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Wednesday, December 3, 2008

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08/25/08 06:54 AM

Frequent flier perks curtailed

Passengers hunting for a better deal

WASHINGTON POST

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WASHINGTON — Scott Zaban only flies United Airlines. As a loyal frequent flier, the 33-year-old writer from Washington, D. C., is used to being pampered with seat upgrades and ticket awards.

But like a lot of air travelers, Zaban has been caught off guard by a wave of restrictive changes that carriers, including United, are making to their frequent flier programs. Airlines, attempting to counter high oil prices by cutting back perks, are putting new restrictions on seat availability, imposing online booking charges and boosting the number of miles it takes to get upgrades or free tickets. They’ve also added an assortment of fuel surcharges and co-payments to the programs.

Zaban says he’s vexed that it’s taking the airline longer to clear his requests for first-class seat upgrades. In the past, using frequent flier miles, he was able to get them days before take-off. Now he’s getting upgrades just hours before his flights, if at all.

“I can’t get upgrades,” he said. “I have found that to be really annoying.”

Mark D’Arrigo, an attorney from Arlington, Va., is shopping around. D’Arrigo has been an elite-level member of the US Airways frequent flier program since 2003. He’s irritated by the company’s announcement that it will stop giving out the extra miles it had been to its most frequent fliers. The airline has also started charging travelers as much as $50 to redeem tickets using mileage awards.

“I’m reevaluating whether US Airways is the program for me,” D’Arrigo said. Earlier this month, he signed an online petition of 2,341 US Airways customers protesting the change.

Despite the complaints, US Airways spokeswoman Michelle Mohr said the company won’t scrap the policy change.

Mohr said the “vast majority” of frequent fliers have told the airline that they are most interested in convenience and upgrades, rather than bonus miles. She said US Airways stands to realize tens of millions of dollars in savings from the elimination of bonus miles and the subsequent reduction in free tickets.

American Airlines kicked off the frequent flier trend with the industry’s first program 27 years ago. It was invented to reward the most heavy-duty frequent fliers. The programs have evolved to include people who don’t fly very often. Many earn mileage points through credit card and marketing promotions.

Each program has specific rules and award levels designed to satisfy loyal customers. Airlines use a combination of variables to determine the availability of frequent flier seats, including season and popularity of destinations.

Rick Seaney, chief executive of FareCompare.com, an airline ticket research site, said airlines run the risk of angering their best customers with the loyalty program changes.

“I don’t understand why the airlines think they need to do this,” he said. “They are basically watering down the points by changing the programs.”

There’s likely to be little improvement. Seaney predicts that there will be a total of 70 million fewer seats available on airlines next year following the route and frequency cuts they have announced this year. He said that means that planes are going to be packed, giving the airlines even less reason to give away seats.

He and other travel analysts say travelers should book tickets as soon as possible to try to escape some of the fees that haven’t hit yet. Effective Sept. 3, Continental will make it harder for customers on the low-end of its frequent flier program to get seats on high-demand flights. On Oct. 1, American Airlines will impose a nonrefundable “co-payment” of $50 for one-way upgrades for frequent flier customers who buy economy tickets for U. S. destinations. The fee rises to $350 on some international routes.

Last week, Continental imposed a $75 booking fee for customers who don’t book tickets three weeks in advance. As of the week before, Delta frequent flier customers have to pay a $25 fuel surcharge to redeem tickets for travel within the United States and Canada and $50 on international routes. American Airlines is charging a $5 online booking fee, which went into effect June 21.

The one silver lining to the program changes: Airlines have made it easier to learn online which flights don’t have available seats.

“At least you don’t have to waste your time finding out you can’t find a seat,” Seaney said.


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