Is Low Cost Airlines Really Cheap?

While booking trips for my Miami Spring Break trip, a friend of mine told me that it is cheaper to fly with Spirit Airlines than American Airlines. AA price is $300 while Sprit Airlines is $238 so it caught my attention. A question comes up in my mind instantly: Is low cost airlines really cheap?

I have flown LCA before and they are not bad at all.  However, what I hate most is the “optional fees”. Even though they are “optional”, one cannot avoid paying these fees in order to book the ticket. The nice thing about having LCA is the competition between them and legency airlines, thus lower fares that benefit customers.

A quick look at Spirit Airlines optional fees gives me a quick answer for my question. Assuming one travels with one carry on plus a personal bag, no checked bags, online check in and seating assigned at the airport, here’s the breakdown of all the cost:

Spririt charges $28 for a carry-on each way. It costs about the same to check a bag, however Spirit allowance is only 40 lbs instead of 50 lbs with legency airlines.

Another to imporant factor is that Spirit Airlines departs from Atlantic Airport, which is over an hour drive from Philly. Not only I have to wake up early, I would also have to arrange transportation which cost extra $.

On the other hand, as an EXP on AA, I enjoy first class upgrade, free checked bags, priority services and I can jump on the 15 minutes train to the airport. It’s pretty clear that in my case, low cost airlines is not really cheaper.

LCA may work for you if you fully understand what you’re getting into. For instant, Spirit $9 fare club sounds really good for weekend getaways. However, in my opinion, average travelers will not save much if any from LCA. Not to mention you can reach Star Alliance Silver for several years with a simple transcon flight (Aegean Airlines program), which gives you free checked bag, priority services and no charge for carry on with United and US Airways.

Update: A great video explanning how LCA works:

Picture of the Day

(Disclaimer: I did not set it up;)

The New United Drama

As you may heard, United merged 2 PSS to one this weekend. I have to say they have done an amazing job keeping everything running. However, I have my first MR of the year on United this Tuesday and it's not looking good:(

First off, It makes no sense to me that United chooses A319 on this PHL-SFO transcon. I have seen so many GS in coach on this flight. I have no hope whatsoever for upgrades. 8 F seats on a transcon is unacceptable! A B757 is the right one on this route, not the freaking A319!

Second, due to the PSS integration, I lost most of my assigned seats. The picture below explains it all:

The only seat leftover is the middle seat on the last row of EMB-120. FML.

Third, United new Boarding Groups has some issues. There are too many boarding groups which means it will not be seriously enforced by the GAs. The golden rule is less is more. How does pre-boarding different from boarding? You either board the plan or you don't. Why don't just assign them group 1 instead? Clearly United is shooting in their own foot here.

I also don't agree with uniformed personnel to board with GS. Let me be clear that I greatly appreciate their sacrifice for the country, however it's clear that uniformed personnel are not the most profitable customers. They could have board with Group 2,3,4 or 5 (Elite Boarding) and still get plenty of time to get overhead bin space and settle down. In my opinion, this is a pure political move. Not to mention I'm not sure how they will deal with foreign troops, especially when fights departs from overseas.

I'm extremely happy to fly again especially to test the "new" United. However, after trying out the dAArk side last month, my prediction is the grass is greener on the other side:-P

Til we meet again, Continental Airlines

RIP Continental, it has been a crazy fun 3 years. Your flights depart on time, arrive early, DirecTV is a big plus (in F w/o extra charge of course), and your food is excellent. Despite the lack of vouchers, I still like you. I definitely will miss you ( not the ugly globe icon though:-P).

Til we met again, Continental (PMCO FA that is;)

PS: Please, for the love of God, replace the A319 on SFO-PHL route with something better. I'll never get upgrade on this freaking flight!

Getting back on track

I just got back from a 5-day conference at Charlotte, NC. While I had a great time (who doesn't love Westin Havenly Bed ;), my life is a mess right now. My inbox is overflowed with emails waiting for response and I have a midterm tomorrow. Not only that, I lost my Kindle which has all of my receipts that I need in order to get reimbursed. FML. It will take me a little time to get things back on track. Hopefully I'll post some good stuff over the weekend. Travel isn't always fun:-/

Go Bald

Sarah is amazing!

