Mike FriedmanEvery once in a while, I like to take a step back from the miles/points aspect of the business and see what else is going on in the world of travel. Inevitably, there’s something interesting, funny or crazy going on in the industry.
The Man With The Golden Airline Ticket
No, it’s not Willy Wonka. Rather, the article about the man with the golden ticket is the story of Steven Rothstein, who paid $250,000 in 1987 for the ultimate airline perk: free first class flights anywhere that American flies, for the rest of his life. Two years later, he added a companion pass for “only” $150,000.
The story, ultimately a sad one, traces Mr. Rothstein’s use of the pass and his battles with American after they confiscated it. But the emphasis on his relationships with airline employees and sense of freedom that he got make it as much a human interest story as a travel one.
Airline Earnings
Once per quarter, the publicly traded airlines hold a conference call to announce their earnings to the world and take questions from Wall Street analysts. Inevitably, Delta boasts about its performance, Doug Parker sounds despondent and the CEOs tell us that their tens of thousands of employees (right before they brag to the analysts about their cost cuts). Here is some of what we heard this quarter:
- Loser of the week goes to Spirit Airlines, whose stock dropped 20% in a day after its report disappointed investors. The airline blamed rising costs for its outlook, but I like to think that they are anticipating lower fee revenue as a result of our article on beating the ultra-low cost carriers.
- The 737 Max was the big story, though, impacting multiple airlines. With the airplane grounded, several airlines saw higher costs and Southwest announced its permanent departure from Newark, an airport that probably wasn’t a good fit for the airline, anyway. Boeing, the manufacturer of the plane, has seen its stock decline 10% since it reported this week.
To Carry On Or Not To Carry On
One of the true nuisance fees in the industry is the checked baggage charge. There are certainly ways around it, but just as many people pay their $25+ to make sure that their luggage reaches its destination. CNN Travel was good enough to share a couple of opinions about the topic.
Airlines have the right to charge whatever they want for their services, and if we don’t like it, well, too bad. But when they complain about how long boarding takes because of all the carry-on bags, they only have to look in the mirror to determine who is at fault.
Honorable Mentions – The World Of Travel
- If you buy travel insurance, be sure to check the exclusions built into the terms and conditions.
- Air Koryo, North Korea’s flag carrier, will begin flying to gaming mecca Macau, starting in August. I have a friend who traveled to North Korea just so he could fly the airline. The only surprise was that he didn’t get himself arrested.
