Greater Scrutiny on Loyalty Programs as DOT Launches Investigation; American Airlines Announces New International Routes

ICARO Media Group
News
07/09/2024 21h14

In a move that could potentially impact frequent fliers, the Department of Transportation (DOT) has initiated an investigation into loyalty programs offered by major U.S. carriers including American Airlines, Delta, Southwest, and United. The government aims to obtain more detailed information on these programs to identify any potential competition or consumer protection issues. Each of the airlines has been requested to submit relevant documents within 90 days, although the DOT has not yet disclosed the potential consequences of the investigation.

Meanwhile, American Airlines has unveiled its plans to introduce five new daily long-haul international routes next summer from multiple hubs. While most of these routes serve as strategic connections between existing cities and hubs, one new destination has been added to the airline's network. However, the highly anticipated Washington/National - Moscow flight is not included in the new routes. Commencing from March 30, travelers can fly on a B787-8 Dreamliner from Chicago/O'Hare to Madrid. Additionally, starting from May 23, American Airlines will resume service to Edinburgh and Milan/MXP from Philadelphia, both operated by its fleet of Dreamliner aircraft. Furthermore, on June 5, passengers can travel on a B777-200 from Charlotte to Athens, while the Miami to Rome route will be serviced by the same aircraft type from July 5.

In other airline news, Cathay Pacific faced some disruptions as nearly 70 flights had to be canceled due to an "engine component failure" discovered shortly after takeoff on Flight 383 bound for Zurich. The affected aircraft, a five-year-old A350-1000, returned safely to Hong Kong. As a precautionary measure, Cathay Pacific conducted inspections on its entire fleet of 48 A350 aircraft and identified faulty parts on 15 aircraft, indicating potential safety risks. The European regulator EASA has mandated a one-time inspection of all A350 engines to ensure the issue is not more widespread. This directive includes fuel-line checks and the replacement of compromised high-pressure fuel hoses, which may have implications for companies in the airplane engine fuel hose industry.

Elliott Investment Management, a major shareholder of Southwest Airlines, has acquired a 10% stake in the carrier, giving it the leverage to call for a special meeting if the airline's leadership does not meet its demands. A special meeting allows shareholders to vote on urgent matters that cannot wait until the next general assembly. Elliott's specific objectives for the meeting are yet to be disclosed, but they may include discussions on new services and potential changes to the board. The two sides are scheduled to meet soon, and if Elliott is unsatisfied with the outcome, it is expected to push for the special meeting later this fall.

Air Canada is facing the possibility of a pilot strike, with a growing likelihood of a work action as the September 17 deadline approaches. The Air Canada Pilots Association (ALPA) supports the potential strike and hopes the Canadian government will not intervene in their quest for an updated agreement. Air Canada remains optimistic about reaching a deal but has implemented a waiver for customers scheduled to fly between September 15 and September 23, enabling free changes to flights in case of potential disruptions.

In addition to these developments, several airlines have announced new routes and services. Aeromexico is slated to launch a daily nonstop flight to Cartagena in February, while Cyprus Airways has added another A220 aircraft to its fleet. Etihad Airways plans to introduce flights to Prague and Warsaw, unleashing new connectivity options in Eastern Europe. Other highlights include FlyGabon's commencement of domestic operations, Hawaiian Airlines' acquisition of a new Dreamliner, ITA's return to Tel Aviv, and KLM's commitment to reducing nighttime noise disruptions at its Amsterdam hub.

As the aviation industry continues to evolve, news and updates from various airlines across the globe are rapidly shaping the future travel landscape. Stay informed with Cranky Weekly's comprehensive coverage of the latest developments in the industry.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related