SkyMiles members gain new industry-leading benefit
News Release Issued: February 15, 2011
ATLANTA, Feb. 15, 2011 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today announced it has eliminated the SkyMiles mileage expiration, creating a new industry-leading benefit for all members. This program change is effective for all accounts as of Jan. 1, 2011, and makes Delta the only major U.S. carrier without mileage expiration.
Previously, miles expired 24 months after a member's last qualifying mileage activity, which required a member to earn or redeem miles within that period.
"Now that our massive frequent flyer program integration is complete, we are focused on smart ways to improve the SkyMiles program for all members," said Jeff Robertson, Delta's vice president – SkyMiles. "We know how much customers value their miles, so eliminating mileage expiration is a major win for them. This is yet another benefit that sets us apart from the pack, making Delta a clear leader in loyalty program benefits."
SOURCE Delta Air Lines For further information: Delta Corporate Communications, +1-404-715-2554
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Air travel would cost more under White House budget
President Barack Obama's budget proposal for fiscal 2012 includes an increase in the "passenger facility charge," which finances airport projects. The fee has a maximum rate of $4.50 per flight, but the White House wants to increase the cap to $7. The increase is being proposed to offset cuts to airport grants, but House Republicans have voiced opposition, and airlines said the move would amount to a $2 billion tax increase. The Washington Post/The Associated Press (2/14), USA TODAY (2/15), Aviation Daily (2/15), Bloomberg (2/14)
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Record cancellations show change in airline strategy
Since Nov. 1, about 86,000 flights have been canceled by winter weather -- and, experts say, by the airlines' more cautious policies. While airlines used to keep a flight on the schedule and hope for the best, they are now more likely to cancel ahead of time, allowing passengers to re-book without penalty. "Our philosophy is that if Mother Nature is going to win, let her win, and live to fight another day," says Rob Maruster, chief operating officer of JetBlue Airways. A new rule imposing heavy fines for tarmac delays of more than three hours also could be forcing the airlines to cancel flights further in advance of an impending storm. "With this rule, it is not worth the risk of having an aircraft on the ground," says analyst Robert Herbst. The New York Times (free registration) (2/14)
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Delta lifts expiration date for infrequent SkyMiles members
Delta Air Lines announced Tuesday that frequent flier miles will no longer expire after 24 months with no activity. "We know how much customers value their miles, so eliminating mileage expiration is a major win for them," said Jeff Robertson, Delta's vice president for SkyMiles. Experts say Delta's move could pressure other airlines, where miles typically expire after 18 to 24 months of inactivity. The Dallas Morning News (free registration) (2/15), The Wall Street Journal/The Middle Seat Terminal blog (2/15), The Atlanta Journal-Constitution (2/15), CNN (2/15), AOL Travel (2/15)
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Delta invests in an image makeover in Asia
Delta Air Lines believes its $2 billion facilities investment will help it compete with the top-tier airlines in Asia, a crucial and fast-growing travel market. Renovated airport lounges, upgraded BusinessElite seats and a new premium economy section will help position Delta as a premium brand, says Vinay Dube, Delta's senior vice president for the Asia Pacific. In recent years, "We haven't had the cash flow to invest," he told reporters in Tokyo. "Now we do." The Washington Post/The Associated Press (2/17)
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New York-area airports are praising an administration proposal to allow a 56% increase in passenger facility charges, arguing that the money is needed to replace aging terminals at LaGuardia and Newark airports. The increase would be "an essential step to making certain we can continue to invest in critical airport improvements that will increase safety and decrease delays," said Christopher Ward, executive director of the Port Authority of New York and New Jersey. But travelers groups and the Air Transport Association warned that more fees would reduce the demand for air travel. "We believe our passengers are already overburdened," said an ATA spokeswoman. "A typical $300 domestic round-trip ticket includes some $60 in taxes and fees." The Star-Ledger (Newark, N.J.) (2/16), The Wall Street Journal (2/17)
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United says Economy Plus is here to stay
Starting next year, all of Continental Airlines' mainline jets and many of its larger regional aircraft will be retrofitted with several rows of roomier economy-class seating. The product, known as Economy Plus on merger partner United Airlines, is a favorite of frequent fliers, and Thursday's announcement was greeted with relief in some quarters. "Whew," said aviation consultant Michael Boyd. "That's what you're hearing both outside and inside United. There are a lot of frequent-flier members who were genuinely concerned." When the transformation is completed, United will offer about 40,000 Economy Plus seats throughout its fleet. Chicago Tribune (2/18), The Wall Street Journal (2/17), USA TODAY/Today In The Sky blog (2/17), Bloomberg (2/17)
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Airplane air isn't bad for you -- but carry hand sanitizer, anyway
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Delta added 1,300 employees in 2010
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Air France-KLM and Delta Air Lines reportedly are striving to persuade Virgin Atlantic to join the Skyteam airline alliance. "Virgin Atlantic is a strong, independent business with a good growth position at both London Heathrow and Gatwick [airports] so we are not surprised that there is interest in us," Virgin said in a statement. Founder Richard Branson continues to hold a 51% stake, while Singapore Airlines owns the other 49%. Reuters (2/20)
