Archive for the 'Guest Posts' Category

Guest Post: HR3371 Hurts Aviation

Last week, the House passed a bill that would require first officers of regional airlines to have an Airline Transport Pilot License (ATP). I was going to write a post about it, but noticed that my friend Martin Rottler wrote a thought-provoking article on the topic for his student newspaper. Martin is a graduate student at the University of North Dakota, where many future pilots receive their education.

A few weeks ago, I wrote an article for this newspaper about lagging interest in aviation, both as a career and as a hobby.

While most of the comments I received on the article were overwhelmingly positive, the article only partially had the effect I intended. This past Wednesday, the U.S. House of Representatives passed House Resolution 3371, a bill, which, if signed into law, would greatly increase the minimum hour and certification requirements for airline pilots in the United States. This resolution has far-reaching consequences throughout the aviation industry, especially at flight training institutions such as UND’s John D. Odegard School of Aerospace Sciences. Continue reading ‘Guest Post: HR3371 Hurts Aviation’

Savvy Navigator Does the Southern Cross

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Today, I have a post from Jeffrey Ward of Savvy Navigator.

With Dan heading to foreign shores for his long-overdue holiday, I’m pleased that he asked me to pen some musings about my own experiences as an airline geek and how this passion is still very present in my life – just as it was over 30 years ago when I was a make-believe-airline-creating child in a small Texas town, desperate to hop onto a jet and fly anywhere that was far away from the Lone Star State.

This month marks a significant milestone in my airline travels, in that I’m making my first roundtrip, South Atlantic crossing between South America and Africa. Over the years, I’ve crossed numerous times between North America and Europe, and unless I consult my flight log database, I’m unsure how many times I’ve actually crossed the North Atlantic.

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Back in 2000, I was lucky enough to cross from Europe to South America on a BA 747-400 with a LGW-GIG-GRU routing. And in 2007, an SAA JNB-IAD trip on another A-340-600 filled in the “Northwest to Southeast” gap for me.

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I’ve also made numerous Europe to Arica trips, so until this month, the only Atlantic crossing that eluded me was the coveted Southern routing.

This month, I did it! As I type this blog entry, I am on board SA222, an A-340-600 (ZS-SND), en-route from Johannesburg (JNB) to Sao Paolo (GRU), where I will connect on to JJ8004, TAM’s A-320 service to Buenos Aires (EZE). Our flying time on the Atlantic today is 9:58, and, sadly, I’m seated in the main cabin. The flight, however, is only about 2/3 full, so I have a window seat with an empty seat next to me. Two weeks ago, I arrived in Africa (JNB) from Buenos Aires, also on SAA in economy, but on a virtually-empty A-340-200, which afforded me 4 seats together for a poor-man’s-lie-flat experience.

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I must admit that these flights don’t feel much different from similarly-timed US-Europe flights, but if I look around the cabin, I don’t see any Americans or Europeans. On this particular flight, it appears that most passengers are either African or Brazilian. And on the EZE-JNB flight, the passenger manifest consisted mostly of Argentine or Chilean football groups.

Now that this particular dream of mine is fulfilled, my friends and associates are asking, “What’s next, Jeff?” I’m pretty sure that next great crossing will be from Africa to Australia across the Indian Ocean (something like JNB-SYD), or it might even be a full Southern-Hemisphere circumnavigation, which will nicely complement my prior Northern routings.

But, for now, I’ll just bask in glory of my self-imposed, Savvy Navigator of the Southern Cross(ing) title!

Jeffrey Ward is a lifelong airline geek, former AAirline executive, and now the owner of Savvy Navigator Tours LLC, a leading provider of luxurious, experiential journeys for the gay traveler.

The Fly America Act

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Evan Sparks, who writes a fantastic blog on aviation policy, was kind enough to write a post for today.

