Sunday, May 31, 2015

Lufthansa Business Class Is Amazing

It's so Luftastic!  I love Lufthansa and recently flew their 747-8 in the upper deck business class (super quiet).  It was a wonderful experience, enjoy the photo's like I enjoyed the Glenfiddich Select Cask scotch.
Business Class Seat for TTL
Good For Sleeping
Glenfiddich Select Cask and a Starter
Main Pairs Well With Glenfiddich Select Cask
I Enjoyed the Glenfiddich More Than Dessert
I Drank the Upper Deck Out of Glenfiddich Select Cask
Flight Attendants Procured More Glenfiddich from Down Stairs

Wednesday, May 27, 2015

Apology from British Airways

Dear Mr Bussa

We recently wrote to you with information about an Upgrade to First offer.  The email was sent in error, we would like to sincerely apologise for this and any confusion caused.  We appreciate your understanding and hope to welcome you on board soon. 

I thought an untargeted upgrade offer was strange, but sadly untargeted email is becoming standard business practice (though it is very easy and inexpensive to target emails).  It appears British Airways did intend to target the email to frequent business class flyers.
Sitting In The Back

Tuesday, May 26, 2015

Free First Class Upgrade Offer

Dear Mr Bussa,

There’s still time to upgrade from Club World to First for free. To enjoy this one-way offer, simply book an eligible Club World return flight before 26 June 2015.

We look forward to welcoming you into the exceptional calm, comfort and dining of First — for free. 
Offer Not Valid on the 787 - No First Class Seats On-board
That's awfully nice of British Airways. It's also sneaky, because they only upgrade half the trip, so you'll have a recent reminder of the perils of business class. In the 80's and 90's, British Airways offered free Concorde upgrades to regular first class flyers. It was an effective program that got people hooked on supersonic transport. This is a modern evolution of that idea, but less fun.

Lufthansa & Boeing 747-8 Video

I love this aircraft.

Saturday, May 23, 2015

Lockheed Martin Ads

My browsing history or IP address has something interesting associated with it.  Google Adwords gave me an ad for Lockheed Martin Skunk Works.
Lockheed Martin Ad

Monday, May 18, 2015

Frequent Flyer Program Points / Miles Inflation

Airline Award Price Inflation
Inflation is a great way for governments to take wealth and reduce their debt. It happens continuously, but no one really notices, so it's a low risk political move.  By creating more currency, the government receives the full value of the new money while everyone's existing money is worth slightly less.  It's something everyone endures, but no one enjoys. 
South American Style Currency
Recent Inflation Victim
Airlines also manage a currency and create inflation. Airlines created their own currency with points programs and have been adding more currency than is being redeemed.  This creates an over supply of currency against a static (more or less) supply of awards.  The unbalanced supply and demand creates an opportunity for point inflation. Airlines manage their currency like Venezuela or Argentina.  There is constant inflation by creating more currency with fixed award opportunities.  They also engage in large and sudden devaluations periodically.  Venezuela has inflation every day, but they will also suddenly change exchange rates.  Both destroy currency value, but the gradual devaluation stings less.  Airlines do the same when they change their award charts (British Airways most recently).  Awards that cost 80,000 miles yesterday can cost 100,000 points today when the award chart changes over.  These massive changes are usually, but not always, announced several months in advance.
More Miles Pursuing Same Seats
Hyper Inflation Airlines
Airlines create new currency, point or miles, at no cost to them.  They sell this currency to partners, like credit cards or hotels and receive real money for their proprietary money.  United Airlines sold $2.9 billion of frequent flyer miles in 2013 and has about $4.9 billion of frequent flyer miles outstanding.  They expect 20% these miles to expire, so the mileage expiration policy creates $1 billion in profit.  They did not disclose how they value a frequent flyer mile.   

