Good thing I like building tools to help clarify frequent flier program data like this. Welcome to the Avios Redemption Calculator.

Put in your preferred city pair and the tool will search connections based on published routes and the Avios award schedule and spit out various non-stop and single connection routing options and their costs.

It is definitely interesting to see how the cost can vary by more than 100%, depending on the routing chosen.

The tool is still somewhat a work in progress as I’ve got a few more bits I want to add to it, especially more partner carriers, but the base functionality is up and running and pretty solid in my initial testing. Give it a try and see what you can come up with.

Well, it is time for the annoyance and frustration to go away. It is time for an easier search interface. It is time for another update to the Wandering Aramean Travel Tools!

The United SWUable tool has been around for a while now, though it has recently seen a number of updates to get it back online after a short hiatus due to data source issues. The Delta version of the tool is a new addition and has just come out of beta and is ready for action.

Here’s how it works:

• Head to either the United or Delta version of the tool.
• Zoom in on the map to find your departure city or destination airport.
  
• Or scroll down and choose from the airports or price points listed.
  
• Check out the fare data and pick the option that works for you!
  

The fares listed are EXCLUSIVE of taxes and fees. This means that any YQ fuel surcharges are not included. I wish they were, but the GDS from which the data comes doesn’t have them and I cannot just make up the data so I’m publishing what I’ve got. Still better than a poke in the eye. Also, the fares are published fares, not necessarily the lowest available on your specific dates of travel. Not perfect, but a good starting point. And the CPM is point-to-point, so odds are you can do better than that with creative routings on most city pairs.

Not seeing the fare you want, but hoping that it will happen? I’ve got a system set up for that, too. Click on the "Manage My Alerts" link and you can set up email alerts for various cities and price points. Every morning after the fare data is collected the system checks the alert queue and sends out emails if the fares are available.

There’s also fare history (more useful for the United data right now, but the Delta data is building) so you can watch trends.

The fare history page also has the actual numbers so you can see those bits, too. And I’ve fixed the bug that’s causing the multiple daily entries the past couple weeks.

Hopefully the tool can help you better apply the SWUs you’ve earned. Happy flying!!

One of my many travel-related projects is the Wandering Aramean Travel Tools website. It includes, among other things, award inventory information for a bunch of airlines. And now that the data is accessible, Korean Air is part of that collection. You can search for award or upgrade inventory for free. And there’s even an email alert function that can be set, allowing you to get a message if the award inventory opens up.

Yes, you have to register to gain access to the data, but it is free and no strings attached.

Here’s a snip of what the search page looks like:

Not particularly pretty, but quite functional. Also of note is that sometimes the system will provide options that don’t quite get you where you’re going, but to an intermediate connecting point instead. On the above Seoul to Singapore search there are two non-stop flights (KE 641 and 643) that are both available, but there is also KE 683 to SGN, from which you might be able to pick up a connection on SkyTeam partner Vietnam Airlines, another of the carriers searchable in the tool collection. Displaying more than just the non-stop options should help folks with flexibility to better find awards that work.

Coach award inventory is not currently available in the system and first class isn’t available to partners, but otherwise the data should be accurate for redemptions.

Give the tools a try and let me know what you think.

The company claims the suspension was triggered automatically by the IATA systems when a technical glitch prevented their scheduled payment from reaching the clearinghouse:

As a result of a recent internal system failure, certain credits did not hit our ICH account in time, triggering an automatic suspension. Kingfisher would like to confirm that all its dues via ICH have been settled in full and it has absolutely no outstanding due as of date,

Despite claiming to be current it appears that IATA has not yet commented or reinstated the carrier to the systems.

Adding fuel to the fire is the announcement today that the planned February 10, 2012 ascension of Kingfisher into oneworld is being delayed, with no revised date yet announced. FlightGlobal is carrying the story, with quotes from both oneworld and Kingfisher executives on this latest development. Said oneworld CEO Bruce Ashby:

These are turbulent times for the airline industry in India and many other parts of the world. We have been working closely with Kingfisher Airlines over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into Oneworld. Will work with Kingfisher Airlines with the aim of setting a new joining date once it is through this current period of turbulence.

This delay is somewhat reminiscent of the frequent delays that Air India suffered in their attempts to join Star Alliance over the past few years. Those efforts were eventually scuttled after multiple delays.

Without access to interline booking revenue is seems unlikely that Kingfisher will be able to realize the revenue needed to pull themselves out of their financial morass. With many unpaid or severely delayed bills the future of the carrier is very much in question. It is not surprising that the alliance is not interested in bringing the carrier on board as their liabilities for interline travel could be significant.

This is a serious blow for oneworld, as another member carrier, Malev, ceased operations today, also under financial pressures they could not overcome.

Not a good day in the aviation world at all.

Hat tip to Flying With Fish for the head’s up on this one.

Related Posts:

• Kingfisher set to join oneworld. If they can stay in business.
• Kingfisher looking even more shaky; I’ll book elsewhere
• Malev ceases operations; all planes grounded
• Star Alliance, Air India link "on hold"
• Air India: Shining Star or Black Hole?
• SkyTeam, oneworld announce expansion

Michelle Elridge, an IRS spokeswoman is quoted in that LA Times column as offering up three very specific bits of information about points and their taxability:

When frequent-flier miles are provided as a premium for opening a financial account, it can be a taxable situation subject to reporting under current law.

