We know that overall passenger numbers are, for very good reason, down massively. But airlines have relied on their loyalty programs to provide a significant, and perhaps more importantly steady, stream of revenue for the operations. So, as the airlines use those programs to collateralize billions of dollars in new financing, it is worth considering if that revenue flow is as reliable as airlines (and debt holders) hope it can be.
loyalty
The Weekly Wrap: GX+ North America and Spirit’s New Loyalty Program
In this edition of The Weekly Wrap we’re chatting with Philip Balaam, president of Inmarsat Aviation, about the company’s tie-up with Hughes to create a new in-flight connectivity solution, GX+ North America. Plus FreeSpirit, OpenIFC, and showers in the sky.
A brand new FreeSpirit loyalty program launches
It is time for the Spirit Airlines loyalty program to grow up. And the new version launching today appears to be far more rewarding, or at least it holds that potential.
Delta Air Lines makes most domestic SkyMiles awards fully flexible
As the US carriers continue to tweak their new “no change fees” policies Delta Air Lines made a major move for its SkyMiles members. Effective immediately most domestic SkyMiles awards will be fee-free for changes or cancellation. SkyMiles rewards are now a spectacularly flexible method for booking travel on Delta Air Lines.
Southwest Companion Pass promotion pushes winter travel
Typically reserved for its most frequent flyers, Southwest Airlines is now using its Companion Pass program in an effort to drive bookings in the near term. The carrier launched a promotion this week where a single trip in the next 60 days can earn the pass for the first two months of 2021. This is, by far, the biggest promotion the company has run with the Companion Pass.
Thai Airways bankruptcy petition accepted by Thai court
Thai Airways officially entered its bankruptcy reorganization on Monday. The carrier’s petition for rehabilitation, filed on 27 May 2020, was granted by the Central Bankruptcy Court on 14 September, allowing the company to proceed with its recovery plans.
AirAsia pivots away from its airline roots
“We have successfully pivoted from an airline to an all-in-one digital lifestyle company anchored on travel.” This was the key message delivered by AirAsia Group CEO Tony Fernandes as part of the company’s Q2 financial results that showed a 96% drop in quarterly revenue. Airline-related revenue dropped 98% while non-airline revenue, a much smaller portion of the company’s operations, dipped only 55%.
A peek into the new Aeroplan program from Air Canada
Air Canada finally unveiled details of its new Aeroplan program, following two years of planning. And, if nothing else, the loyalty program reflects on its creators. That appears to be a good thing for consumers, at least given the initial information released today.
United adds domestic lounge benefit for Global Services members
United’s top frequent fliers just scored a nice improvement to their travel experience. The company’s Global Services members will have access to United Club lounges when traveling on domestic itineraries starting in January 2021. The announcement is the latest play to secure the loyalty of the carrier’s high value customers.
Spirit offers 5x bonus miles for new bookings
Ready to earn 5x points on your next flight? Spirit Airlines is the latest carrier to use its loyalty program as an enticement to get people thinking about travel again.
But that doesn’t necessarily make it a good idea.