“Five million and 4.7 million MileagePlus flight awards were used on United in 2013 and 2012, respectively. These awards represented 7.7% and 7.1% of United’s total revenue passenger miles in 2013 and 2012, respectively. Total miles redeemed for flights on United in 2013, including class-of-service upgrades, represented approximately 80% of the total miles redeemed.” (UAL annual report)  20% of mileage redeemed was used for partner flights, merchandise awards, and other ground based awards. That’s a massive amount of miles chasing relatively few awards and creates a great inflation opportunity.
Costs More and More To Sit Up Front
44% Inflation over 9 Years
When I started collecting United miles in earnest, a round trip to Europe in business class was 80,000 miles.  Then it became 100,000.  Now it's 115,000 on United or 140,000 on a partner.  1,000,000 United miles was worth 12.5 round trips, but is now worth 7 trips.  This is a massive currency devaluation of 44% over 9 years.  Frequent flyers should be marching and banging pots in front of United's corporate office, but I doubt many realize their miles are worth so much less.  Most customers measure their balance by the number of miles in it.  This is a poor indicator of value though.  Viewing it as the number of awards you want (business class tickets to Europe in my example) is a better indicator of value. 
Program Changes Can Reduce Award Balance Value
Reducing Inflation Risk
Collecting miles and points creates an inflation risk.  The more you collect, the larger the risk.  Inflation can't be eliminated, but the risk can be managed.  Here are a few tactics to help support an inflation hedge strategy:
  • Collect Points in Multiple Programs – All programs have inflation, but at different rates and different times.  Diversification reduces your exposure to a single program's risk.  It also creates more reward opportunities.
  • Spend Points Regularly - A smaller point balance lowers the potential loss of value to inflation.  Also, why bother collecting miles if they are never used?
  • Be Aware of Pending Award Price Changes - Don't be taken by surprise, read emails from your programs.  If a change is coming, book at the lower prices if able.  I booked a round trip to Europe before British Airways changed their award chart this year.
  • Change Programs if Required - Most airlines have partners and one partner may have a more rewarding and stable award structure.  Alaska miles seem more stable than Delta miles and you can earn either on a Delta flight.
  • Set Award Based Goals - Don't set a balance number as a goal.  1,000,000 United miles has a nice ring to it, but it isn't an end in itself.  4 round trips to Europe in business class is a better goal because it has a fixed value while the miles could change value.  Redeem when you reach your goals.
  • Create A Single View of Your Assets – Take a look at your award balances on one screen.  Copy and paste into Excel or Gmail if needed.  Looking at your assets on the same page will help you understand where your risks are.  It also may help you be more creative with your awards. 80,000 Delta miles and 62,500 American miles is a round trip to Australia in business class.

Saturday, May 16, 2015

Plane Crash Movie On My Flight

I watched a movie about airplane crashes on a recent flight.  A Yank in the R.A.F. was on TCM (free DirecTV in United first) and it was full of plane crashes and fires. In the old days when airlines picked their movies, they avoided ones with sensitive topics. It was a good propaganda film from 1941 (filmed in the UK with the Luftwaffe in the area), so I didn't notice it was about airplane failures until the end. 
United 737 with DirecTV
The funniest part of the movie was in the opening credits:
The Producers wish to express their appreciation to the officers and personnel of the Royal Air Force whose cooperation, under difficult conditions, made possible the filming of the aerial scenes in this production.

UPDATE: I also enjoyed North By Northwest and Von Ryan's Express on flights, so I guess prop plane crash movies are OK to watch on flights.

Minimum Credit Card Rewards Value

Note: I am NOT compensated for this post. I would like to be, but that's another discussion.

Do you receive more than 2% in award credit on your daily credit card spend?  If not, switch cards to the Fidelity Amex that gives 2% cash back on every purchase.  If your current credit card yields just 1 point per dollar, you would probably be better off with a 2% cash back card for daily spending. It may be advantageous to keep an airline card for free checked bags, double miles promotions, or to avoid foreign transaction fees, but only use it sparingly.  The Fidelity card is an Amex, so a Visa/Mastercard backup is good to carry.
Cash Back Works On Any Airline With No Black Out Dates

Friday, May 15, 2015

JetBlue Bags Made From Recycled Uniforms

JetBlue has partnered with Manhattan Portage to transform of crew uniforms into trendy new bags.  The bags look cool, but I don't like the JetBlue brand enough to spend about $100 on a bag I would rarely use.  They are running a contest to win a trip to New York too.
JetBlue A320's

Wednesday, May 13, 2015

Sensible Germans Use Fewer Titles

Ze sensible Germans at Lufthansa have a simple and practical list of titles for customers to select.  It's a funny cultural contrast to British Airways' title obsession.
Lufthansa A320 at Madrid
Lufthansa titles: Mr, MrDr, MrProf, Mrs, Mstr, MrsDr, MrsProf, Ms.

