How airlines could make more money

Even as most flights are packed these days, some planes still take off with plenty of vacant seats, including in First and Business Class, effectively losing the airlines hundreds of thousands of dollars. Offering lower last-minute fares on undersold flights seems a logical solution, and carriers do it sometimes, but those attempts are utterly insufficient.

Let’s look at a recent international flight — most U.S. airlines give away free upgrades on domestic routes to fill their premium cabins. I picked a United Airlines flight on a route with traditionally heavy demand in Business Class: San Francisco to Sydney. As the above image shows, on June 19, that Boeing 747 left with 18 empty seats in Business Class, including on the upper deck.

The lowest Business Class fare on United on that route is — and has been for some time — about $6,400, which requires a 50-day advance purchase. If bought at least 21 days before departure, a ticket costs about $9,800, and about $12,300 at least three days in advance. The lowest last-minute fare is about $12,800. You do the math to figure out how much money United lost as a result of those 18 unsold seats…

Diplomats decry new United pet policy

Nearly 3,000 U.S. diplomats have urged United Airlines to extend to them a waiver from its more expensive and “unfriendly” new pet travel policy that the carrier has granted the military, the diplomats’ union said. While it took United just days to exempt the military, it has been mulling the State Department’s request for weeks.

The biggest hurdle appears to be the lack of understanding by United’s management — as is the case with most people — what the Foreign Service does, and why diplomats’ service to their country is no less important than the military’s. That’s exactly why — long before this issue arose — I decided to write my upcoming book “America’s Other Army“…

Did United choose the best rez system?

The decision by United Airlines’ management to use Continental’s Shares reservations system for the merged carrier has been causing serious problems since its implementation last weekend. So the news that the airline is working on a new version of its IT platform, integrating some of the features of the pre-merger United’s Apollo system, is very welcome, indeed.

It was hardly surprising that CEO Jeff Smisek and his team chose to keep Shares, given that most policies and practices of the combined carrier have followed the way Continental did business under Smisek. But in this case, the decision made good financial sense — Continental has owned Shares for years, while United paid Travelport, the company that owns Apollo…

United, Continental execs at odds over loyalty program

The management teams of United Airlines and Continental Airlines have never seen eye to eye when it comes to customer loyalty, and that seems to be causing trouble during their merger preparations. My inside sources tell me that Continental executives don’t quite understand United’s big emphasis on loyalty in recent years.

It also appears that Jeff Foland, who last week was named head of the combined carrier’s frequent-flier program, Mileage Plus, will have a tough job selling United’s current philosophy to his new bosses in the Continental team, which will run the company once the merger is completed, most likely around year’s end…