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American Airlines has finally decided to take advantage of the problems many United Airlines fliers have experienced since the merger with Continental Airlines was completed on March 3. In an extremely rare move, American is now offering conditions-free top-elite status match to United’s most loyal customers.
Having read and heard about many United customers’ troubles after the carrier adopted Continental’s reservations system — and having encountered some problems myself — I e-mailed American spokesman Tim Smith on March 16. Smith has been the best PR person to deal with at any airline since I started writing my column in the Washington Times in 2008. I asked him whether American had any intention of capitalizing on United customers’ dissatisfaction by stealing some of them away through a status-match offer.
He involved his colleague Stacey Frantz, who works directly with American’s AAdvantage program. She said she couldn’t comment on “marketing strategies,” but it was apparent from her and Smith’s messages that American wasn’t considering such a move at the time. More than a month later, however, it decided to follow my suggestion — not that I’m taking any credit.
When the promotion first started last week, elite United fliers at all levels were eligible, but on Friday, American decided to limit participation only to United Premier 1K members, the highest published level. A memo was sent out to customer service agents on that day. So if you are a 1K, you can get Executive Platinum status on American.
The carrier is not advertising the promotion, so you need to call AAdvantage Customer Service to request an e-mail outlining the offer. Status is valid through February 2013, and all you have to do is submit proof of your current elite status with United. On the rare occasions when American has offered matches in the past, it has extended challenges, meaning you had to fly a certain number of miles during a certain period to qualify. There are no conditions this time. Challenges to Executive Platinum have been even rarer than to other levels.
But is Executive Platinum better than 1K, and is American better than United? Let’s review.
Executive Platinum advantages
This is truly American’s top elite level. Concierge Key, the unpublished super status that George Clooney’s character had in “Up in the Air,” is awarded only by invitation to very few hyper-frequent and high-paying travelers. In contract, United’s Global Services status has been given to so many people — albeit still “by invitation” — that it has somewhat devalued the 1K level.
Executive Platinum members are the only ones eligible for complimentary domestic upgrades that clear as early as 100 hours before a flight — at United, all elite fliers are, and lower-level elites on full-fare tickets trump 1K members on discounted fares. United also aggressively sells domestic upgrades at check-in for as little as tens of dollars to non-elites, while elites linger on waiting lists. As a result, the upgrade rates for 1Ks have gone down significantly.
As for international — or systemwide — upgrades, American is much more generous than United. Executive Platinum members get eight of those so-called eVIP certificates each year, compared to six for 1Ks. More importantly, on American, they are valid on all published fares, while United excludes its five lowest booking classes — S, T, L, K and G — requiring at least W class. That means you need to pay hundreds of dollars more on W class, and if your upgrade doesn’t clear, you’ve wasted your money.
American has the best domestic First Class soft product. It’s the only airline to still use linens and menus during meal service, as well as pillows and blankets on transcontinental flights. United used to have linens, pillows and blankets before the merger with Continental, but it lost them. The food also tends to be better on American. Many of its domestic planes have no in-flight entertainment at all, though wi-fi has been installed on a big part of its fleet.
As an Executive Platinum, you get Emerald status on the global Oneworld alliance, which gives you access to First Class lounges on foreign Oneworld members, such as Cathay Pacific and Qantas. The Star Alliance has only two levels, instead of Oneworld’s three, so United Gold, Platinum and 1K members get the same access to Business Class lounges.
American has dedicated agents working on the Executive Platinum phone line, and they are not only the best trained agents in the airline industry, but also the ones given the most authority and discretion to help customers in any way possible, even if that means sometimes bending the rules. United’s so-called 1K Desk is not really a dedicated desk — those agents service all callers, but 1Ks get priority in the queue.
No one knows if any of the above might change as a result of American’s Chapter 11 restructuring or in a potential merger with US Airways, but this is where things stand right now. For me, American’s main disadvantages are the limits of Oneworld, whose size is about half the Star Alliance’s, the hefty fuel surcharges imposed on award tickets with British Airways flights, and those old McDonnell Douglas planes American still flies. In addition, if you live in a United hub, it might be hard to give up nonstop flights to many destinations in favor of connections on American. That said, American often offers very low fares out of United hubs, while United does the same out of American hubs.