Tuesday, May 12, 2015

British Airways Loves Titles

If I were an Earl, Commodore, Crown Prince, or Vice Admiral, I'd be very frustrated with web forms forcing me to select "Mr." Luckily British Airways identified this source of customer frustration and has a very thorough option set for customers to select their title.  It's a funny read.
Her Majesty, H R H, or Mrs. Windsor
Title: Mr, Mrs, Ms, Miss, Dr, Herr, Monsieur, Hr, Frau, A V M, Admiraal, Admiral, Air Cdre, Air Commodore, Air Marshal, Air Vice Marshal, Alderman, Alhaji, Ambassador, Archbishop, Archdeacon, Baron, Barones, Baroness, Bay, Bayan, Bishop, Brig, Brig Gen, Brig General, Brigadier, Brigadier General, Brother, Canon, Capt, Captain, Cardinal, Cdr, Chief, Cik, Cmdr, Col, Col Dr, Colonel, Commandant, Commander, Commissioner, Commodore, Comte, Comtessa, Congressman, Conseiller, Consul, Conte, Contessa, Corporal, Councillor, Count, Countess, Crown Prince, Crown Princess, Dame, Datin, Dato, Datuk, Datuk Seri, Deacon, Deaconess, Dean, Dhr, Dipl Ing, Doctor, Dott, Dott sa, Dr, Dr Ing, Dra, Drs, Duchess, Duke, Earl, Embajador, Embajadora, En, Encik, Eng, Eur Ing, Exma Sra, Exmo Sr, F O, Father, First Lieutient, First Officer, Flt Lieut, Flying Officer, Fr, Frau, Fru, Gen, Generaal, General, Governor, Graaf, Gravin, Group Captain, Grp Capt, H E, H E Dr, H H, H M, H R H, Hajah, Haji, Hajim, Her Highness, Her Majesty, Herr, High Chief, His Excellency, His Holiness, His Majesty, Hon, Hr, HraIng, Ir, Jonkheer, Judge, Justice, Khun Ying, Kolonel, Lady, Lcda, Lic, Lieut, Lieut Cdr, Lieut Col, Lieut Gen, Lord, M, M L, M R, Madame, Mademoiselle, Maj Gen, Major, Marchioness, Marquess, Marquis, Marquise, Marshall, Master, Mevrouw, Miss, Mlle, Mme, Monsieur, Monsignor, Mr, Mrs, Ms, Mstr, Nti, Pan, Pani, Pastor, President, Prince, Princess, Princesse, Prinses, Prof, Prof Dr, Prof Sir, Professor, Puan, Puan Sri, Rabbi, Rear Admiral, Rev, Rev Canon, Rev Dr, Rev Mother, Reverend, Rva, Senator, Senhor, Senhora, Senhorita, Senor, Senora, Senorita, Sergeant, Sheikh, Sheikha, Sig,Sig na, Sig ra, Sir, Sister, Sqn Ldr, Sr, Sr D, Sra, Srta, Sultan, Tan Sri, Tan Sri  Dato, Tengku, Teuku, Than Puying, The Hon Dr, The Hon Justice, The Hon Miss, The Hon Mr, The Hon Mrs, The Hon Ms, The Hon Sir, The RT Hon, The Very Rev, Toh Puan, Tun, Vice Admiral, Viscount, Viscountess, Wg Cdr.

Sunday, May 10, 2015

Formula 1 United MileagePlus Auction

I wish I could still rake in 250,000 United miles a year, then I'd have no problem bidding 400,000+ miles for a Formula 1 weekend in Canada. I'm surprised the air travel is in coach, but it otherwise looks like an amazing weekend.  
I Need To Earn More United Miles
UPDATE: The auction went for a reasonable 451,000 miles.

Friday, May 8, 2015

Dawn Arrivals on the West Coast

I've had a string of gorgeous dawn arrivals on the west coast recently. Always take a window seat if you are landing into SFO or LAX as the sun rises. Also don't rush off the plane, the United Club bar doesn't open until 8:00 AM
Low Clouds into SFO

Wednesday, May 6, 2015

New British Airways Awards Travel Strategy

British Airways miles flew me to Easter Island, Santiago, and Montevideo on one award ticket from Miami for 80,000 miles and $64 in business class.  Their award chart had amazing values.  British Airways also thought it was amazing and changed it to remove any outstanding values. They went from a region based chart to flight distance based pricing.  Last week they changed their prices again, but only for premium cabin travel.  Business class is 50% more expensive and first class is 33% more expensive. Flying coach is the only economical use for British Airways miles now. I plan to use my remaining British Airways miles on short distance awards to maximize their value.  It was a fun program while it lasted.
Best Use of British Airways Miles

Saturday, May 2, 2015

Southwest Airlines First Class 737-800

Southwest has two first class seats on every 737-800.  The service isn't any different and they are the same narrow width as all the other seats, but these two seats do offer unlimited leg room.  I was able to claim one with boarding position A43 and B2 last week.  They are considered part of the exit row, so they can't be occupied by pre-boards, children, or the elderly.   
Seat 16A
Exit Rows 15 and 16
Seat 16A Leg Room

Friday, May 1, 2015

Happy May Day

I don't have any Air Koryo photos, so China Eastern will have to do.
Communist Airline With Proletariat and Bourgeoisie Classes