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Regulators put Delta and US Airways slot deal in holding pattern
Regulatory concerns have impeded talks between Delta and US Airways over takeoff and landing slots, a Delta executive says. The companies are trying to hammer out a deal to exchange dozens of slots at New York's LaGuardia and Washington's Reagan National airports. A previous agreement was struck down following objections from rival Southwest Airlines. Bloomberg (2/23)
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Delta buys Heathrow slots to boost U.S.-London service
Delta is boosting its service across the Atlantic after acquiring new slots at London Heathrow. The slots were given up by British Airways and American Airlines as part of their recent partnership agreement. Delta will use the slots to add three U.S.-bound flights per day and plans to increase service to Miami and Boston next month. The Wall Street Journal/Dow Jones Newswires (2/23)
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Concerns that issues in Libya could spread to Saudi Arabia and other major Middle Eastern oil producers caused the cost of oil to increase 7.5% today. Brent crude futures for April reached nearly $120 a barrel and then dropped back to about $114. The revolt in Libya has cut the country's daily output by at least 25%, according to calculations by Reuters. With current jet fuel prices, fuel now accounts for about 40% of airlines' costs, up from about 30% in 2010. Some airlines hedged their fuel purchases to protect against price surges. Reuters (2/24), All Headline News (2/24), The New York Times (free registration) (2/23)
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The Dallas/Fort Worth Airport has begun the first phase of its $1.9 billion project to renovate its terminals. Work will focus on existing electrical circuitry, air conditioning and heating systems, concession areas and interior accessories. The project, which will be done in phases to minimize inconvenience, is slated for completion in 2017. Fort Worth Star-Telegram (Texas) (2/23)
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Congress considers flight curfew for airports near Los Angeles
Three California congressmen have introduced a measure that would impose a 10 p.m. to 7 a.m. curfew at two airports in the Los Angeles area. Officials in Burbank and Van Nuys have long sought such a ban, but the FAA has denied their requests on the grounds that restricting night flights would cause delays throughout the system. The new bill submitted to the House Committee on Transportation and Infrastructure would amend a 1990 law cited by the FAA in denying previous curfew requests. MSNBC/The Associated Press (3/1), Contra Costa Times (Walnut Creek, Calif.) (3/1)
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Delta: Profit sharing for flight attendants based on existing contracts
About a half-dozen flight attendants have sued Delta Air Lines claiming "Delta management withheld higher profit-sharing checks from over 7,500 pre-merger Northwest flight attendants based solely upon their prior union membership." Last month, Delta announced profit-sharing incentives amounting to about 6.5% of annual pay for its legacy flight attendants, while former Northwest flight attendants got about half as much. Delta says the payouts were based on existing contracts, and it has "no choice" but to honor those agreements until Northwest unions drop their obstruction efforts and allow all flight attendants to work under a single contract. Bloomberg (3/2), The Wall Street Journal (3/3), The Atlanta Journal-Constitution (3/2), ABC News/The Associated Press (3/2)
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Forecast: Airline profits could fall 50% in 2011
Worldwide airline profits could fall by about half this year as soaring oil prices add billions of dollars in overhead. A global trade association now anticipates combined profits of $8.6 billion in 2011, down from a previous forecast of $9.1 billion. North American carriers are estimated to deliver $3.2 billion in profit, unchanged from the previous forecast and down from $4.7 billion profit of 2010. Reuters (3/2), Bloomberg (3/2), Los Angeles Times (3/3)
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Column: Answering the critics in the debate over lap children
After Bill McGee wrote that young children should be strapped into a separate safety seat when flying -- and not held on their parents' laps -- he says many readers responded to defend the status quo. Many of the arguments revolved around statistics, physics, economics or political philosophy, and in this follow-up column, McGee seeks to address each of those concerns. USA TODAY/Travel (3/2)
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Tier status, credit cards help frequent fliers get more for their miles
Airlines are getting increasingly creative in the goodies they offer to frequent fliers, writes columnist Scott McCartney, but the "price" of their offerings can vary widely. Frequent fliers can use their miles for hair transplants, sports tickets and gambling chips, as airlines seek to offer more redemption options beyond the typical travel rewards. But different members are charged different point levels in order to redeem the same reward, McCartney points out. Among the two biggest factors influencing the price of a reward: A member's tier level status and whether he or she has an airline-branded credit card. The Wall Street Journal (3/3)
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As overhead space fills up quickly and more travelers are forced to gate-check their bags, airlines are responding by renovating their bins to accommodate more bags. Airplane manufacturers are building planes with greater storage space, but deliveries are still several years away. So airlines are turning to companies such as Heath Tecna to expand the bins on their current aircraft, to help keep passengers and reduce delays at the gate. The Vancouver
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