DELTA MAKES CHANGES TO SKYMILE PROGRAM DELTA

MARCH 2014 NEWSLETTER
Public Says No to Inflight Cell Calls
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Red Roof Introduces 'Plus' Hotels
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DELTA MAKES CHANGES
TO SKYMILE PROGRAM
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INFocus Newsletter
Delta Introduces 2015 SkyMiles
Program with New Mileage
Earning Structure
those less frequent leisure customers
Delta Air Lines has taken another SKYMILES
MILES
MILES EARNED
TOTAL
PROGRAM
PER
WITH
CREDIT
MILES
PER
who purchase premium fares. The
step in its ongoing commitment to
STATUS
DOLLAR•
CARD•+
YEAR
move is consistent with a trend in the
improve the travel experience by
General
member
5
+2
7
travel industry of rewarding customer
unveiling changes to the SkyMiles
behavior based on price. Customers
program. The 2015 SkyMiles program Silver Medallion
7
+2
9
will continue to earn additional miles
will introduce a shift from today's
Gold Medallion
8
+2
10
for purchases with a Delta SkyMiles
current model in which customers
Platinum Medallion
9
+2
11
Credit Card+.
earn redeemable mileage based on
SkyMiles members will gain
distance traveled to one based on Diamond Medallion
11
+2
13
even more redemption options with
ticket price. The program updates will + on Delta spend
the introduction of up to a five-tier
be effective Jan. 1, 2015 and will also
structure to give them a wider variety
five and 11 miles per dollar spent based
include a new mileage redemption
structure that will improve Award on their SkyMiles status, and continue of Awards and improve overall availability
seat availability at the lowest mileage to earn up to an additional two miles per at the lowest price points. The lowest level
requirement levels, offer One-Way Awards dollar* when using their Delta SkyMiles for SkyMiles Saver Awards will remain at
at half the price of round-trip, provide Credit Card, for a total of up to 13 miles 25,000 miles for an Economy Class Award
additional Miles + Cash Award options, as per dollar. The updated program will ticket for travel within the U.S. and Canada
well as make significant improvements to better reward the customers who spend excluding Hawaii. All of Delta's worldwide
delta.com and Delta reservations Award more with Delta and give them improved redemption charts will be updated to
reflect the new options in the last quarter
mileage-earning opportunities.
shopping tools.
"The introduction of a new model of 2014 and will be effective for new Award
A New Mileage Earning Model
Today's method of earning redeemable for earning miles will increase rewards bookings beginning Jan. 1, 2015.
miles based on the distance a customer for those who spend more as well as
In addition to offering multiple new
flies will change to a model of earning differentiate the SkyMiles frequent flyer
redeemable miles based on the price of program for our premium travelers," said redemption levels, the SkyMiles program
the ticket purchased. Delta is providing 10 Jeff Robertson, Delta's vice president – will also introduce One-Way Award tickets
starting as low as 12,500 miles within the
months advance notice of the upcoming SkyMiles.
The updated mileage-earning plan, for U.S. and Canada excluding Hawaii and
program changes so that customers have
travel beginning Jan. 1, 2015, will better will offer customers the ability to redeem
ample time to make travel plans.
Customers will be able to earn between recognize frequent business travelers and
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INFocus Newsletter
United Airlines cracking down on carry-on bag size
By Scott Mayerowitz, Newsday
United Airlines is getting tough on
passengers with oversized carry-on bags.
The Chicago-based airline has installed
new bag-sizers at most airports. It also
emailed its frequent fliers, reminding them of
its rules on carry-on size. United says there
is no change in policy -- just a campaign to
improve passenger awareness.
Some of United's new sizers are
located before security checkpoints. As
of Saturday, employees contracted by the
airline are sending passengers whose bag
exceeds the dimensions for carry-ons back
to the ticket counter, where they check
the bag and pay a $25 fee. Airlines have
traditionally asked people with oversized
bags to check them at the gate, but waived
the $25 fee at that point.
Some travelers are suggesting this is
part of a larger attempt by United to collect
more fees. The airline says it's simply trying
to speed up the boarding process.
The size limits on carry-on bags have
been in place for years, but airlines have
been inconsistent in enforcing them.
Passengers are allowed one carry-on bag
that needs to be 9 inches by 14 inches by 22
inches or smaller to fit in the overhead bin.
