Singapore Airlines Archives | Page 3 of 3

Airlines want budget, premium fliers

Can an airline be a low-cost carrier, nickel-and-diming most of its passengers, while offering luxury to a few others and charging them $15,000 for it? And is that an “all things to all people” model or a version of “divide and conquer”?

Executives at the so-called legacy carriers know that a huge part of their revenue comes from passengers who pay for business and first-class tickets, so they are trying to keep them happy by installing flat beds, upgrading entertainment systems and serving gourmet meals. However, airline chiefs also realize that most people on their planes sit in coach and can’t afford $7,000 to fly to Europe in business class. Because economy passengers pay what the airlines consider low fares, carriers are trying to minimize the costs associated with carrying those fliers…

United yields on award blocking

How easy is it for an airline to make its loyal customers happy? Just ask United Airlines. The members of its Mileage Plus program have been happy campers for 10 days, spending their frequent-flier miles like there is no tomorrow.

Many of those travelers waited for that opportunity for months, if not years. They had joined Mileage Plus and mounted sizable accounts with the assumption that they would be able to redeem their miles for flights on the Star Alliance, the global network of 24 carriers of which United is a founding member. But often in the past few years, when they tried to book “awards” on Singapore Airlines, Germany’s Lufthansa or Asiana of South Korea, among others, finding availability was a Herculean task. Many travelers were angry…

Airlines curb award tickets

As if “award” plane tickets aren’t hard enough to come by, airlines are putting even more controls on those coveted seats — in some instances understandable, but in others apparently artificial and questionable.

Most major U.S. carriers are reporting record numbers of issued mileage tickets, but they are not a result of more available seats so much as more passengers rushing to beat rises of redemption mileage levels. As I wrote three weeks ago, the value of frequent-flier miles is dropping, and the airlines want them to be used up because they are a balance-sheet liability. With most carriers’ domestic capacity shrinking between 5 percent and 16 percent this fall, the number of mileage seats will naturally be reduced as well…