Delta toughens rules for 'elite' club

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Delta toughens rules for 'elite' club
By Chris Woodyard, USA TODAY

The USA's No. 3 airline is braving the ire of some very frequent fliers by=
=20
raising the bar for the perk-rich top tiers of its SkyMiles' program. Under=
=20
revisions that took effect Jan. 1, Delta Air Lines customers are going to=20
have a harder time qualifying for the Delta silver, gold or platinum=20
Medallion levels in 2004 if they buy lots of deep-discount tickets this=20
year. But they can qualify faster if they buy more full-fare tickets. Under=
=20
Delta's new rules, only 50% of the miles flown on deeply discounted coach=20
seats count toward achieving or retaining elite status next year, instead=20
of all of the miles. The penalty is coupled with inducements to buy more=20
expensive tickets: a 50% mileage bonus for full-fare coach and double=20
credit for business- or first-class passengers.
Delta also discontinued the practice of counting flight segments =97 a=20
benefit for people who make many short flights =97 toward top-tier status.

The changes do not affect credit earned toward SkyMiles award travel.=20
Delta's new formula is believed to mark the first time in the 21-year=20
history of frequent-flier miles that a major U.S. airline has so decisively=
=20
linked a customer's status and perks with revenue generated. Reaction has=20
been strong: "The changes to the Delta program are devastating," says=20
Walter Schild, CEO of a software company in Los Angeles and a Delta=20
million-miler. "This is the biggest devaluation of benefits I've personally=
=20
ever seen." Chris McGinnis, editor of The Ticket newsletter in Atlanta,=20
where Delta is based, says he has seen an overwhelmingly negative reaction=
=20
to the changes. "Of all the stuff Delta has done, this one has received the=
=20
largest response," he says. Fliers "are extremely angry about it."=20
Frequent-flier mile guru Randy Petersen, publisher of InsideFlyer, says=20
"99.9%" of Delta's top passengers are against it. Fliers still need 25,000=
=20
miles a year to qualify for the lowest silver Medallion level, 50,000 for=20
gold and 100,000 for platinum. Non-flying bonus miles earned from partners=
=20
such as hotels, rental cars and credit cards count toward free trips but=20
generally not toward elite status.

Ttravelers say the perks that come with elite status make qualifying worth=
=20
the hassle. They get goodies such as pre-boarding privileges, seating class=
=20
upgrades and sometimes even complimentary airport club memberships. Airline=
=20
spokesman John Kennedy says the changes are aimed at making sure passengers=
=20
who spend more on tickets are properly rewarded. "We've done this very,=20
very carefully," he says. It's expected that as many people will gain entry=
=20
to Medallion levels as will be excluded from them, Kennedy says. Fewer than=
=20
1 million of Delta's 32 million frequent fliers are Medallion members.=20
Bigger Delta competitors, such as Northwest and Continental, have recently=
=20
added extra inducements to attract elites. Some Delta fliers may already be=
=20
defecting. AirTran Airways, a rival discount carrier with its hub in=20
Atlanta, believes it is luring some disgruntled Delta frequent fliers,=20
spokesman Tad Hutcheson says. Calling Delta's move "outright arrogance,"=20
David Lorenz, an advertising director from Acworth, Ga., says, "I am giving=
=20
serious thought to changing airlines even though I fly in and out of=
 Atlanta."
Some customers say they think they'll benefit from the changes. Atlanta=20
advertising executive Karen Boor says the changes may make more first-class=
=20
seats available for purchase. Many now are given to fliers who use seat=20
upgrades. David Warkoski, who lives near Atlanta, says he's "elated" with=20
the changes: "I have met so many platinum fliers on Delta who achieve=20
status by flying a minimum of real trips, connecting through Atlanta on=20
dirt cheap fares. The new system rewards those who pay the most."



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