Meet Sarah from Bethlehem, PA. She is diagnosed with Acute Lymphoblastic Leukemia at the age of 5. She has been fighting for over 3 years and she will continue going strong. Despite the pain, she has an amazing strength and she is still a delightful and happy kid. She makes me realize how lucky I am to have good health and to have the opportunity to enjoy the freedom of travel.

This year, I take part in fundraising for the St. Baldrick's Foundation by having my head shaved. This is the first time I go bald so I'm very excited.  St. Baldrick is a great all-volunteer charity and last year we raised over $30,000. Our goal for this year is $35,000 while my personal goal is $500. Please support me in giving hope not only to Sarah but also to infants, children, teens and young adults fighting childhood cancers. Whether $5 or $50, every cent counts. Thank you for your support!

Click here to make a donation.

PS: Don't forget to check your employer's donation matching policy
PPS: You can use AMEX SPG card to earn points for your donation:D
PPPS: I will post my pic before and after I shave my head. Look for it in March!

Credit card churning for young adults - Part 4: Choosing the Right Cards

Part 1: Background

Part 2: First few months

Part 3: Building Credit History

Part 4: Choosing the Right Cards

Part 5: Meeting the Spending Requirements

Part 6: Taking Care of Credit Reports

Part 7: Conclusion

Choosing a card is a very subjective decision since it depends on one's needs. For the sole purpose of churning cards while having a limited credit, consider these factors:

•  Get a card that you can actually keep for a long time

With a limited credit, opening and closing cards in a short period of time would hurt your credit age. It is essential that you choose the right card that you intend to keep for a long time.

• Get an AMEX first, others later

Creditors like to see AMEX. You are more likely to get approved to other cards if you have one. AMEX charge cards are easier to get approved than regular credit card.

• Apply for 2 cards from the same issuer on the same day

When you apply for 2 cards from the same issuer on the same day, chances are 2 credit pulls will be combined into one. With some exceptions (e.g: Chase will automatically decline your 2nd application), you have nothing to lose when you apply for the 2nd card.

Here are some cards I recommend:

1. Chase Sapphire Preferred Card (SP)

In my opinion, one of the best travel cards available: 2 points for dining and travel (air ticket, car rental, etc), 1 points for everything else, no foreign exchange fee, great customer service. I love its design since it's made from metal and the number is in the back. Points can be transferred to several programs such as United, Hyatt, etc. Current public offer: 50,000 points after $3k spending in 3 months. I don't recommend this card if you have less than 1 year old credit history though.

   2.  AMEX Zync

An easy card to get approved. There are several packages for you to choose, however I don't recommend the additional fee ones since they have a very low 6,000 points cap/packages. All transactions earn 1 point/dollar, with bonus if you have the packages. Some packages are very interesting (e.g: earn points for volunteer work). A good card for low spenders. Be aware that this cards gives you Membership Reward Express, which you cannot transfer to other airlines programs. However, if you own a MR AMEX (Green, Gold, etc), these points will become regular MR points. Current public offer: 10k points after first purchase, $25 annual fee. A better bonus (10k points and no annual fee first year) is only available through referral, so leave a comment below if you are interested.

   3. AMEX Starwood Preferred Guest(SPG)

Starwood points are very valuable. You can easily get 4-5 cents/point with Point & Cash redemption. Not only that, you can transfer 1:1 ratio to a lot of airlines. Every 20k points transfer they will give you an extra 5k! Earn 2 points per dollar at Starwood properties, 1 points for everything else. Be aware that this is a credit card so it has a firm limit and it's harder to get approved as well. Current offer: 25k points after $5k purchase in 6 months.

  4.  AMEX Premier Rewards Gold (PRG)

The most rewarding MR card: earn 3 points on airfare, 2 points on groceries and gas, 1 points for everything else. MR points can transfer to other airlines programs. Current offer: 25k after $3k in spending in 3 months, no annual fees first year. Not hard to get approved.

A word of caution: I wouldn't apply for AMEX PRG now since the offer is very weak. I would wait for a better one(50-75k points sign up bonus).

To take advantage of all of your cards, use them based on your purchase types. For example: Use PRG for gas, SP for dining, Zync at "green" store (e.g: Trader Joes, etc) and SPG for everything else. This will maximize your earning power and get the most our of your spending.

Notice: this post is entirely my own opinion. I am not an certified financial advisor. Do at your own risk. I am not affiliated with any credit card company nor do I earn any commission (except for the AMEX Zync referral, which I earn 5,000 MR points if you get approved).