Outside of government agencies, the federal Fly America Act is little known. But it’s a very consequential set of rules for federal workers in Washington, D.C., and the airlines and airports that serve them. The act (whose rules are explained in great detail here) requires federal employees or contractors to use U.S. flag carriers for all official business unless using a U.S. flag carrier would extend travel time by more than 24 hours, wait more than six hours at an overseas transfer airport, require two or more layovers more than a foreign carrier’s itinerary, or other similar requirements. Flying on a foreign carrier is permitted as long as a U.S. carrier is codesharing that flight; Lufthansa, for example, has a handout on how the Fly America requirements apply to it.

The Fly America Act is minor payback to U.S. airlines for their participation in the Civil Reserve Air Fleet, a military program through which U.S. carriers would contribute aircraft for transport in emergencies. But the way I see it, it’s a bigger payback to some airlines than to others. United Airlines, through its hub at Washington’s Dulles airport, stands to capture most of the benefits of the Fly America Act. The greater Washington area is home to more than 16 percent of civilian, non-Postal Service, federal employees, and Dulles is the only airport in the area with significant international service. United serves at last count twenty-six foreign destinations on four continents from Dulles and codeshares with Star Alliance partners to destinations radiating from their hubs in Frankfurt, Tokyo, Singapore, and elsewhere. Almost all other international service to Washington-area airports is under foreign flag carriers. This gives United an automatic advantage.

Dulles is located way out (to me, anyway; I live in the District of Columbia) in the Virginia exurbs. It’s not very convenient for people who live in the District or the Maryland suburbs. Tim Campbell, the head of Baltimore-Washington International Airport, recently said at a press conference that more federal employees live in Maryland than Virginia and would find BWI a more attractive travel option, but there’s no competition there. Is Fly America unfairly tilted toward United and Dulles? George Mason University econ professor Don Boudreaux says it’s tilted unfairly toward American carriers. “I applaud your brilliant scheme!” he comments with tongue in cheek. “Even if it costs taxpayers more money, obviously this Act helps to protect American carriers from the nefarious competition of foreign airlines.

Even if the Fly America Act is on the margins of aviation discourse, it is worth considering whether it’s fair to all U.S. airlines or fair to the taxpayers.

Evan Sparks writes about aviation policy from Washington at EvanSparks.com.

Airline Jargon Humour

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Fellow BoardingArea blogger Steven Frischling, who pens Flying With Fish, is the author of today’s post.

While Dan Webb is away…Fish has been asked to come over and play! Since Dan is out on the open waters, sailing in at least one of the seven seas…possibly in Bermuda Triangle while discussing airlines with fellow Boarding Area blogger Marshall Jackson, I figured I’d bring some humour over to Things In The Sky.

‘Airline geeks’ tend to speak in a foreign language of terminology that is unique to those who are involved in the industry and those who follow the industry. Like any other industry there are common terms that make sense to those involved and confuse those who are not involved.

At times using jargon/slang/geek talk, can get you into some trouble when among those who have no idea what you’re talking about. As such I’d like to discuss a few funny moment I have encountered during my travels while conversing with ‘airline geeks’…and being overheard by those who are not
‘airline geeks.’

#1 DFS is short for a Transportation Security Administration “Dual Function Screener.”

…a few months ago I was standing in the TSA security line at Baltimore- Washington International Airport (BWI) and chatting with another frequent flyer about the TSA. As we approached the security screening area there were two “DFS” agents, in jump suits, checking IDs and boarding passes. The other frequent flyer turned to me and said, “They must be short handed, they have DFSs out.” One of the TSA DFS agents heard this and loudly shouted back “We are not ‘Doofuses,’ we are trained professionals here for your protection.”

I don’t think either of us kept a straight face as we made out way through security. Neither of us had insulted the TSA agents, or made any negative comment regarding their professionalism, in fact the TSA DFSs were very polite and professional…they did however clearly misunderstand what were
discussing.

#2 FAM/FAMS is short for Federal Air Marshal or Federal Air Marshal Service.

