Airlines: Frequent-Flier Miles

In post-911 era airlines have been squeezed
hard by high labor and jet fuel costs. In addition
to that, each has lots of long-term debt hanging
over its head, including underfunded pension
plans. And on Oct. 17, changes in bankruptcy law
will make it harder for companies to cancel their
debts. To take advantage of the old laws, Delta
and Northwest have already filed for bankrupcy.

Probably their passsangers will not get much affected by such moves. Both
airlines promised to honor all tickets already issued. But the airlines are
free to change schedules and cut routes and there could be some service
disruptions too.

Probably nothing will affect their frquent-flier miles. In cases of past
bankruptcies, the airlines have done their best to honor frequent-flier
plans. But, there is no certainty about bonus and promotion programs.
Due to the need to cut costs, that is something that will no doubt be
examined and probably modified to some extent.

In this era while airline perks keep disappearing, and fares keep rising,
there's however some good news for frequent fliers: American Airlines
and United Airlines are slashing the miles needed to book free shorter
domestic flights, from 25,000 to 15,000 only. The moves are due to
pressure from low-cost carriers like Frontier Airlines and American West
that award free trips after 15,000 miles . But book soon: The United deal
expires on Dec. 31; American will run the reduced-mileage rate through
Feb. 28.