SF Gate: Delta Frequent Flyers claim rewards don't come easy

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inancial1343EST0169.DTL
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Tuesday, January 28, 2003 (AP)
Delta Frequent Flyers claim rewards don't come easy
COLLEEN DEBAISE, Dow Jones Newswires


   (01-28) 13:15 PST (AP) --
   NEW YORK (Dow Jones/AP) -- A group of customers has filed a lawsuit
against Delta Air Lines Inc., claiming it's too difficult to use
frequent-flyer miles.
   The Delta frequent flyers contend that the airline's program, SkyMiles,
started out as a "miles-flown" loyalty program, but has evolved into a
larger marketing tool where Delta awards the majority of its miles to
credit-card users and buyers of promotional items.
   As a result, Delta has adopted numerous restrictions, including blackout
periods, capacity controls and expiration dates "that make it ever more
difficult for plaintiffs ... to obtain fair value for the miles credited
to their accounts," according to the suit, filed Monday in Manhattan
federal court.
   Reid Davis, a Delta spokesman, said the company doesn't comment on pendi=
ng
litigation.
   The plaintiffs also claim Delta has engaged in a pattern of "threats and
intimidation" in order to prevent frequent flyers from selling, exchanging
or bartering their SkyMiles.
   At the same time, Delta and other air carriers have formed entities such
as Milepoint.com -- whose Web site allows users to exchange miles for
cruises, hotel stays and magazine subscriptions -- in violation of
antitrust laws, the plaintiffs allege.
   Delta and the other airlines use Milepoint and similar ventures as the
"vehicle by which they jointly restrict, restrain, limit and control the
market" for frequent-flyer miles. "Such price-fixing is unlawful," the
plaintiffs claim.
   The suit, filed on behalf of all members of Delta's SkyMiles program,
seeks an unspecified amount in damages, and a court order banning Delta
and other airlines from forming ventures like Milepoint.

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Copyright 2003 AP

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