Frequent-flier programs here to stay, airlines say By Christopher Elliott, Special for USA TODAY Peter Dowling is a Premier Executive 1K member, the most elite United=20 Airlines frequent flier. He's not sure how long that will last. I have just= =20 cashed in all my miles," says the Los Angeles foreign affairs consultant.=20 He booked two trips: one to Tonga on United partner Air New Zealand, the=20 other to Portugal on Lufthansa. "I believe, unfortunately, that United will= =20 go the same way as Braniff and Eastern." With United and US Airways in=20 bankruptcy reorganization and other carriers changing the rules of their=20 programs, some travelers are quietly redeeming their frequent-flier miles.= =20 Based on the recent actions of both airlines and anecdotal reports of=20 passengers rushing to redeem their points, it's possible that more=20 travelers are trying to unload their miles than at any time in recent=20 memory =97 perhaps even since the creation of these loyalty programs. "It=20 isn't so much a run on miles as it is a trot on miles," says Tim Winship, a= =20 mileage expert who edits the Web site FrequentFlier.com. "People are=20 worried about the safety of their miles. A lot of them are cashing in their= =20 points earlier than they would have." The ailing airlines insist there's nothing to worry about, that the points= =20 are perfectly safe. When a major airline stops operating, frequent-flier=20 miles and benefits normally transfer to another carrier. In announcing its= =20 Chapter 11 filing late last year, United assured its customers they will be= =20 able to continue earning and redeeming mileage. At the time of US Airways'= =20 bankruptcy filing, CEO David Siegel promised travelers that his airline's=20 mileage program "will continue to offer millions of fliers significant=20 award benefits throughout the restructuring process and beyond." Dowling=20 says he isn't buying it. He lost both his miles and his elite status when=20 Ansett Australia went under last spring. "I'm not willing to lose my miles= =20 again," he says. Neither United nor US Airways will say what's happened to= =20 their mileage redemption levels since they filed for bankruptcy=20 reorganization. Airlines typically disclose such information in annual=20 reports filed with the Securities and Exchange Commission, but the 2002=20 reports aren't out yet. Hal Brierley, one of the architects of American Airlines' frequent-flier=20 program and a loyalty program consultant, says passengers are "prudently=20 accelerating their use of miles." Among travelers with a preference for=20 United, he says, 34% of respondents to a recent survey say they've stepped= =20 up their mileage use. That doesn't necessarily mean road warriors think=20 these programs have reached a dead end. Brierley says only about 3% of the= =20 frequent travelers he's polled believe their program would be terminated.=20 About two-thirds think future mileage programs would be "less rich," and=20 slightly less than a third of them are convinced that their program would=20 be "significantly less rich." "It's virtually inconceivable that the=20 industry would walk away from a program that identifies its best customers= =20 and provides a meaningful reward," he says. "But I think mileage programs=20 are going to evolve." At the same time, the airlines are trying to entice travelers =97=20 particularly business travelers =97 with generous mileage deals. US Airways,= =20 for example, offered triple miles for United frequent fliers who booked=20 shuttle flights last month. United is giving Mileage Plus members double=20 miles on all flights, but the offer is limited to existing frequent=20 travelers within certain geographic areas, according to Winship. He says=20 the carriers hope the deals will restore public confidence in the mileage=20 programs. Travelers like David Smith, an advertising executive from San=20 Francisco, are skeptical. "I've been aggressively using my miles," he says.= =20 "To me, it's like money in the bank that doesn't earn interest and could be= =20 eliminated if an airline went belly up." Although most experts believe the odds of any airline =97 even one under=20 bankruptcy protection =97 eliminating its frequent-flier program is remote,= =20 it's hardly unanimous. Charles Leocha, author of the book Travel Rights,=20 says he thinks the mileage programs could face serious cutbacks, if they=20 aren't eliminated entirely. He points to changes by the likes of Delta Air= =20 Lines, which recently announced that on deeply discounted coach tickets,=20 passengers would only earn half the miles they used to that can be counted= =20 toward elite status. "Believe me, when push comes to shove, loyalty=20 programs will be curtailed in order to contain potential costs and future=20 liabilities." His advice: cash in your points while you still can. That's=20 exactly what Jacquelyn Peterson is doing. She redeemed 360,000 miles on=20 Delta (which isn't in bankruptcy court) for three business-class seats to=20 South Africa. And, while she's not quite ready to give up her United=20 Airlines mileage account, she says, "I'm keeping a close eye on it." *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.atlanticlng.com TnT Webdirectory: http://search.co.tt *********************************************************