I read the most interesting story today on LA Times.
It is about frequent-flyers that purchased unlimited first-class travel tickets from
profitable American Airlines in the 80s and 90s. They even had a perk to take a companion for a low cost as well.
They basically purchased their tickets for what the company thought was a lot of money back then but the buyers have travelled so much that the company is losing too much money.
[highlight]Each holder was costing costing American more than $1 million a year.[/highlight]
If Air Canada or Westjet had this I would purchase it (if it was a reasonable price) – it would be fun just travelling first class.
If you haven’t travelled first class before you do not know what you are missing.
For a period of a year I was an Alaska Airlines MVP (meaning I was bumped to first-class when their were seats available and no one wanted to pay).
I have also travelled first class with Air Canada and I loved it! My wife and I didn’t want to leave the plane.
So before any Canadians want to bash our national airlines, trust me the ones in the US aren’t that much better.
It is a tough industry and I have no clue why anyone would buy any airline company stock!