…Last summer while waiting for a flight at Washington DC’s Reagan National Airport (DCA) I was chatting with a TV photographer while waiting for a flight up to Philadelphia (PHL). In part we were discussing Federal Air Marshals and how they can often be easy to spot if you know what to
look for. As boarding was starting for another flight we watched two FAMs walk up to the gate and board well ahead of the other passengers, often an easy give away to who is a FAM on a flight. While watching this the TV photographer remarked “I hate flying with FAMs they take my upgrades.”

With that comment, a women seated behind us turned and glared us, then sternly wanted to know why flying with ‘families’ would affect anyone’s upgrade.

#3 FFP is a common abbreviation for ‘Frequent Flyer Program”

…in a very bizarre moment last month in the Air France l’Espace Arrivals Lounge at Paris’ Charles de Gaulle International Airport (CDG) I was speaking with a woman I had met on a flight from New York’s JFK (JFK) over to CDG and we were discussing the new combined Delta Airlines & Northwest Airlines frequent flyer program while eating breakfast. At some point one of us used the term “FFP” very clearly. The term “FFP,” normally not misunderstood, or paid attention to, caught the ear of a man who was
clearly Russian by his accent. This Russian traveller’s head sprang up, he muttered something about the ‘FSB’ very clearly to whomever he was chatting with on his mobile phone, he grabbed his bags and quickly exited the lounge.

For those of you not familiar with the term “FSB” it is the abbreviation for the Russian Federal Security Service…also known as the ‘secret police’…also known as the successor to the KGB.

I’d LOVE to know the back story on that passenger!

#4 Three-Holer is a slang comment for an MD-11, DC-10, L1011, 727, all planes with three engines…or three holes. It is oddly enough an endearing term for these aircraft.

…I saved the best (worst?) for last…a few weeks ago I was standing in Amsterdam’s Schiphol International Airport (AMS) watching the last flight of the night push off the gate. The last flight is an MD-11, or ‘three holer.’ Since AMS is known for having more plane spotters per square inch than almost any other airport, except possibly Hong Kong (HKG), I was not surprised to be in a conversation regarding my personal enjoyment of watching ‘three-holers’ at the airport.

As the KLM MD-11 was fully pushed back from the gate and being towed down the alley way this fellow flyer and airline enthusiast and I both chatted about our enjoyment of watching the planes come and go at AMS, our favourite places to sit and watch the planes at AMS and how we’ll miss the MD-11s when they are finally removed from service.

As the MD-11 taxied away from view I commented simply “I love watching three holers move.”

With that comment a woman who was walking by the two of us turned around and quickly shouted to us that were “perverts and we should be ashamed!”

So next time you take your ‘airline geekiness’ on the road maybe you should just keep your comments to yourself.

Happy Flying!

Steven Frischling
Flying With Fish
Blog: www.flyingwithfish.com
Mail: fish@flyingwithfish.com
Twit: www.twitter.com/flyingwithfish

Airline Dorks Still Face a Bright Future

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Today’s post comes from Brett Snyder, better known as The Cranky Flier.

When I went on vacation last month, Dan wrote on my blog about the (potentially dark) future of airline geekiness. He asked, would he still be an airline geek today considering how much more unfriendliness has been introduced into our industry? His conclusion was that he would, though he wasn’t entirely sure. Personally, I’m fairly optimistic about the future of airline geekiness, something you might not expect from someone who writes a blog entitled The Cranky Flier. But that optimism probably comes from my personal history.

I don’t really know how I caught the bug, but it happened early. There is even video of me staring at airplanes flying over our house into Van Nuys Airport before I could speak. So it’s always been there, though clearly some nurturing over the years helped it grow. Sure, there are some things that hooked me on this industry that couldn’t happen today (timetable runs, for instance), but my fondest memories can be recreated without any trouble.

One of my favorite memories is actually a series of moments involving the Sheraton Plaza La Reina at LAX (now called the Sheraton Gateway). See, when I was a kid, my family did everything they could to encourage my love of the airlines. One year for my birthday, my grandmother surprised me with an incredible birthday present.

