Flash News #1: Asia Miles has devalued yet again. Award devaluations are the general trend across airlines, and the most effective way to avoid losing value is to burn your miles. Asia Miles had just gone through a devaluation in June 2018, and now it has been devalued slightly once more. This round is concentrated in the 2,751–5,000-mile redemption band. The changes are as follows (the number in parentheses is the new mileage price after the devaluation): Economy 25,000 (27,000), Premium Economy 35,000 (43,000), Business 50,000 (61,000), First 75,000 (87,000). That works out to a devaluation of about 8%–22%, with Business Class seeing the biggest hit. Redemption rates in other distance bands have not changed for now. Given that Asia Miles does not publish an official award chart, and Cathay Pacific’s recent performance has declined significantly, another devaluation could happen at any time. H/T: Feicha
Flash News #2: According to a Reuters report, on September 26, LATAM Airlines (a oneworld member) and Delta Air Lines (the leading carrier in SkyTeam) reached an agreement under which Delta will acquire a 20% stake in LATAM for $1.9 billion, while also providing an additional $350 million to help cover LATAM’s cost of exiting oneworld. There is not yet a formal timeline for leaving the alliance, but LATAM plans to exit oneworld at an appropriate future time in accordance with the agreement.
Chain Reaction: LATAM is oneworld’s only alliance carrier in South America, and it is also one of Alaska Airlines (AS)’s partners. Once it joins the “SkyTeam” camp, how many ripple effects will this trigger?
Could China Southern be the biggest winner? KUKU in mainland China also hopes China Southern can join oneworld. That would give oneworld stronger capacity in mainland China and more connecting options within China as well.