This part is pretty clear, though not necessarily what most folks want to hear. It suggests that Citi was correct to be sending out the 1099s and reporting the tax liability. The particularly interesting bit is the use of the term "financial account." Not only would this apply to bank accounts, but it could also be reasonably interpreted to apply to credit card and investment accounts as well. After all, those are financial accounts and the points are provided as a premium for opening the account. Not particularly good news for folks who are accustomed to churning CCs and Fidelity/Ameritrade accounts for the huge sign-up bonuses.

As for taxing "regular" levels of mileage earning on CC spend or the actual flying, that’s still safe. The IRS continues to see that as a rebate and not income, so no tax liability there.

A common analogy is buying a $500 television at a retail store and receiving a $50 manufacturer’s rebate. It’s not income, just a deemed reduction of the cost of the television.

The most complicated (and oft-debated) part of the debate might be the valuation of the miles. Many insist that the liability should be the fraction of a cent that the banks pay to buy the points from the airlines. The banks disagree, reporting the value at the full retail price as reported by the airlines. And the IRS is somewhere in the middle.

Under the income tax law the amount of income to the taxpayer is the value of the property received, not the cost that the business paid to acquire the property.

The real gray area there is "value of the property received" which is, by the nature of the property in this case, variable. And it could even be argued that the recipient actually never receives property since the T&Cs of the programs say that the points are the property of the programs. There are others who have explained how to dispute the value reported on the 1099s.

Whatever the approach consumers take, it is clear that the IRS sees these sign-up bonuses as a very different beast from the regular spend earning. And the use of the term "financial account" is very open-ended. The CC churn boondoggle may be coming to an end sooner than we all hoped.

A lot of the news which I found most interesting was around the "Even More" products that the company sells. What started with Even More Legroom seats offering additional pitch in the cabin has expanded to Even More Space (offering pre-boarding to ensure overhead bin space) and Even More Speed for access to priority security lines in many airports. This service started in 15 airports and recently expanded to 9 more. And selling the service resulted in $120MM of incremental revenue for the company in 2011. That’s a huge number, more than 20% of the total incremental that the company saw in the year.

Given the high revenue realized from the offering, it is not surprising that the company is expanding the number of seats for which it can be purchased. Specifically, the company confirmed that they will be adding 8 more seats to their Embraer E90 planes in the Q2/Q3 timeframe this year. Full details aren’t yet available on the announcement (seems to be a bit of a pattern there lately) but a quick review of the seat map suggests that they can get away with sliding a couple rows behind the exit row around and not really have to change too much else around, so long as they’re willing to keep the 34" pitch that the E90 has. If they go for the 38" that the A320s have they could also do that behind the exit row with minimal impact to customers, changing the other seats in that section from 33" to 32" pitch. Either way, it looks to be a positive change for the company to make more EML seats available.

Beyond the Even More bits, the honeymoon comment piqued my curiosity. The company had a huge growth spurt a few years back, taking on a bunch of new airplanes in a very short timeframe. Those acquisitions are now hitting the magic point in the life of an airplane known as a "C-Check." The maintenance costs for the C-Check and engine restorations on the aircraft are significant and the number of planes the company has going through that process in the next couple years is quite high. The result is a spike in maintenance costs. JetBlue has worked with their maintenance suppliers to mitigate the costs somewhat, but it will still be a challenge for the company in the coming years. And that’s all with a fleet that is still only 6.1 years old on average with a maximum age of 12 years.

There was mention of the new Hawaiian Airlines partnership, but no additional details shared there. And it was suggested that 5-7 new partners will be coming online in 2012, with links at Boston and Orlando likely rather than just at New York City. I’m betting on JAL being a partner via Boston with their new service there starting soon, but who knows.

Other than those bits, not a whole lot of interest. Plenty of accounting mumbo jumbo but nothing that seems especially significant at this point. And there are still a number of open questions, like where the company stands on rolling out additional benefits for their most frequent customers or many of the partnership details with Hawaiian. I guess patience will have to suffice.

Related Posts:

• A few first in the JetBlue/Hawaiian partnership
• JetBlue, Hawaiian team up for JFK service
• Peek at possible new features for JetBlue’s TrueBlue program
• JetBlue continues build-up of San Juan hub
• JetBlue now offering priority security access in 15 airports
• Even More Money for Even More Legroom

For starters, Hawaiian will be, subject to government approval, adding their code to some JetBlue flights. None of the previously established interline agreements have included such a marketing offer. This is not particularly significant from an operational perspective but for pricing reasons this should allow fares to be sold that are not necessarily additive via the connecting city. That’s a big step for JetBlue and a great benefit for the customers in terms of pricing.