Premier 1K advantages
United offers 1K members so-called regional upgrade certificates, which can be used to confirm an upgrade on North and Central American flights at the time of ticketing — just like using miles or systemwide upgrades. Unfortunately, this year, United reduced the regional certificates from eight to four a year. It also eliminated the two upgrades million-mile fliers used to get annually. It’s worth noting that the Executive Platinum exclusive perk of complimentary upgrades on American compensates for the lack of certificates to a large extent, though those can be confirmed only within 100 of departure.
United offers instant upgrades without requiring any “instrument” to 1Ks on domestic M fares — all elites get the same benefit on the higher Y and B fares — as soon as the time of ticketing. The inventory is controlled separately and is not the same as regular First Class availability (it books in PN class).
United waives same-day confirmed changes on domestic flights for 1Ks, while American doesn’t for Executive Platinums. United also waives award booking, change and redeposit fees on tickets issued with 1K members’ miles — regardless of who the passenger is. American does so only if the Executive Platinum member is the passenger.
United allows stopovers on round-trip international award tickets. American permits those only in U.S. gateways — the city where you leave or arrive in the United States.
The biggest advantage United has is its membership in the Star Alliance, which has 25 member-carriers, including some of the best in the world, such as All Nippon, Asiana, Singapore, Air New Zealand and Swiss.
The biggest problem with United is that its new management doesn’t value long-term loyalty nearly as much as American’s — or United’s previous leadership team, for that matter. Unfortunately, my prediction in 2010, based on warnings from departing United executives at the time, came true after the merger was finalized. The current management apparently cares much more about making a quick buck. It prefers to sell an upgrade seat from Seattle to Washington Dulles to a non-elite flier for $99, as reported on FlyerTalk by a passenger who took advantage of that offer, rather than give the seat to a 1K member who spends tens of thousands of dollars on United a year. So much for complimentary upgrades.
At the end of the day, the choice is yours. If I’ve missed anything on either airline, feel free to let me know.
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When I landed at Tokyo’s Haneda Airport today, I had one of my easiest, fastest and smoothest international arrival experiences. But I wondered where all those airlines that last year fought and won a fierce battle over the right to fly to Haneda actually were.
It appears the industry overestimated Haneda’s appeal to travelers, and it also might have miscalculated how many passengers remain in Tokyo, as opposed to those who connect to other destinations.
It’s true that the March earthquake and tsunami had a negative impact on travel to Japan in general, but traffic to and from the much bigger Narita Airport has largely recovered.
Haneda’s smaller size and proximity to central Tokyo provide a significant advantage. However, as I first wrote two years ago, most medium- and long-haul flights arrive and depart between 10 p.m. and 7 a.m. — not exactly the most preferred time by the majority of travelers. In addition, onward flight connections from Haneda are extremely limited.
That didn’t seem to bother most airlines last year, when the rights to fly from various foreign cities to Haneda were being awarded by the Japanese and other governments. U.S. carriers in particular made rather bold proposals. In the end, the Department of Transportation gave American Airlines the right to fly from New York, Delta from Detroit and Los Angeles, and Hawaiian Airlines from Honolulu.
American’s flights are nowhere to be found in its winder schedule, though they are planned for next summer. The same goes for Delta’s Detroit flights. It does operate the LA flight throughout the year, as does Hawaiian on the Honolulu route. Air Canada has postponed indefinitely its plan for flights from Vancouver, even though it started selling tickets late last year.
The Japanese carriers have trimmed their plans, too. All Nippon Airways has kept only LA in North America, while Japan Airlines serves San Francisco. European and other long-haul routes are also very few.
British Airways is the only foreign carrier outside Asia and the United States that currently flies to Haneda — and not every day. The Asian carriers include Air China, Asiana, Cathay Pacific, China Airlines, AirAsia, China Eastern, Eva Airways, Korean Air, Malaysia Airlines, Shanghai Airlines, Singapore Airlines and Thai Airways.
Flights loads to and from Haneda are not what those carriers expected — my Singapore Airlines flight was less than half-full in Economy and about two-thirds full in Business Class, where I had two lie-flat seats to myself, though even one would have been just fine.
