A New Australia Route, Airlines Benefit from Making Awards Available, and Beat Jet Lag Every Time

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About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Interesting link on the “good business sense” piece. However, it’s a little simple to look at accrued liabilities and think BAD. For one thing, most investors are sufficiently sophisticated to realize that frequent flyer liabilities are actually just deferred revenue and don’t represent future outlays of cash. The cash has already been brought into the firm at the time of the original ticket sale or the sale of points/miles to a program partner (e.g. bank).

    In fact, if the program has any sort of expiration or other breakage-inducing structure, preventing the redemption of those miles can be helpful as it allows the airline to recognize more of the revenue up-front at the time of the original sale.

    Of course, counteracting this is the benefits the airline receives by providing its loyal customers with coveted award space, presumably to entice future loyalty. However, glancing at the load factors for Air New Zealand (85% as of December), the airline seems to be doing a pretty decent job of filling its planes as-is.

  2. I saw this AC route several months ago when searching for awards US-AU and even reserved it while the UA site would allow free 24 hour holds so not sure how new it is as far as being able to be booked.

  3. The climate change piece is typical in that the theory isn’t well thought out. Tailwind and headwind speed would be equal in each direction. Its like saying there is a hill but it’s steeper going up than down because it is growing.

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