Delta to Offer In-Flight Wi-Fi This YearAugust 05 2008
As you’ll no doubt see elsewhere, Delta will begin offering in-flight wi-fi on its MD-80s later this year, with their entire domestic fleet outfitted by mid-2009. The service will cost $9.95 for flights under 3 hours and $12.95 on flights longer than 3-hours - not terrible when you think about it. Also on the plus side, the service won’t allow you to make internet telephone calls. Whew.
Delta Changes Award Structure, Pisses On You & Calls It Rain (Or Something)July 31 2008
Delta has changed their frequent flyer program to a new 3-tiered system that, as you probably guessed by now, does not mean you’ll be using fewer miles for award tickets (details here). In short: they’ve added a 3rd tier that now has last-seat availability for 30-50% more miles than the old top tier. If you’re thinking to yourself, “wait, I thought the old top tier WAS last seat availability.” You were right — until Delta changed that a little while ago in anticipation of this. Roundtrip tix in the US will now be 25,000/40,000/60,000 miles depending on availability (ie, you’ll never get a ticket for 25,000 miles again).
What’s most gaulling about this, to be honest, is that Delta is spinning this like it’s a benefit. From the press release:
“These changes will allow our members to better use their miles when they want, where they want and how they want — with no blackout dates and the ability again to book the last seat on the plane,” said Jeff Robertson, managing director of Delta’s SkyMiles program. “It’s all about Award Travel with flexibility — something our customers have been asking for.”
See…using 3 times as many miles as you used to for a roundtrip award ticket is something you asked for. Good for you, frequent flyers!
Also annoying is this from the NY Times: “Jeff Robertson, the managing director of Delta’s SkyMiles program, said the number of miles issued by Delta had grown 24 percent from 2004 to 2007, but the number of seats available on its planes did not increase. “The capacity is just not there,” Mr. Robertson said.
Wait…YOU guys gave out the miles. Your release calls SkyMiles one of “the most successful loyalty programs in the travel industry.” I see, you’re victims of your own success. Sheesh.
I’m rarely one to just complain about this kind of stuff, and I more than understand the reasons for the changes. But does Delta really think that its frequent flyers are excited about this change? Really? Aren’t we all adults here? Let’s just say what’s really going on: We’re in a rough financial situation and all of us are going to have to kick in to help - that means you, too, passengers. Get over it.
But no, that’s not how it’s going to be. Delta upped the 2nd bag fee two days ago to $50 (from $25). I’m sure frequent flyers were begging for that change as well.
Delta Flight Attendant Finds Passenger in Bathroom (Dead, Not Using the Bathroom)July 30 2008
Flight attendants on a Delta from from LA to Atlanta this morning noticed that the restroom door was locked when they were landing. This is usually not a good sign. They discovered that a passenger had died in the bathroom during the flight. Luckily Delta only charges a fee for the second dead passenger.
Delta Passengers Stranded on Plane for 7 HoursJuly 29 2008
You probably thought the days of 7-hour onboard delays were over. You were thinking wrong. Passengers were stranded on a Delta flight from Las Vegas to JFK on Sunday for about 6 hours when the captain told them that they would not be taking off that day. It then took another hour to get everyone back to the gate (where they could gamble - finally!). While on board, they were offered no food, though at the end each person was given half a cup of warm water or soda. Their choice. Delta’s response? Basically, quit bitching, it was really only 5 hours.
It could’ve been worse: passengers on a delayed China Southern flight in Kunming completely lost it after their flight was delayed. The frusrated group smashed computers, desks and chairs in the terminal before police arrived to calm down the situation.
Delta to Charge $25-$50 for Award TicketsJune 30 2008
Delta has introduced a $25 fee for redeeming miles for domestic tickets and a $50 fee for international tickets beginning on August 15th. They’re calling the fee a “surcharge,” but you shouldn’t hold your breath for those fees to disappear, um, ever. I wouldn’t be shocked, though, when these fees increase (first on the international tickets, then on the domestic).
Delta Baggage Fee Refund for Some PassengersJune 23 2008
Delta implemented a $25 second-checked-bag fee on April 9th for flights after May 5th (you had to pay the fee regardless of whether you had already purchased a ticket for those dates prior to the announcement). Well, it turns out they can’t do that.
If you purchased a ticket on Delta prior to April 9th, and you had to pay a baggage fee for your flight after May 5th, you are entitled to a refund (details here).
Delta to Turn a Profit in Q2June 19 2008
I rarely report airline financials here, but I thought it was interesting to note that Delta announced yesterday that they expect to turn a profit in the 2nd quarter (ie, this quarter). I’m by no means suggesting that the situation isn’t gloomy (it is), but we should remember that it’s not impossible to be profitable either (Southwest and Allegiant).
Just to be clear, Delta’s not in good shape - they announced they’re further cutting capacity in the 4th quarter (from 10% to 13% - yikes).
And one further note (as if this isn’t a random enough post as it is), I saw that a US Airways exec said that so-called a la carte pricing (aka, fees for everything) could bring $300 million in additional revenue to the airline. He also said that customers prefer to have everything unbundled. Which would be true if the base fare were lowered (as Air Canada had done) and added on top of that. That’s not what happened. I don’t begrudge the airlines anything - they should charge whatever they want for everything. The market will dictate whether it’s a good idea. But where I think they’re making an error is in treating the new fees as if they’re in any way at all beneficial or that cutting back on frequent flyer benefits helps to make Dividend Miles “one of the best programs in the industry.”
It’s time to stop flinging the B.S. - every traveler knows that the industry is a mess because (at least in some part) of the fuel situation. Travelers have the same issues when they drive. I think if they were completely up front about it - we’re instituting these fees because we can’t raise fares - consumers would be fine. Suggesting that consumers are benefiting from the changes is just silly.
Delta to Cancel Contract with Pinnacle Due to Late Flights (That Delta Scheduled…)June 11 2008
I know most of you don’t care about the relationships between airlines and their regional partners, but bear with me for about 3 sentences: Delta told its regional partner Pinnacle that it will be canceling a 10-year agreement they have because Pinnacle’s on-time record isn’t meeting standards. Pinnacle, in response, said that they told Delta when Delta came up with Pinnacle’s schedules, that the timings were unrealistic. Now Delta is canceling the contract because, well, the timings were unrealistic. Pinnacle will likely sue.
Delta is already embroiled in a lawsuit with Mesa Airways’ Freedom Airlines, which got a court order preventing Delta from canceling their agreement.
Some who follow all of this suggest that Delta is trying to cut these agreements to help ease the merger with Northwest.
Get a $50 Gift Card for Flying Delta Across the CountryMay 05 2008
Delta is offering a $50 Amex gift card if you book a flight between JFK and LA, San Francisco, San Diego, Portland and Seattle for travel through the end of June. Take that, JetBlue.
(Reader Tom points out that JetBlue has a similar promotion - book your JetBlue ticket by May 16 for flights until June 11th anywhere they fly and you’ll get $50 off a future flight).
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Delta: Oh, There’s, Like, Totally More Synergies Than We ThoughtApril 24 2008
One interesting note from yesterday’s news about Delta’s earnings: Their CEO said that the $1 billion in annual revenue and cost synergies fromthe merger are “really conservative.” As they delve further into the merger, they expect that “significantly more [cost/revenue synergy] opportunities” to be found.
Which is to say, “We have no idea what’s going to happen, but we’re sure we’ll magically make more money.” Never believe the synergy hype.
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