They can also bring along one personal
item such as a purse or laptop bag that fits
under the seat in front of them.
In 2008, U.S. airlines started charging
$25 to check a suitcase. To avoid the fee,
more passengers started bringing their
suitcases -- many of them overstuffed -into the airplane cabin.
Suddenly there wasn't enough room in
the overhead bins for everyone's bag.
Although more United passengers may
end up paying a $25 fee, having fewer bags
on board could also have its benefits.
"I've been whacked more times than
I can count by people loaded down with
their life's worldly possessions," says Brian
Kelly, an industry watcher who writes about
flying trends at ThePointsGuy.com.
U.S. Flying Public Really Doesn't Want Inflight Cell Phone Calls
By Jay Boehmer, Business Travel News
The U.S. Department of Transportation
this week began soliciting public comments
on a straightforward question: Should the
government lift a ban on inflight cell phone
calls?
"NOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!,"
was the full response from one commenter.
It was representative of many public
submissions that implored the federal
government to keep the ban intact. Here's
another: "NO WAY! This is a horrible idea!"
As of midday Wednesday, more than
99 percent of the 492 comments filed this
week encouraged DOT to maintain the
ban. Only 12 commenters were in favor
of allowing inflight calls, with an additional
three submissions suggesting lifting the ban
but with caveats.
Some commenters were anonymous,
some identified themselves as frequent
travelers and others claimed to be flight
attendants or pilots, but virtually all were
united in opposition.
In addition, many shared what they
viewed to be a deteriorating inflight
experience that only would be exacerbated
by phone talkers. Many others commented
on what they viewed as widespread erosion
of etiquette, onboard and off.
"As a regular business flyer, I find the
current state of the plane environment to
be stressful, uncomfortable and confusing,"
wrote Fred Bruno. "Permitting the use of cell
phones by passengers would only increase
this level of discomfort and add a truly
annoying activity within a confined space.
Obviously, I am against allowing cell phone
usage on aircraft."
"In a cattle-car environment of economy
class, voice calls will make an already
unpleasant experience unbearable," noted
one anonymous commenter.
To some, allowing calls inflight would
pose a safety hazard, as it could lead to
passenger altercations and interfere with
crew instructions.
"This is a safety issue because someone
is going to punch someone for talking too
loudly," commented Nathanael Bray. One
anonymous commenter noted that "people
already argue about seat backs and tray
tables and paying for food."
One commenter identified as a flight
attendant indicated it's hard enough to share
safety and other relevant flight information
with passengers. It only would get harder if
flyers were on phones.
Patrick Obregon, meanwhile, didn't view
the question as "a safety issue so much
as a social contract and common decency
issue."
Among the very few in favor of lifting
the ban, the prevailing rationale was that
airlines, not the federal government, should
make the determination.
"As it stands now, cell phones are not
banned in similar situations on other forms
of transportation, and it seems to be an
unreasonable intrusion into the freedom of
both the airlines and their passengers for
the government to ban their use," according
to Matthew Walters.
"I believe that voice calls should be allowed
on aircraft," noted Jason Rabinowitz. "Many
airlines across the world have had this
feature for years with not a single recorded
instance of abuse or passenger fights."
The Points Guy, a frequent flyer blogger,
identified a number of international airlines
CONTINUED ON PAGE 5
March 2014
3
United Culls Noncompliant Contracts, Delta Sustains 'First-Mover Advantage'
By Jay Boehmer, Business Travel News
The new watchword from United Airlines
on corporate contracts is "compliance."
That is, corporate accounts not delivering
on negotiated commitments might not stick
around.
Presentation
slides
accompanying
remarks delivered Monday by United
chief revenue officer Jim Compton at the
J.P. Morgan Aviation, Transportation &
Industrials Conference in New York noted
that the airline during the last three months of
2013 "reduced [the] number of noncompliant
corporate contracts by 25 percent" from the
preceding quarter.
"One of the indicators that is firming is
this concept of compliance," Compton told
investors. "You can get corporate contracts
really, really easy," he said, but added,
"What's really important is: Is the deal
working for you? Is it working for them?"
Meanwhile, Compton noted that revenue
management adjustments made in the
fourth quarter have helped the airline
capture fewer far-out bookings in favor of
close-in bookings. The latter are more likely
to be booked by business travelers at a
higher fare.
