Singapore Airlines launches Krispay, Aimia under attack, American’s falling profits bring back free carry-ons in basic Economy, Air Asia sees no limit to growth
– Singapore Airlines Krisflyer has launched Krispay and new app that allows you to spend Krisflyer miles at a selected number of merchants (so far mostly in Singapore).
I quite like the idea to have miles available to spend on food (not just flights and hotels) brings this loyalty currency much closer to the goal of a universal currency and the implementation looks quite slick. The only issue?Krisflyer miles will only be worth 0.5 cents – that’s really low!
– Aimia (the company that manages Aeroplan and PLM (AeroMexico’s loyalty program) is in trouble – we knew this but the value of the company is now so low that the airlines are bombarding it with hostile takeover offers
I can’t see the company surviving in it’s current form much longer. All the leverage is with the airlines and they simply want the company to cede operations as soon as possible and get their loyalty program back in house (where it belongs!).
– after years of merger, organic growth and record profits troubles are brewing at American and the airline reducing investment and trying to get profits back on track
Doug Parker will clearly regret his 2017 statement soon.
But the bring customers back the airline will eliminate the carry-on restrictions for Basic Economy effective September 5th. Now United is the only major legacy airline with carry-on restrictions for Basic Economy. Expect an annoucement to remove that restriction any day now.
– if me recent anecdotal evidence is any measure Air Asia flights operate close to theoretical load factor (for routes that are at least a few months old)
5 AM flights to Chiang Mai – 100% full. 2 PM flight to Kuala Lumpur from Bangkok 100% full.
Ryanair and Air Asia show every day that the demand for air travel is elastic (and seemingly unlimited) at a range of 2-3 cents per mile. Both airlines publish so many cheap fares (though they do allow free carry-on bags) that we had to remove them from the Mighty Travels Premium Dashboard lately.
Yes the Air Asia experience can be miserable these days but full planes indicate a bright future for the company.