Airline Miles Are Getting More and More Worthless

When I started traveling for business in the late 80s, it took 25,000 miles to get a free round trip domestic ticket. There were a few black-out dates here and there, but it really wasn't that hard to get a seat if you booked a month or so in advance.

As the 90s progressed, it became harder and harder to cash in the points. Not only were there blackout dates, but airlines started putting tight limits on the number of seats they would release for mileage on each flight. And the number of people with points exploded, so there were more people competing for fewer seats.

Then in the late 90s the mileage requirement per seat started going up. 25,000 miles became 30,000. Then the airlines introduced "dual track" mileage, charging a higher set of miles for "peak" periods - first 40,000 and then 50,000. And these were for flights that you typically wanted to take, so they effectively raised the rates unless you wanted to fly the red-eye.

It looks like the next step is that the airlines are just going to go to 50,000 miles for everything. I just got this from United:

Effective Oct. 16, 2006, the number of miles required to redeem for many Standard and select Saver Awards will change. As an example, the domestic Economy Standard Award redemption amount will increase from 40,000 to 50,000 miles, matching most other U.S. carriers' current standard award levels.

Even Southwest, which had the most liberal and user-friendly rules, is tightening down with one-year expirations on their tickets and certain blackout periods - which they didn't used to have at all.

And during this time the flying experience is getting worse and worse with more packed-in seats, fuller flights, more delays, higher ticket prices, and smaller flight crews. It seems that the airlines should be giving me MORE rewards for flying so much, not less.

Aston Martin or Tibet?

Based on a True Story

Two young executives, Andy and Bob, are brought on as VPs at a start-up. They toil for years going through ups and downs, at one point honestly believing the company would shut down for good. But through hard work, determination, and just a little bit of luck, everything pulls together and the company starts growing. It finally starts making money. It actually goes public. The two guys who at one point thought they lost everything found that they were suddenly sitting on stock options worth millions.

After the IPO, the VPs were having a beer together, and the topic came up what to do with their stock. They both felt the company was still growing, so they didn't want to cash in. But they put in years of hard work and effort, and wanted to do something with their hard earned money. So the two agreed they would each cash out $250K and spend it on a "non-necessity", i.e. it could only be spent on something they wouldn't do unless they had money to burn.

Andy decided to take a leave of absence and go to Tibet. He liked the outdoors, was an avid camper, and the thought of seeing the Himalayas and mystery of Tibet had always fascinated him. With the money he could put his affairs in order for a few months, not worry about an income for a while, and arrange his travel and equipment. But he certainly wouldn't need very much money once he got there.

Bob got an Aston Martin Vantage.

So if you had to pick one - and these are your only choices - which would you choose?




For me this is a no brainer: ASTON MARTIN. I have an eternity to wonder about the mysteries of Tibet. I have only about fifty more years to enjoy an Aston Martin. Besides, I've been inside the Vantage in question and it is sweet.

An Airplane Experience You'll Never Have

This cool video (about 3 minutes) is from Boeing's sales department showing some really great things that airlines can do with the new 747-800 interior. I really like the business lounge and exercise room. And I like all the internet terminals everywhere.

But we all know what will REALLY happen: the airlines will rip everything out and squeeze in as many seats as humanly - or inhumanly - possible. The flying experience is getting worse, not better.

Numbers That Explain a Mindset

At a business dinner with a Chinese executive (there are a BUNCH here this week as a part of a trade delegation), a colleague at my company was making idle conversation while we ate.

"So your company is in the Chinese province of Guangdong? How many provinces does China have?"

"Twenty-three," our guest replied.

I looked up from my meal and raised my eyebrows at him.

"Including Taiwan," he added. Not wanting to be drawn into an argument he quickly continued, "That, of course, does not include the Autonomous Regions or city-level provinces like Shanghai."

I thought that sort of thinking was reserved for government types, but I have to keep in mind that this guy was traveling as a part of a Chinese delegation, so I should have expected him to toe the Party Line.

The second interesting number came up when my colleague asked our guest how many children he had. "Only one. Those are the rules," he glumly replied. I could have been the Ugly American and said "I also only have one, but I was FREE to make that choice!", but being the polite businessman that I am I nodded gravely and changed the subject.

But I couldn't help wondering if he ever let his angst with the second number conflict with the pride he had in the first number.

The Sign of a True Ukrainian

Never let go of your bottle of vodka:

A thirty-year-old Ukrainian male fell through the ice and remained in ice-cold water for 20 minutes but never let his bottle of vodka go.

As they say, read the whole thing.