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INFocus Newsletter
United previously attributed its industrylagging
third-quarter
2013
revenue
performance to flawed demand forecasts
baked into its revenue management
systems. That appears to be on the mend.
"Tickets issued 21-plus days out for
travel in January and February were down
3 percent" year over year, Compton said
Monday. "Tickets issued within 20 days
were up 11 percent in the first two months
of the year."
While Compton did not detail corporate
revenue trends for the first two months
of 2014, he disclosed that full-year 2013
corporate revenue was up 5 percent from
the prior year. The growth rate accelerated
throughout the year, he said, and was up 7
percent in the fourth quarter from the prioryear period.
'First-Mover Advantage' Key To Delta's
Corporate Success
Delta Air Lines, meanwhile, continues to
post solid gains in corporate revenue.
According to presentation materials from
the conference, ticketed corporate revenues
this year are tracking 6 percent ahead of the
prior-year period.
Delta reported the largest year-over-year
revenue gains among clients in financial
services (15 percent increase), automotive
(11 percent), media (10 percent), business
services (10 percent), banking (7 percent),
technology (6 percent) and health care (6
percent). Ticketed corporate revenues from
accounts in the defense and manufacturing
industries, however, are down from the
prior year by 1 percent and 4 percent,
respectively.
J.P. Morgan airline analyst Jamie Baker
during the conference said Delta's corporate
share gains have "proven to be impressive,"
but questioned whether the recently merged
American Airlines and US Airways could
disrupt the success. In an exchange with
Bastian, Baker highlighted "corporate share
that American has ceded to you and others,"
but stands to win back as the merged entity
"gets its network act back together."
Delta president Ed Bastian responded:
"Well, you know, American never left the
market. We've always been competing
with American Airlines and US Airways. I
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Virgin America plans to compete with Southwest at Love Field
By Jerry Limone, Travel Weekly
Virgin America will capitalize on the
expiration of restrictions on long-haul
flights from Dallas Love Field by launching
three routes from the airport, if the carrier
acquires the gates it needs.
Starting in October, the airline plans to
fly to New York LaGuardia and Washington
Reagan National four times per day. Virgin
America intends to begin twice-daily
service to Chicago O’Hare in 2015.
The gates needed for the service are
being divested by American Airlines, a
condition set by the Department of Justice
to allow the carrier’s merger with US
Airways, Virgin America said.
In addition to the new service from Love
Field, Virgin America said it wants to move
existing daily service to Los Angeles and
San Francisco from Dallas/Fort Worth to
Love Field, and increase the frequency
from three to four daily flights to both
California cities in 2015.
Virgin America said Love Field’s
“centralized location makes it a more
convenient choice for Dallas-based and
Dallas-destined business travelers.”
Virgin America will go head-to-head with
the largest airline operating out of Love
Field, Southwest Airlines, in three markets:
Los Angeles, Washington Reagan National
and New York LaGuardia. Southwest, too,
will fly to Chicago but to Midway.
Last month, Southwest unveiled its Love
Field expansion for October, when the
Wright Amendment restrictions on longhaul flights from Love Field expire.
Virgin America pointed out that it would
be the only carrier at Love Field to offer
premium-class service.
Red Roof Inn introduces 'Plus' delineation
By Danny King, Travel Weekly
Red Roof Inn this year will introduce a
hotel descriptor, Red Roof Plus, indicating
additional amenities.
Red Roof Plus hotels will have added
modern furniture, flat-screen TVs and
upgraded bedding. The hotels will also
offer “premium” rooms with amenities
such as snack boxes, in-room coffee and
tea, an ironing board, a mini-fridge and a
microwave.
INFLIGHT CELL CALLS CONTINUED
that allow phone calls, at least on some
flights.
An Emirates executive, for example,
previously told BTN that its allowance of
inflight calls was not disruptive to other
passengers. Even so, some U.S. airlines
including Delta and Southwest indicated
they're not interested in enabling inflight
phone calls—with or without a ban.
While opposed to onboard phone calls,
quite a few commenters were in favor of
The economy chain, which has about
360 U.S. properties, said it will introduce
31 Red Roof Plus hotels during the early
part of this year.
The hotel descriptor is similar to a strategy
initiated by Best Western International.
Since 2010, that company has brought
its Best Western Plus and Best Western
Premier delineations to North America.
