Frequent Flyer 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 after Oct. 17, changes in bankruptcy law have made it harder for companies to cancel their debts. To take advantage of the old laws, Delta and Northwest had already filed for bankruptcy.

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 do your reservation soon: The United deal expires on Dec. 31; American will run the reduced-mileage rate through Feb. 28.