The other major first is that the deal will permit not only accrual of points in both programs – on all flights, unlike the limited partnership with American Airlines – but it will also permit redemption on all flights:

Hawaiian and JetBlue have reached a preliminary agreement to allow members of each carrier’s frequent flyer program to earn and redeem loyalty points or miles for travel on either carrier. Under this agreement JetBlue’s TrueBlue members will soon be able to accrue points on any Hawaiian-operated flight, while HawaiianMiles members will be able to earn miles on any JetBlue-operated flights. Similarly, frequent fliers will be able to redeem their points or miles for travel on either carrier’s network, bringing new, much-requested destinations to each program’s loyal members.

The details on earning and redemption rates are scarce at this point. And the two programs are quite different, with Hawaiian operating a more traditional model (points earnt by distance flown; redemption calculated by zones) while both earning and redemption rates in the JetBlue TrueBlue program are more tightly tied to the fare on the flight. Obviously there will need to be some reconciliation between these two schemes along the way.

The arrangement also marks the first time that a JetBlue partner will operate from the JetBlue terminal at JFK airport. There is at least one gate in T5 which can support the Airbus A330 aircraft that Hawaiian will be flying in to New York City, though it remains to be seen what the impact is on the waiting areas with a 294-passenger aircraft using the space; the JetBlue A320s max out at 150 passengers.

Still a number of questions to be answered, but lots of positive developments so far.

Related Posts:

• JetBlue, Hawaiian team up for JFK service
• Hawaiian launching service to New York City
• JetBlue & American Airlines announce earning reciprocity

JetBlue has been steadily growing their roster of interline partners but one one of those – American Airlines – has any form of points reciprocity set up. This deal will include at least some reciprocity on the frequent flyer side. Full details are yet to come, but it is nice to see benefits in both the flight and loyalty programs coming to fruition.

More details to come as they are made available…

The Continental/Virgin relationship made a lot of sense when it was originally launched. Continental had a minimal amount of traffic into London at all and none into Heathrow due to the Bermuda II restrictions. It allowed Continental to market flights into Heathrow under their own code and to sell onward connections using Heathrow as a transit point. Since the establishment of the Open Skies agreement between the US and the EU, however, Continental has had access to Heathrow and has steadily increased flights there. Add in the merger with United and there are only a few cities now where Virgin had nonstop service ex-LHR that the combined United doesn’t and those are less significant today.

The end of the partnership is rather unfortunate on the redemption side of the frequent flyer program in particular as Virgin has often had decent award availability, especially in their Upper Class business class product and especially close to the travel date. I’ve taken advantage of that a couple times and, though I’m not a huge fan of the product, it is still an option being lost which is unfortunate.

Also unfortunate is the timing of the announcement. The company provided barely 4 weeks’ notice of the change, one that they have likely known about for some time. It is a shame that the changes to partners and earning rates are trickling out so slowly as part of the merger process.

As part of the launch release Virgin America pulled no punches, describing their competition in less than flattering terms. Said company CEO David Cush:

Travelers deserve more options than just the typical legacy airline cattle car, and we hope our unique brand of low fares and inventive service will be a breath of fresh air for Philadelphians.

I didn’t expect Philadelphia to be the new market based mostly on the fact that transcons are expensive and it generally takes a lot of capacity to compete in those markets; once daily service, especially between larger cities, is often frowned upon by customers. Virgin America is coming in big, however, adding three flights to Los Angeles which will increase the daily frequencies from 7 to 10, a reasonably significant capacity upgrade. Similarly, the frequencies on the San Francisco route will increase from 8 to 10 with the two new Virgin flights.

But are there enough passengers – profitable ones at that – to make the service work? Virgin seems to think so, suggesting that roughly half of the passengers on each of those routes takes a connecting flight rather than a nonstop option. So maybe there are enough people looking for nonstop options; the question is whether they’re profitable. Time will tell.

With all the hating that goes on against US Airways, this route might seem like a perfect assault. But attacking them at Philadelphia with only a couple non-stop destinations seems unlikely to be the way to go. Even Southwest, which attacked many more routes, is pulling back in their assault there, suggesting that US Airways is reasonably stable and willing to fight their competitors.

One thing it might do, however, is convince US Airways to compete on pricing for the routes. A one-way fare is currently $850 on US from Phillly to LA; the new numbers with Virgin in the market look to be a bit lower:

Interestingly, while US hasn’t been matching Delta fares on the route (or United Airlines on flights to San Francisco) they appear to be taking the Virgin entry into the market a bit more seriously. They aren’t completely matching the fare, but they are much closer, at least for San Francisco. Apparently they’re banking on their frequent flyers or the more frequent schedules demanding a $20ish premium for the route.

For Los Angeles, however, the price disparity remains, at least as of this morning.

It is also worth noting that elites in the US Airways Dividend Miles program can confirm that $850 fare into the first class cabin at the time of ticketing. Virgin is selling their first class cabin – admittedly MUCH nicer than that of the US Airways A321s – for about $1,000, a premium for elites, though still $200 less than the non-elite upgrade fare from US. Both are significantly higher than Delta’s first class fare on the route.

What does it all mean? I have no idea. But there are enough interesting bits at play here that it is worth watching. Oh, and prices on some of the inaugural flights are still pretty reasonable, so I might be headed to Philly for some fun in early April.