Monday, September 17, 2007

  Buckle Up. The Friendly Skies Are Taking Your Miles

The airline frequent flier program has become a staple of American consumerism. The concept, which borrowed heavily from the trading stamps of a generation earlier, is designed with one single purpose: keep fliers brand loyal.

We admit that it has worked at Consumer Help Web. Our informal poll around here showed that at least two people have paid more to fly on "their" airline. How much more?

"Never more than $100," said George.

Fine, but how many times did you do that?

"A couple. Okay, maybe like five."

So our free spender, who paradoxically is our best researcher, spent about $500 just for the privilege of adding miles to his account. Why?

"I wanted to get my million miler status," he said, before sheepishly admitting that he was still less than halfway there.

Still, nearly 500,00 miles is big brand loyalty. An airline would seem to want to do anything to create that level of loyalty. That's why we don't understand United's latest move.

In a letter to frequent fliers this month, the airline that flew out of bankruptcy protection announced that a mileage balance will be zeroed out if a customer has not earned or redeemed miles during an 18 month period.

We understand that managing the liability and the accounting of this golden goose program is expensive. What we don't understand is how an airline in an industry that is battered by poor service for the last 12 months can put the proverbial gun to consumers' heads.

The letter lists many ways a consumer can keep their miles active. They include using a United-branded affinity credit card or buying miles if they're not flying. The whole concept adds up to one thing: regularly use United or lose all of your miles.

In a paragraph we can only call chutzpah, United rewarded consumers who stuck with the airlines when amenities died by writing this gem:

"This change preserves more seats for our most loyal customers, which is good news for you. Keep your account active, and you'll compete with fewer people for free* award travel on United*."

First, any sentence that purports to be a consumer benefit that has two footnotes should set off alarm bells. Second, was there something in the office coffee that day? Our translation of the legacy carrier's statement is this:

"Use our services more often or we'll eliminate the 'loyalty' premium we gave you."

See you around the friendly skies.

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