Frequent travelers have likely experienced a dreaded check-in process that included a long line to visit the check-in kiosk. Even worse is finally getting to the kiosk, only to have the system freeze or crash. Alaska Airlines wants to change that by removing the check-in kiosk altogether and adding new technology.
Alaska Air Might Keep Virgin America Brand, Operations. Really?
27.07.2023 - 18:38 / smartertravel.com / Brand
Two months ago, when Alaska Airlines bought Virgin America for $4 billion, the consensus prediction was that San Francisco-based Virgin would be slowly integrated into Alaska until it was nothing more than a historical footnote. In other words, what customers love about Virgin would be lost in transition.
That’s how these transactions typically play out. Witness TWA’s absorption into American. Or Continental’s into United. Or Piedmont’s into US Airways.
Except in this case, the contrast between the acquirer and the acquired is more pronounced than usual. Merging Alaska and Virgin is a bit like merging Microsoft and Apple. Both are solid companies, well loved and respected by customers and Wall Street alike. But there’s little overlap in their corporate cultures or business practices. In a merger of such disparate companies, the dominant company grows, the recessive company disappears; there is no best-of-both-worlds outcome.
Related:Hey, Millennials, What’s with You and Travel Agents?And so, since the merger announcement, Virgin loyalists have been bemoaning the incipient death of their beloved airline. Rightly so. In an era of increasing homogenization, Virgin stands out as a company with real character and zest. The disappearance of Virgin from the domestic airline landscape would be a huge loss.
An Alternative Scenario
In a presentation to the Wings Club in New York this week, Alaska CEO Brad Tilden gave Virgin loyalists cause for hope. As reported by the Associated Press, Tilden pointedly alluded to the possibility of continuing to run Virgin as a separate brand and operation: “We are looking at that because we do believe in the power of the Virgin America brand and we don’t want to lose all that loyalty and revenue that exists today.”
Business as usual, but under new ownership? Indeed, the two carriers could coordinate schedules, share codes, cross-participate in each other’s loyalty programs, share resources, and so on – the same types of cooperation and coordination that stitch together airlines partnering in global alliances such as SkyTeam and the Star Alliance.
It’s possible, sure. But the odds of an independent future for Virgin are, in the long run, low. From a purely financial standpoint, there’s the issue of the licensing fee (0.7 percent of revenue) that Richard Branson’s Virgin Group charges to use the Virgin America name. There’s the general messiness and extra costs of managing two separate operations. And never discount the power of the corporate ego to push for more rather than less centralized control.
Even if Alaska were to operate Virgin as a separate company, how independent would it really be? Would it get the resources it needs to keep out-innovating competitors, including
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Autors
Popular Topics
smartertravel.com
27.07.2023 / 18:53
JetBlue’s Latest Play for Virgin America Flyers: Matched Points
With the high probability of Virgin America’s being folded into Alaska Airlines within the next two years, Virgin loyalists are in the market for an alternative. And JetBlue wants to be that alternative.
smartertravel.com
27.07.2023 / 18:52
A New Option for Alaska Air Miles – PreCheck Fee Payment
In a first for a U.S. airline loyalty program, Alaska Airlines is offering members of its Mileage Plan program the option to redeem miles to pay for TSA PreCheck service.
smartertravel.com
27.07.2023 / 18:52
Starwood Points Now Transfer to Virgin America
Today, two storied travel brands that are destined for the scrap heap announced a marketing partnership that only serves to make their imminent demise that much sadder.
smartertravel.com
27.07.2023 / 18:52
Alaska-Virgin America Merger Begets Sadness, Skepticism
According to the just-released Airline Quality Rating study, Virgin America is the country’s best airline. Of the 13 airlines ranked in the study, Alaska Airlines was rated fifth.
smartertravel.com
27.07.2023 / 18:52
From Virgin America: 50% Bonus Points Through August 31
Judging by their load factors, U.S. airlines are doing just fine. For June, Alaska Airlines filled 86 percent of its seats; Delta flew 87.7 percent full; other carriers’ results are expected to be similarly robust.
smartertravel.com
27.07.2023 / 18:51
Alaska Airlines Offers Bonus for Partner Flights
Alaska Airlines is justly lauded for its Mileage Plan loyalty program, which among other features boasts 17 airline partners, allowing program members to earn and redeem miles for flights throughout the world.
smartertravel.com
27.07.2023 / 18:51
Bad News: Alaska Air’s New Earning Rates for American Flights
Until yesterday, American Airlines customers dismayed at the airline’s August 1 pivot to a spend-based mileage program had a fallback option: Earn miles for their American flights in Alaska Airlines’ Mileage Plan program, which still awards miles the old-fashioned way, according to the distance flown.
smartertravel.com
27.07.2023 / 18:50
Alaska Air, Delta to Cut Ties. Who’s the Biggest Loser?
Ever since Delta began ramping up operations in Seattle, Alaska Airlines’ hometown and main flight hub, the relationship between the two airlines has been disintegrating. And there was plenty to disintegrate. The carriers were long-time partners in each other’s frequent-flyer programs, and they code-shared on a host of flights. They were, in the industry vernacular, preferred marketing partners.
smartertravel.com
27.07.2023 / 18:49
On Alaska Airlines, e-Chatting Is Now Free
Wi-Fi access isn’t free on Alaska Airlines flights. But at least for the next year, the airline’s passengers can use inflight Wi-Fi to send and receive unlimited texts for free.
smartertravel.com
27.07.2023 / 18:49
Alaska Air Enhances Mileage Program with New Europe Partner
By traditional measures, Alaska Airlines is a carrier of decidedly modest size, even after its acquisition of Virgin America. Its own flight network is small, compared to those of American, Delta, and United. And it’s not a member of one of the three global airline alliances.
smartertravel.com
27.07.2023 / 18:43
Alaska Air Has a New Mileage Partner: Japan Airlines
I recently dubbed Alaska Airlines’ loyalty program, Mileage Plan, the “Best Mileage Program for Average Travelers.” It’s a hard-won honor, awarded for two principal reasons. First, Alaska has chosen to retain Mileage Plan’s distance-based earning scheme, even as most other airlines have adopted less generous spend-based earning. And second, Alaska has cobbled together a roster of earning and redemption partners that rivals those of the world’s largest airlines.