Best Western Plus properties include
amenities such as mini-fridges, in-room
coffee and tea and fitness center. In
addition to those touches, Best Western
Premier hotels have upgraded linens and
flat-screen TVs.
Of Best Western’s more than 4,000
properties, about 1,100 are Plus and about
150 are Premier.
enabling inflight texting.
"Data access is fine," noted Brian Thorn,
"but I don't want to listen to Joe Hotshot
Businessman talking about his latest deal,
nor do I want to listen to Teenybopper Suzie
talk about the last totally rad party she just
attended."
A few were in favor of lifting the ban, but
with various conditions.
One recommended allowing phone calls
as long as they don't interfere with avionics
and if "flight attendants are [allowed] to
confiscate a cell phone" if a passenger is
disruptive. Another was in favor of allowing
inflight calls for select periods of flights,
perhaps "only during the last portion for
when it might be more urgent to arrange
ground transport, etc."
DOT on Monday issued its advance
notice of proposed rulemaking, and through
March 26 is "seeking comment on the
effects and implications of adopting a rule to
ban voice communications on passengers'
mobile wireless devices on flights within, to
and from the United States."
That public feedback initiative is in
response to a U.S. Federal Communications
Commission proposal that if adopted would
revise its current "prohibition on the use of
cellular telephones" onboard aircraft.
CONTINUED ON PAGE 6
March 2014
5
RED ROOF CONTINUED
have no doubt that once they get their act
together, as you mentioned, they will be
a much stronger competitor, and that is
certainly our expectation."
Bastian spotlighted what he called Delta's
"first-mover advantage in this space,"
citing the airline's work to restructure
under bankruptcy protection, merge with
Northwest Airlines and move "quickly to
improve the quality of the products and
offerings" ahead of the competition.
"We are not impacted by the distractions,"
Bastian said. "We all know, those are
tough mergers and tough integrations
to accomplish. That's not impacting our
performance. What we're able to do is spend
all of our time with our corporate customers
and invest in the products, the services and
the technologies that they prefer."
When United and Continental sealed their
merger, Delta faced similar questions as
Baker's. Yet, even after United eclipsed the
Continental brand, "You've seen that we've
continued to make progress," said Bastian,
"and I think you're going to see some of
that same performance. It's a big market
out there, and the corporate markets are
robust. We're looking for not trying to steal
share going forward, but certainly at least
to be able to maintain our share, and that
should provide us some nice improvement
opportunities for the future."
Americans using public transit in record numbers
Americans are boarding public buses,
trains and subways in greater numbers than
any time since the suburbs began booming.
Nearly 10.7 billion trips in 2013, to be
precise — the highest total since 1956,
according to ridership data reported by transit
systems nationally and released Monday
by the American Public Transportation
Association.
Transit ridership has now fully recovered
from a dip caused by the Great Recession.
With services restored following economydriven cutbacks, ridership numbers appear
set to continue what had been a steady
increase.
"People are making a fundamental
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INFocus Newsletter
shift to having options" aside from a car
in how they get around, said Michael
Melaniphy, president and CEO of the public
transportation association. "This is a longterm trend. This isn't just a blip."
Expanding bus and train networks help
spur the growth.
Ridership on Los Angeles County
Metropolitan Transportation Authority lightrail trains increased six percent over 2012,
as the public took advantage of an expanded
network of lines. Overall, LA Metro gained
nine million trips to reach 478 million in 2013,
the transportation association said. Among
the other transit systems in California with
record ridership was the Caltrain commuter
rail service that connects San Francisco
with Silicon Valley.
Houston, which has been more notable
for its sprawl than its public transportation
offerings, had a large ridership gain. So did
Seattle, Miami, Denver and San Diego. The
New York area's behemoth transit network
saw the greatest gain, accounting for one in
three trips nationally.
Transit advocates argue that the public
increasingly values the ability to get around
without a car. They offer as evidence the
nation's urban shift and the movement
to concentrate new development around
transit hubs.
RED ROOF CONTINUED
Founded in 1972, Red Roof Inn was
acquired from Accor in 2007 for $1.3 billion
by a group lead by Citigroup. The company,
which as recently as 2009 defaulted on its
mortgage loan, last year completed a $150
million renovation program.
American Airlines, JetBlue ending agreement
American Airlines and JetBlue Airways
Corp. are ending an agreement that allowed
travelers to add connections to their itinerary
on each other's aircraft.
