Re: NYTimes.com Article: Two Airlines to Ease Frequent Flier Rules

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Why bother.

They need to see what WN's Rapid Rewards <Frequent Flyer> rules are all
about.  Capacity controls and black-out dates are few and far between.  Not
to mention 4 roundtrips equals a free round-trip.........= Happy customers.

Walter
DCA
Fan of WN's Rapid Rewards Program

----- Original Message -----
From: "Bill Hough" <psa188@juno.com>
To: <AIRLINE@LISTSERV.CUNY.EDU>
Sent: Wednesday, January 23, 2002 22:44
Subject: NYTimes.com Article: Two Airlines to Ease Frequent Flier Rules


>
> By LAURENCE ZUCKERMAN
>
>
>
>
> Northwest Airlines (news/quote) announced yesterday that it
> would be the first domestic airline to eliminate blackout
> dates from its frequent flier program, enabling its
> customers to redeem miles for travel on any day of the
> year.
>
> But within hours American Airlines, which said last year
> that it would eliminate blackout dates in 2003, accelerated
> its plan and said that it would lift its restrictions by
> Feb. 1, one month before Northwest.
>
> Analysts said that the moves were less consumer-friendly
> than they appeared because the date restrictions were not
> much of an issue. The bigger problem from a consumer's
> standpoint, they said, are the limited number of seats on
> any one flight that are available for frequent flier
> redemptions.
>
> The significance of Northwest's move for consumers was
> further diminished by its decision to raise the number of
> miles needed to obtain a round-trip ticket during the
> nonsummer months.
>
> "Blackout dates have never been the real problem," said
> Randy Petersen, the publisher of InsideFlyer magazine. "The
> real problem has been capacity controls."
>
> Northwest acknowledged this by warning yesterday that fewer
> seats would be available to be redeemed during the peak
> travel periods around holidays that have been blacked out
> in the past.
>
> "We feel it is important for us to be candid about the
> availability of award seats during peak times of the year,
> or to the most popular destinations," said Beth Shultis,
> Northwest's vice president for marketing programs.
>
> The airline had been planning to fence off 13 days for
> domestic travel this year that would not be eligible for
> frequent flier redemptions. Blackout dates vary by
> geography because of the differing holidays around the
> world. But Northwest said it would end blackout dates
> across its entire network, which includes extensive
> operations in Asia.
>
> American, which operates the world's largest frequent flier
> program, planned to have only 12 date restrictions on its
> network this year, with none in Japan and Europe.
> American's frequent fliers with elite status are already
> exempted, a perk that is not currently offered by
> Northwest.
>
> Chris Nardella, a spokesman for United Air Lines, a unit of
> the UAL Corporation (news/quote), said that the airline had
> no immediate plans to match Northwest and American, a
> subsidiary of the AMR Corporation (news/quote). She added
> that United's lowest redemption rate, which allows
> passengers to book a domestic coach ticket for 25,000
> miles, excludes certain dates but that 40,000 miles earns a
> ticket with no blackout restrictions. Elite members are
> also exempted.
>
> Like a few other carriers, Northwest had been requiring
> frequent fliers to accumulate only 20,000 miles before
> being eligible for a domestic coach ticket during the
> off-peak nonsummer months. But yesterday the airline said
> that, beginning June 1, it would raise that level to 25,000
> miles all year.
>
> That is a much more significant change than the elimination
> of blackout dates, analysts said.
>
> Continental Airlines (news/quote) made a similar change a
> few weeks ago, igniting protests from some of its frequent
> fliers, according to Mr. Petersen. The airline made the
> move despite a note to passengers from Gordon M. Bethune,
> Continental's chairman, in the January issue of its
> in-flight magazine promising no changes in the frequent
> flier program this year.
>
> David Messing, a Continental spokesman, said that Mr.
> Bethune's letter was written in November, before plans for
> eliminating the off- peak award were finished. "The overall
> thrust of the letter is correct," he said. "We are keeping
> the things in place that matter most to our customers."
>
> Northwest said that the lower mileage requirement had
> failed to persuade people to shift their redemptions away
> from the peak summer travel season. "Most customers make
> the choice on when they travel based on factors other than
> the number of miles," said Kurt Ebenhoch, a Northwest
> spokesman.
>
> About 70 million people were members of frequent flier
> programs in 2000, and there were about 6.6 trillion
> unredeemed miles outstanding at the end of that year,
> according to Webflyer.com, Mr. Petersen's Web site.
>
> As a rule, the airlines allot about 10 percent of their
> seats for frequent flier redemptions. But the actual number
> of seats varies greatly from flight to flight because the
> sophisticated computers carriers now use to gauge demand
> are constantly shifting the number of seats available at
> various price levels.
>
> Availability also changes by the day, so a flight that is
> sold out for mileage redemptions today may open up a month
> from now. "You can't hesitate when it comes to claiming an
> award," Mr. Petersen advised. "But you should also be
> patient and keep trying."
>
>
http://www.nytimes.com/2002/01/23/business/23FLY.html?ex=1012843877&ei=1&en=
930b303ae4db0a9c
>
>
>
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