Debt backed by Frequent Flyer Programs

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According to CNBC, American Airlines is planning to issue $5 billion in bonds and seek a $2.5 billion loan backed by its frequent flyer program to pay back some of its debt used to help survive during the COVID crisis. Questions: How do airlines make money from their frequent flyer programs? What is the loan… Read more »

Jet Blue’s Trans Atlantic Feature

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According to CNBC, JetBlue is revamping its Mint cabin to feature suites with sliding doors. Questions: This is JetBlue’s first major redesign since what date? What type of jet will be equipped with the suites? How many mint suites will the planes have? When will the suites debut? Source: Josephs, L. (2021). JetBlue reveals suites… Read more »

Wheels Up and its New Deal

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According to CNBC, private jet company Wheels Up is merging with a special purpose acquisition company to go public at more than $2 billion, which is more than twice its 2019 value. Questions Which company has an equity stake in Wheels Up? How many people flew with Wheels Up last year? Where has Wheels Up… Read more »

United Airlines’ Collective Sacrifice

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According to the New York Times, members of the United Airlines pilots’ union agreed to a collective sacrifice to prevent the airline’s 13,000 pilots from being furloughed until June 2021. Questions: As a contract agreement looms, how many jobs are United Airlines and its pilots’ union planning to save? How much money did the passenger… Read more »

Sometimes Things Don’t End Up the Way they are Planned

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According to the New York Times, Delta Airline’s foray into oil refining in 2012 illustrates some of the reasons that the business was in trouble even before the pandemic. Questions: What was the bold experiment that Delta Air tried? What were the flaws in Delta’s strategy? What is the most immediate concern of the refinery… Read more »

Hey Top Spender!

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According to The New York Times, with travel dropping to near nothing and no resumption in sight, major airlines and hotels are offering their highest-spending customers many perks. Questions: What do these perks include? According to the President, the economy is going to bounce back to 2019 levels by the end of 2020. What do… Read more »

Change in Management

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According to the New York Times, Boeing fired its chief executive officer, Dennis A. Muilenburg, on Monday after investors became weary of Muilenburg’s clumsy handling of the 737 Max crisis that angered lawmakers, airlines, regulators, and victims’ families. Questions: Who is going to replace Muilenburg? When do the Boeing Board and Washington insiders typically meet… Read more »

Good News if you Plan to Fly

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According to the Washington Post, now is a good time to book fall getaways because rates are dropping. Questions: By month, what drops are expected in airline rates? What is the peak travel month? When are the most expensive times for travel? Do sales that airlines advertise the best rates? Discuss. Source: Sampson, H. (2019)…. Read more »

Rise up and REBEL!

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According to the New York Times, after many employee complaints, United Airlines said it was “pressing the pause button” on a plan to replace its modest monthly bonuses with a lottery system that would have offered large rewards to a few workers at random. Questions: Why were the employees furious and what did they do… Read more »

The Airline Industry in Africa is Expected to Boom in the Coming Year(s)

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Africa is a continent with the 2nd largest population but only 3% of the global air traffic. The region’s economies are growing robustly and by all indications will continue to do so in the coming years. With a rise in GDP, a corresponding rise in demand for aviation services is to be expected. Questions: 1…. Read more »