The termination of the interline sales
agreement is effective Monday.
The companies also said that they are
ending a reciprocal frequent flyer program
accrual agreement. Travelers won't earn
miles or points when traveling on eligible
routes run by the other airline beginning
April 1.
All American AAdvantage miles or
JetBlue TrueBlue points already accrued
through the partnership will be credited to
customers' accounts and are not affected.
Last month Delta announced changes to
its frequent flier program. Starting next year,
Delta customers will earn miles based on
how much they spend, not just miles flown.
American Airlines Group Inc. is the
holding company for American Airlines and
US Airways.
Southwest announces potential flights from Dallas
Southwest Airlines Co. is raising the
ante over Dallas Love Field.
The airline said Monday it'll begin
flying next year from Dallas to Boston;
Oakland and San Jose, Calif.; Portland,
Ore.; and Panama City Beach, Fla. A law
banning those flights with large planes
like Southwest's Boeing 737s expires in
October. Southwest recently announced
the first 15 cities it'll serve.
Southwest says that if it gets two more
gates that American Airlines must sell,
it'll fly to San Francisco and Sacramento,
Calif.; Seattle; Minneapolis; Philadelphia;
Newark, N.J.; Detroit; Indianapolis;
Memphis, Tenn.; Charlotte and Raleigh-
Durham, N.C.; and Charleston, S.C.
Delta Air Lines Inc. and Virgin America
also want the gates. The Justice
Department will decide. American agreed
to sell them to settle a government lawsuit
against its merger with US Airways.
Choose the newly transformed Hyatt Regency Cincinnati
and experience a hotel offering every possible convenience
under one roof, including:
Twenty-two story atrium with an
abundance of natural light
Red Roost Tavern—Brand new
farm-to-table restaurant
The Market—Grab and Go items
Glass enclosed indoor pool and
outside sun deck
24 hour StayFit@Hyatt health
club and full self-serve business
center
March 2014
7
DELTA SKYMILES CONTINUED
Miles + Cash to provide more Award
booking options for tickets purchased at
delta.com or through Delta reservations.
"We've had thousands of direct
conversations with SkyMiles members
over the past three years and they've told
us that Award redemption is the most
important attribute to any successful
rewards program," Robertson said. "With
improvements to delta.com, even more
Awards seats at the lower price levels,
One-Way Awards and Miles + Cash
options, Delta will deliver an improved
award redemption experience for all
customers."
Customers will continue to have access
to every seat on any Delta flight as an
Award seat with no blackout dates. In 2013,
frequent flyers redeemed more than 271
billion miles in the SkyMiles program for
more than 11 million Award redemptions.
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INFocus Newsletter
Delta is the only major airline that
offers elite perks such as unlimited
complimentary upgrades, no mileage
expiration, no Award fees, a published
Diamond Medallion tier and rollover
Medallion Qualification Miles.
In January 2013, Delta announced
changes
to
SkyMiles
Medallion
qualification and introduced new, userfriendly tools for customers later in the
year at delta.com and its popular Fly Delta
apps to help them track their progress.
Medallion qualification guidelines are not
impacted by the changes to mileageearning or redemption options.
Now in its 33rd year, SkyMiles is one of
the longest-running and most successful
loyalty programs in the travel industry.
Delta offers many ways to redeem
frequent flyer miles, including airline
tickets on Delta and 28 partner airlines,
mileage upgrades, car rentals, hotel stays
and Delta Sky Club memberships, and
is the only major airline with miles that
don't expire. For more information on the
SkyMiles program, Medallion status and
mileage-redemption options, visit delta.
com/skymiles.
With billions of dollars invested since
2010, Delta continues to improve the
travel experience onboard its aircraft
with the recent announcement that it
will add access to power on 225 of its
domestic narrowbody aircraft, as well
as improve technology and facilities
including its new Terminal 4 at New
York-JFK and the Maynard H. Jackson
Jr. International Terminal in Atlanta.
Additionally, customers have seen Delta's
investment in its more than 50 Delta Sky
Clubs throughout the system, installation
of power poles in gate areas at more than
40 airports and updates to the popular Fly
Delta app which has been downloaded by
more than 10 million customers.
For full terms and conditions, please
visit delta.com/skymiles2015. All SkyMiles
program rules and membership guidelines
apply.