She took me over to LAX, but we didn’t go into the terminal area. Instead, we headed east into the parking lot of the Sheraton right nearby. We checked in exactly at check-in time, and we made our way to our room. At the time, this was the biggest room I had ever seen.

My grandmother had called the hotel to find out how she could get views of both sets of runways. She settled on a suite, room 1076. This gave me an unobstructed view of landings on the north runways and a good view of a piece of the south runways as well. I was in heaven.

I sat there at the window with a pad and a pen until the sun went down. Every time a plane flew by, I marked it down on my paper. (The picture is from a later visit.) There were smiling PSA birds flitting by nonstop along with bigger jets from the likes of Eastern and TWA. I can still remember the iconic Pan Am 747s gliding in alongside now-forgotten airlines, like the mysterious deep blue-hued Transtar.

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Being summer, the sun didn’t go down until late, so my grandmother ordered up room service and we sat there eating in front of the window until I could no longer identify the airline identities in the failing light.

The next morning, I woke up with the sun and saw the Asian arrivals march into formation. Soon enough, it was time to leave and I couldn’t have been more unhappy. There was no better way to cement my airline dorkiness.

Sadly, within a couple years, my grandmother unexpectedly passed away. To this day, that is my happiest memory in a sea of happy memories with her. My parents tried to recreate the magic by taking me back to the Sheraton a couple years later. Of course, it wasn’t quite the same, but I loved it no less.

It was many years before I went back again. I had told my now-wife this story in passing, and she seized on it. A couple years ago, she surprised me with the same birthday present my grandmother had given me twenty years earlier. The hotel’s name had changed and it had been upgraded, but the room numbers hadn’t budged. We stepped into room 1076 and all the memories came flooding back.

Though my wife brought plenty of things to pass the time, all I needed was a pad of paper and pen. The view was more than enough to keep me busy. The planes were different this time. Many more Southwest 737s had replaced the smiling PSA MD-80s, and the ghosts of Eastern, TWA, and Pan Am were long gone, but I still had no trouble remembering why I fell in love with this industry back then.

When I think about all the barriers being erected to prevent people from falling in love with the airline industry, I can always remember my experiences at the Sheraton. The planes may be different, but everything else is still the same. Hopefully more generations will be able to find similar experiences that spark their love affair with this industry, warts and all.

Brett Snyder is the author of the award-winning consumer air travel blog, The Cranky Flier. He also writes as an airline industry analyst for BNET Travel. You can usually find him milling around his home airport in Long Beach.

Is There a Future in the Airline Business?

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Fellow BoardingArea blogger Marshall Jackson, who is actually sailing on the Liberty of the Seas with me, is the author of today’s post.

On September 15, 1985, I took to the skies in a Piper Cherokee (N1696T) for the first time.  I was 15 years old, and for the better part of my natural life leading up to that flight, I had one goal in mind: to become an airline pilot.  Seriously, I lived and breathed flying and being a pilot.  I soloed at age 16, got my private license at 17 and my Commercial, Multi-Engine, and Instrument Ratings at 19.  By the time my flying career was cut short by Type 1 Diabetes, I’d amassed a few thousand hours and was working as a Saab 340 First Officer for a regional airline.  I was 25 years old, and for the first time in a long time, I was no longer sure what I wanted to be when I grew up.  I spent the next several years in various management positions at the regional and major airline parent company before moving on to something a bit more stable.

One thing I learned after my premature “grounding” was that it really takes a team effort to make something as complicated as an airline tick.  Airlines need motivated and innovative employees that are smart, and capable of thinking on their feet.  And they need those types of employees in every facet of the operation, not just the cockpit.  The day I left my airline, I’d never worked for another employer post college.  I loved the airline business and its inherent challenges.  Everyday was something different, and when I finally went home at night, it was always with a sense that I had accomplished something.  I survived 9/11 layoffs, union squabbles, “restructuring agreements,” and all manner of other challenges without a scratch, but still, I left.  And I wasn’t the last one.  For sure, airline employment has fallen as capacity has been ratcheted down, but I think there’s a bigger problem.  Airlines of all shapes and sizes are suffering from a talent drain of sorts.  To put it simply, good help is hard to find (and keep) when your recruiting brochure promises nothing but threats of paycuts, no retirement, and constant worry about losing your job.

