This May Be the Best Frequent Flier Perk Ever
Forget about getting bumped up to first class. Delta Airlines is now bumping its best customers off commercial flights entirely -- and onto private jets.
The program got off the ground last week, according to Bloomberg, with its first flight traveling from Cincinnati to Atlanta.
To be eligible for the upgrade, fliers must have at least 125,000 miles in travel and $15,000 in annual spending with the airline. The bump costs an extra $300 to $800.
In addition to improving the loyalty among some of Delta’s best customers, the program has a side benefit for Delta, allowing it to get some value from positioning flights, known as “empty legs,” which make up about 30 percent of industry flying.
Delta and other airlines have been shifting their loyalty programs in ways that make it easier for elite flyers to earn rewards and more difficult for more irregular customers.
Related: Rethinking airline points strategy with the Points Guy
Starting in June 2016, Delta will issue rewards based on the amount of money spent rather than miles traveled, and the airline may change the number of miles necessary to book a flight based on demand and other factors.
Analysts say that other airlines may follow suit. Airline reward programs have been unsuccessful in fostering loyalty among patrons, many of whom book flights based on cost and convenience rather than brand preference. Only 44 percent of travelers and 40 percent of business travelers fly at least three-quarters of their miles on their preferred airline, reports Deloitte.
Delta’s reward program ranked 9th on U.S. News’ annual ranking of the best airline rewards programs, released this week, receiving 3.1 stars out of 5. Alaska Airlines was ranked first.
Chart of the Day: Long Way to Go on Coronavirus Testing
The White House on Friday unveiled plans for a new effort to ramp up testing for Covid-19, which experts say is an essential part of limiting the spread of the virus. This chart from Vox gives a sense of just how far the U.S. has to go to catch up to other countries that are dealing with the pandemic, including South Korea, the leading virus screener with 3,692 tests per million people. The U.S., by comparison, has done about 23 tests per million people as of March 12.
After Spending $2 Billion, Air Force Bails Out on Planned Upgrades of B-2 Bombers
The Air Force has scrapped a planned upgrade of its B-2 stealth bomber fleet — even after spending $2 billion on the effort — because defense contractor Northrup Grumman didn’t have the necessary software expertise to complete the project on time and on budget, Bloomberg’s Anthony Capaccio reports, citing the Pentagon’s chief weapons buyer.
Ellen Lord, the undersecretary of defense for acquisition and sustainment, told reporters that the nearly $2 billion that had already been spent on the program wasn’t wasted because “we are still going to get upgraded electronic displays.”
Big Hurdle for Sanders’ Plan to Cancel Student Debt
Bernie Sanders wants to eliminate $1.6 trillion in student debt, to be paid for by a tax on financial transactions, but doing so won’t be easy, says Josh Mitchell of The Wall Street Journal.
The main problem for Sanders is that most Americans don’t support the plan, with 57% of respondents in a poll last fall saying they oppose the idea of canceling all student debt. And the politics are particularly thorny for Sanders as he prepares for a likely general election run, Mitchell says: “Among the strongest opponents are groups Democrats hope to peel away from President Trump: Rust Belt voters, independents, whites, men and voters in rural areas.”
Number of the Day: $7 Million
That’s how much Michael Bloomberg is spending per day in his pursuit of the Democratic presidential nomination, according to new monthly filings with the Federal Election Commission. “In January alone, Bloomberg dropped more than $220 million on his free-spending presidential campaign,” The Hill says. “That breaks down to about $7.1 million a day, $300,000 an hour or $5,000 per minute.”