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How long can Virgin America stay in business?

by on Apr.05, 2009, under Airlines

Virgin America is flying from point to point as opposed to using a hub and spoke model like the larger US carriers. The point to point flights work well on regional hops but don’t think they work as well on coast to coast flights. The coast to coast flights cost too much to operate when you have planes that are 1/4 full.

Virgin America flies from NYC and Boston to Los Angeles and San Francisco. I have been going coast to coast on Delta an United for the past four months, and the coast to coast flights are rarely full. Although I haven’t been on a Virgin America flight but I can’t image they are packed or even 50% full.

United probably has the most loyal business travele customers and they can’t fill up the United P.S. flights which has less seats than Delta and other airlines due to the larger business class cabin. If you have Virgin America miles (I am not even sure how it works), I highly recommend you use them now before they go under like the Virgin retail stores. I don’t see how Richard Branson and his hedge fund partners are making money here.

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How to save on international data roaming charges

by on Apr.03, 2009, under Business Travel, Travel Partners

If you’re a global traveler from the US and need to check emails and have Internet access when you’re abroad, get a BlackBerry if you don’t already own one. I have been abroad and used local carriers (3, Telus, Telstra, Vodafone, etc.) for voice and data then found out my weekly bill was over US$100. The reason for the high fee is due to my data usage. Most international phone companies charge data by the kilobytes or megabytes of upload/download on your device.

The frugal way to get on the Internet and check emails is to leverage the BlackBerry network. If you have a BlackBerry plan from the US, your data service such as email, browsing and BlackBerry Messenger will be traveling on the BlackBerry network. International carriers will allow BlackBerry traffic to go through free of charge (they actually charge BlackBerry but you as the consumer don’t have to worry about it).

I recommend you buy a BlackBerry and join a BlackBerry data plan which is available for T-Mobile for around $40 a month with international roaming – $20 per month for US only (for the record, I am not compensated by T-Mobile or RIM for this post). If you already own a BlackBerry from Sprint, Verizon, etc., get your carrier to enable international BlackBerry service which is around $20 more per month. For the extra $20 a month, you’ll buy the piece of mind of having Internet and email without losing your pants. I have tried this approach in Canada, France, Hong Kong, and the UK, and did not see additional charges on my bill.

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Why you should NOT put your points in travel reward programs like Asia Miles, Air Miles, etc.

by on Apr.01, 2009, under Travel Partners

I don’t really understand the concept of banking airline miles on travel reward programs such as Asia Miles and Canada’s Air Miles. These programs seem like a consolidation of all your travel activities (miles, hotel stays, etc.) without the benefits from the airline or hotels. Another very minor advantage is you can also use your miles for other goods like travel gear and electronics, but many US airlines offer that type of redemption option.

What I am trying to say here is:  if you decide to bank Asian Miles on your Cathay Pacific flight from Hong Kong to Vancouver, you’ll only get Asian Miles but zero Marco Polo miles or benefits. I see the value in Asian Miles if you are flying all sorts of airlines throughout your life and want flexible redemption of miles/points. However, I don’t think you are getting the most out of the Asia Miles program if you only travel with one or two international airlines – say Cathay Pacific and ANA when you live in Hong Kong.

With the consolidation of US airlines and global alliances, all travelers should only need three frequent flier accounts to accumulate airline miles. Make sure your frequent flier account is on one of these alliances: Star Alliance, SkyTeam or OneWorld. Most of the major airlines in any country have membership with one of the alliances. For example, if you live in the Hong Kong, you will only need three accounts:  Cathay (OneWorld), China Southern or Korean Air (Skyteam), and ANA, Singapore Airlines or Thai (Star). You should bank all your air travel on one of the accounts. For redemption, you can easily book your flights on a member airline – i.e., use your Marco Polo miles to book a American ticket from Hong Kong to Chicago.

Once you have enough Marco Polo points in a year, you will get more benefits such as 25% to 100% more miles on every flight — something Asia Miles or Air Miles cannot offer. So forget the airline/hotel/car mileage consolidation programs and stick to an airline or alliance to make your miles pay off.

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