The only airline that has been remotely successful at attracting and keeping people is Southwest.  Let’s face it, Southwest doesn’t fly everywhere, and we need more than one airline.  How will the others set things right again so they not just survive, but thrive?  I suppose I’d be the CEO of my former employer if I had the answer to that question, but I do have a few ideas.  The time has come for a paradigm shift in the domestic airline industry.  The first CEO to get this right will own the world, or at least a lot more market share.  The disgraceful wars between management and labor at many domestic airlines must come to an end.  Some management groups have set themselves up by taking large stock-based “bonuses” while their employees’ wages have been cut to levels of the 1990s.  And labor leaders are busy backing themselves into a corner by promising unattainable contracts without regard to whether they provide a product that will earn the revenue needed to pay them.  It will be a long flight back from the brink, but I am certain a few players in the industry we love will get there.  And when they do, hopefully this industry will finally reach a state of equilibrium that will make it an attractive place to work again.

Three Ways Airline Brands Can Make Money from Twitter

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Today I have Shashank Nigam from Simpliflying. You can see the original post here.

A couple of weeks ago, I asked had an interesting conversation with a senior airline executive in Asia. Here’s how it went:

SN: What’s the emotional motivation (not $) for your customers to fly your airline?
Airline exec: Erm…I’m not sure.
SN: Hmm…is there someone front-line I can speak with who’d know, like the check-in staff, or flight crew?
Airline exec: Actually, the airport crew is outsourced, so we have little inputs, and it’s logistically tough to reach out to the crew.

What fascinated me the most were two things. One – I was talking to a (very) senior executive who didn’t know what, beyond price, attracts his customers. And secondly, the fact that the airport crew is outsourced may be a short term gain ($$ savings) but a long term loss due to the lack of front line inputs.

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Twitter to the rescue! Tweet. Tweet.

But market research need not be that difficult. Especially when tools like Twitter exist these days, which allow you to connect with anyone – inside or outside your company – to seek opinions, cheaply and in real-time. Twitter is the in-thing these days. An article in Forbes last week urged CEOs to tweet actively. Addison Schonland from IAG had an insightful podcast featuring three kings of airline twittering – Southwest, JetBlue and Alaska. And just yesterday, “Flying with Fish” blog wrote an article on the topic too. So, what’s the fuss all about?

An airline executive I met for lunch earlier this week in New York City told me that she doesn’t have the money or resources to spare for a dedicated effort like Twitter. Unless, it somehow could be linked to revenue. That got me thinking. And here’s what came out – three ways of driving revenue from Twitter for airlines.

1. Special discounts on Twitter – acquire new fliers

Dell recently reported that it made $1 million off Twitter last year by releasing special offers to its followers. Those are some of the first ROI figures coming out of corporates on Twitter. That means, airlines too can make money by releasing special deals on Twitter before releasing them elsewhere. It’s real-time. It often goes viral if done right. And it’s simple and cheap too. This way, they increase their “catchment” area to people who would have not gone on their website or not be on the mailing list for automatic notification of offers.

2. Nurture existing customers into loyal fans – fly more often

Twitter is great when it comes to building relationships. I was speaking with Morgan Johnston (@jetblue) when he gave me a tour of JFK T5, and he mentioned that Twitter is a chance to connect with individual customers on a personal level. It’s not the airline press release that’s coming out on Twitter, but a person communicating with another in short blurbs. Add to that the power of DM (direct messages) and you have a platform for developing first time fliers into your loyal customer base, by constantly interacting with them, seeking their feedback and answering their queries.