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Should the new United Airlines have international first class, like the old United, or not, like the old Continental Airlines? Most frequent fliers expect a decision in favor of one of the two models, but why not go with a mixed model? Why not keep first class on routes where it makes business sense, and fly two-cabin planes where it doesn’t?
Since the two carriers’ merger was announced in May, there have been many opinions in online travel forums advocating just coach and business class, but it’s hard to see the world’s largest airline without long-haul first class at all. Continental may call its premium cabin BusinessFirst, but it’s business class.
In addition, United has already installed new first- and business class seats on more than half of its wide-body fleet, and it makes little sense to now remove first class and expand business class.
Regardless of the mechanics, there are routes that can sustain first class and actually make money, especially now that business travel has recovered from the slump during the global recession. Wouldn’t it be a luxury for United to pick and choose the routes on which it operates three-cabin planes and even change them seasonally?
Many foreign airlines have flown both two- and three-cabin aircraft on long-haul international routes for years, including United partners in the global Star Alliance, such as Lufthansa, Thai Airways and Asiana Airlines. In fact, Asiana currently flies one two-cabin and one three-cabin plane daily between Seoul and Los Angeles. In the Oneworld alliance, British Airways, Cathay Pacific and Qantas use a mixed model.
If you look at the loads in both first and business class on all those carriers, you will discover that they are selling extremely well — many flights in the next few weeks are actually sold out. As I reported last year, the recession forced some airlines to cut back on first-class service temporarily, but things now are very different.
So let’s not count United’s first class out quite yet.
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Global airline alliances are a relatively new concept, and the three existing ones have naturally had to create their own rules. This week’s Mexicana Airlines decision to suspend ticket sales raised serious questions about Oneworld rules and requirements.
Why did the alliance insist publicly that all was fine at Mexicana just a day before the announcement? Did the carrier fail to give Oneworld a proper warning?
On Tuesday, Mexicana filed for insolvency proceedings in Mexico and bankruptcy protection in the United States. That same day, Oneworld spokesman Michael Blunt issued a press release, assuring travelers that the Mexicana’s position in the alliance was “unaffected” by the developments.
“Mexicana has stressed that it will continue to operate normally, in line with Mexican legislation covering such restructurings. Its schedule is being maintained — though with some network and frequency changes — and it continues to take bookings and offer its full range of services. So the airline continues to offer full Oneworld services and benefits, and tickets for flights on Mexicana and its frequent-flier arrangements are unaffected,” Blunt said.
That statement reminded me of the Star Alliance’s expression of support for United Airlines when it filed for Chapter 11 bankruptcy protection in 2002. But as it turned out, things with Mexicana were very different.
Late Wednesday, Mexicana stopped selling tickets. In a new press release, Oneworld called it a “temporary suspension,” adding that, “during this time, Mexicana will continue to operate most of its previously scheduled international flights as normal, but further bookings will not be accepted.”
The logical question is, How long can the airline continue to operate flights for which it accepts no bookings? More importantly, was Oneworld blindsided by the sales suspension or did it mislead customers in its first statement? Did Mexicana bother to tell the alliance what was coming up? Was it even required to do so by Oneworld rules?
Blunt didn’t respond to an e-mail I sent him yesterday with those questions.
Mexicana is Oneworld’s 11th and newest member, having joined in November 2009. Among the alliance’s other members are American Airlines, British Airways, Cathay Pacific and Qantas Airways. Mexicana was part of the Star Alliance from 2000 until 2004. Interestingly, Star’s CEO, Jaan Albrecht, is a former Mexicana pilot.
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Have you flown in business or first class lately? How many empty seats did you count? With so-called premium traffic falling faster that airlines can cut capacity, what should they do with the growing number of unsold seats?
Should they drastically lower the high prices they charge for them? Should they open up more seats for mileage redemption? Or should they offer free upgrades to their most loyal customers?
First and business-class fares have come down somewhat, but a wide dramatic decrease is yet to be seen. Many carriers have spent hundreds of millions of dollars in recent years to install expensive lie-flat seats and entertainment systems, so they rightly want a return on those investments. At the same time, isn’t charging $3,000 instead of $8,000 for a seat better than having that seat remain empty?
