- Highlights
- Full Text
Keywords:
[0:08] ..." on Northwest Airlines and their news that. They have another round of layoffs probably about 8% of the workforce. But also that affects every -- northwest and that is higher fees what are they announcing"...
[0:26] ..." For example they've adopted the first bag charge of fifteen dollars an American United US Airways were they doing but they do it effective tomorrow. For travel a month from now the other airlines gave you -- little"...
[1:09] ..." think the legacy carriers being you know United American and northwest US Airways. Are simply not prepared to supply in the market we've been seeing generally but certainly not in the market where. Fuel was"...
[2:20] ..." such things receive an Award. Obviously with all the fees and the surcharges and the taxes on the frequent flier awards the free has gone out the window. But these programs Anthony and this has"...
[0:00]" Hi this is Joe particularly the editor Joe sent me the business travel web site."
[0:04]" It's always a pleasure talking future -- putting the stuff in perspective. -- we're focusing on Northwest Airlines and their news that. They have another round of layoffs probably about 8% of the workforce. But also that affects every -- northwest and that is higher fees what are they announcing today."
[0:21]" Well it's not so much what they've financed companies to speed with which they're going to impose. For example they've adopted the first bag charge of fifteen dollars an American United US Airways were they doing but they do it effective tomorrow. For travel a month from now the other airlines gave you -- little more notice. They also upped the change see 250 dollars with absolutely -- notes. And they're adding -- scenes so that its guarantee you can never ever -- frequent flier awards even more. -- now pay between 25. And a hundred dollars for the privilege of claiming that awards -- and of course they claim its fuel surcharge so apparently. All these miles you've saved up or could proceed but not good for the fuel."
[1:05]" This just changes the playing field so dramatically."
[1:08]" Oh absolutely and I think the legacy carriers being you know United American and northwest US Airways. Are simply not prepared to supply in the market we've been seeing generally but certainly not in the market where. Fuel was running at a 13240 dollars a barrel there's a thing called the cracks. Which is not a drug -- thing but it's something to do with how much more to actually question refine the barrel. They're all far behind be able an airline like southwest still buying fuel. 51 dollars a barrel and even jetBlue that has more simplified streamlined structure. So as has always happened in one of these oil fuel panics Anthony -- airlines that's upon. Well and grow in the business cycle turns up tend to be the southwest and jetBlue -- at the expense of the old voluntary we -- for years."
[2:02]" Let's take a look at the frequent flyer miles I mean for years people using those credit cards to. Get frequent flier miles for free flights it seems that three flights are going to become a dinosaur."
[2:12]" What you'd you'd need to know two things about frequent flier programs before you can even discussed -- once they're not frequent flier programs anymore and two there's no such things receive an Award. Obviously with all the fees and the surcharges and the taxes on the frequent flier awards the free has gone out the window. But these programs Anthony and this has been yours. Are not a -- frequent flying -- about travel marketing in fact general marketing cause they'll sell you anything credit cards. You know flowers and their goal was to get -- change your buying patterns in exchange for --"
[2:46]" So obviously the the whole program. It is no longer attractive."
[2:51]" It's it's certainly -- for the average traveler. It is certainly losing its ability to -- Attention now there's always going to be stupid customer resonant -- And for the truly frequent flyer there are programs within the programs -- levels they do still keep you privileges rather -- freebies. And that's an that's an attractive you're on the -- to. But it notebook and a frequent travel plans you cannot look at them as a free lunch -- won't won't be free and be you're paying for it. A lot of money in some other way."
[3:25]" What does this tell you about northwest's decision. To make these changes effective immediately."
[3:31]" They weren't paying attention. That's why they had to do it faster than than the other guys were announced earlier the other thing is northwest and delta aren't unique situation. They're trying to merge and they told the world. And specifically the government that nothing would change under mergers and so they've had to be slow so I assume that once northwest now says that they won't let it be. On things delta will follow suit on first bags. So so northwest and delta and unique situation could -- busy trying to convince the government that all would be grateful we let us march and the more they do make customers unhappy. The more the government might say you know really maybe you shouldn't be hurt"
Del.icio.us
Digg
Reddit