3. Empower them to spread the word – backbone of Web 2.0

Web 2.0 puts word of mouth marketing on steroids. If someone feels that RT (re-tweeting) something will add value to his “followers”, then he will do it. That means a whole lot of exposure for the initial messenger. If airlines can keep addding value to their customers through Twitter, they will share these stories (not just links) with their friends, especially when asked about it. So, it boils down to empowering the user to spread the word. And this is done by adding value to them, not just trying to push sales.

Overall, I feel Twitter is a great medium for airlines to tap on. Due to the fluctuating nature of the industry. Everything from weather related delays to baggage losses can be reported on Twitter and personal questions answered in real-time. And when it’s linked to revenue, I’m sure things can work out sooner than later. What are your thoughts? Do you think airlines should invest in Twitter, and in these conditions? Let’s hear it in the comments section.

P.S: If you’re keen on learning how airlines are implementing Twitter, I highly recommend listening to the podcast on IAG, and also, I’d encourage you to follow me on Twitter (@simpliflying)

Aviation Nerds: Why We Stink

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Today’s post comes from Martin Rottler.

My name is Martin Rottler, and I am soon becoming an endangered… one of those people with an unbridled passion for aviation, airlines and flying. It’s a sad fact of the way aviation and airlines are perceived today, especially amongst this country’s future generations: high school students. This is so much so, that an annual career interest inventory survey of high school students lists interest in aviation and flight careers at a nearly all-time low. According to the FAA’s industry forecasts, the number of certificated pilots in the US is expected to drop over the next few years. Why is this the case? What happened to the glamour, the fun, and the wonder of flight?

For as long as I can remember, I’ve been obsessed with the world of aviation and flying. It’s been a fun and slightly strange obsession—7th birthday party at the now-demolished Stapleton International Airport in Denver (including a full tour for the entire cadre of 5, 6 and 7 year olds of a Continental Airlines 737…those were the days!), first time flying a small airplane on the day after my 11th birthday, deciding to attend an Aerospace camp at the University of North Dakota not once, but twice, and soloing a Cessna 172 on the morning of my 16th birthday even before I picked up my driver’s license from the DMV.

I’m lucky—I was hooked on aviation and flying early thanks to the aforementioned intro flight as an 11 year old. A quote from my mom on that momentous day, caught on video perfectly sums up the significance of that fall morning: “Well…we’re either creating a monster…or burying one.” From that day on, the monster idea of one day earning my pilot’s license was all but cemented in my mind. Five years later, I soloed. A year and a half after that, my dream of being a Private Pilot came true. Two years after that, on a bitterly cold North Dakota day, I earned my Commercial Pilot certificate with instrument and multi-engine ratings at the University of North Dakota. The next year I would put those privileges to work as an intern for a major aircraft manufacturer.

I am an example of an introduction to aviation gone right. I’m sure many of you reading this blog today have similar stories and experiences. Think for a moment, however, about just how you got into the hobby or career. Was it the result of an educational program, or your own persistence and perseverance? Did it require supportive parents and colleagues, or were you mentored on your way through other means?

For the most part, we as aviation nerds, suck at bringing new people into our own ranks. We do strange things (mileage runs? flight simulators? aerobatics?); speak our own language; and spend most of our time talking amongst ourselves. Outside forces contribute to this downtrend in aviation nerd-dom. Degradation of airline service and pilot/crew pay has made young people realize that the once-glamorous job of airline pilot is history. The recent Colgan crash only highlighted the challenges regional airline pilots face. Increased (and in my opinion, often unneeded) security makes the travel experience tedious. Gone are the days when a parent could take their child to the airport to ride the trains and look at airplanes up-close at the gate (no joke—this was a fixture of elementary school for me here in Denver). Business aviation is under fire from the major media and the non-flying public who are ignorant to its benefits and just how far “biz av” reaches in the aviation spectrum. Aviation fuel costs have skyrocketed, making flight training more and more expensive, and as a result, inaccessible for many. A four year degree at a major aviation university will now set a student and their families back six figures, even at schools with reasonable tuition.

