most thought they’d lose more than the $375 million reported. Certainly a big surprise at Southwest with it’s $91 million net loss. And that was a real loss anyway you look at it. The first quarterly operating and net loss since the first Gulf War if my math is correct. I’m anxious to see results from the other Texas airline, Continental, which will report this week.
I already posted about Southwest and my suspicion that they are going to have to take action on labor costs at some point. The possibility is real that they have to approach their unions to reopen their recently negotiated contracts. They are not there yet, but I don’t think it’s out of the question. Their buy-out offer to employees will entice some to leave, I’m sure. But in this economy, I’m not convinced it will be successful enough. No matter what, I’m certain the folks at Southwest will work through this and fly through to the other side of this in better shape.
As for American, we’ll see. American’s managers are pretty bright financially, but they face enormous labor relations challenges. The unions are out to bleed the turnip just as revenue and traffic collapse. Not a good combination, and certainly not a recipe for dramatic financial recovery. It’s going to be a difficult year at American.
The “talking heads” and pundits in the press have been trumpeting the possibility of a profitable year for airlines as a result of dramatically lower fuel prices. Not outside of the realm of possibility that most airlines make a little money over the summer, but I’m not holding my breath for full-year profitability for any major carrier except Southwest (maybe).
This week, President Obama revealed an outline of his vision for high-speed rail networks throughout the country. I have long supported the idea that high-speed rail should be deployed in certain cooridors across the country. If this ultimately gets done, and let’s face it, that’s questionable, one airline stands to be hurt the most by this. That airline? Southwest.
How’s that for a post on random reflections?