The obstacles facing potential aviation geeks today are many. What are those of us with aviation geek badges-of-honor doing to facilitate these virgin nerds into the world of aviation? I see one (unwritten) responsibility of my pilot’s license is to serve as an ambassador of aviation and flying to the public. During the aforementioned internship, I had the opportunity to provide 30 introductory flights to people from the community in which I worked. These were awesome opportunities to not only introduce the airplane in which I was lucky enough to fly, but to also plant the seeds of aerodynamics, airlines, and the licensing process in my passengers. I received several follow-up letters and e-mails from these passengers expressing a future interest in flying, especially amongst the younger passengers I had on board. I can attribute one flight to my own aviation monster creation, and it was my goal that I reciprocate the same experience for others. Here’s the only problem—aside from the EAA Young Eagles program, there are no widely established opportunities to provide an introduction to aviation. United Airlines used to open up their simulators in Denver to the community two days a year. After 9/11, this open house was cancelled. We need to be doing a better job as pilots, airlines, hobbyists and industry professionals at reaching out to our respective communities. Through formal and informal educational experiences, we can do a better job at enabling young people to experience the awesome world of aviation and flying. This can only be done with the efforts of the entire community. Invite someone to go flying with you; show them Microsoft Flight Simulator; drag them along spotting; make them experience a mileage run to Europe in one weekend. Sure—some people just aren’t interested in some of the crazy things we do. You’d be surprised at how many out there are.

Frequent Flyer Programs: A Blessing or a Curse?

I’m currently on vacation, but I’ve asked a few friends of mine to write some guest posts for while I’m gone. Today’s post comes from Ben from One Mile at a Time.

As anyone that reads my blog knows, I’m a complete miles and points junkie. I love the airline industry as a whole, but in particular am fascinated by the frequent flyer side of things. While the history of frequent flyer programs isn’t quite as extensive as the airline industry, it goes back to 1981, when American launched the first frequent flyer program, AAdvantage, which was followed quickly by United’s Mileage Plus program and Delta’s SkyMiles program. So yeah, United following American to a “T” isn’t a new thing. ;)

There’s no doubt that as consumers, frequent flyer programs are a great thing. Frequent travelers are able to turn their otherwise boring weekly commutes across the country into memorable first and business class award tickets to exotic destinations thanks to the miles they’re able to rack up. Furthermore, those commutes are made more comfortable by upgrades, priority check-in, priority boarding, etc. Simply put, it makes travel a bit more bearable in this era of heightened “security.”

But I do have to wonder, are frequent flyer programs really a good thing for the airlines? After all, first class is rarely paid for anymore, and passengers that would likely travel either way are getting all kinds of benefits. It’s tough to look back and definitively say whether or not they benefit the airlines, but nowadays it’s something they need to stay competitive. On one hand frequent flyer programs create loyalty, although in this day-and-age of mega-alliances, “loyalty” is a pretty loose term. Even if I want to credit my miles to United, I can fly dozens of different airlines based on which airline has the most convenient schedule or best product.

But what really makes these programs a blessing for the airlines, especially over the past decade, are the co-branded credit cards that have become popular. They have turned the frequent flyer programs from something required to stay competitive to a whole new industry. Given how most US legacy carriers have lost billions of dollars in the past few years, it seems like the frequent flyer programs are the only part of their operations that are profitable. Companies like Chase and Citi buy hundreds of billions of miles at a time from the airlines for billions of dollars, a lucrative transaction for both parties. Some airlines, like Air Canada, have even spun off their frequent flyer programs because they’re so profitable compared to the airline itself. I’ve heard people go so far as to say that the airlines exist solely for the benefit of the loyalty programs, and just happen to have 400 corporate jets. You know, they’re probably not so far off.

Perhaps it’s a sad reflection of the state of the airline industry, but as a consumer I’m not complaining. In a couple of weeks I’ll be flying to Tel Aviv in business class on Delta, and in a couple of months I’ll be going to Istanbul and Hong Kong in first class on a variety of Star Alliance carriers, all for next to nothing.