Some Airlines Changing Unpopular Practices
Monday, December 8th. 2008
There was so much made of US Airways decision to charge for a pillow and blanket and Northwest charging for checking an extra bag that one could be forgiven for thinking that people were angry enough to never want to fly again.
Well, apparently some airlines are worried that people will never want to fly again. Or at least that people will never want to fly with their airline again.
Most airlines have rolled back their fuel surcharges as the price of oil has fallen. But all those frequent fliers who lost their airline miles are still up in arms. US Airways, which put a freeze on all frequent flier accounts earlier in the year, has announced that it is returning the reward programs to customers. Customers will again be able to accrue and use frequent flier miles. Frequent fliers will also be able to apply miles earned during the freeze to their accounts. The airline hopes this will bring some loyal customers, who left when the airline canceled the program, back into the US Airways camp.
Delta is also restoring some of its loyalty programs. Its preferred customer program was ditched but restored after members began to complain. Continental and United had similar flaps with customers.
All these so-called “legacy” carriers have had to walk a fine line between pleasing customers and escaping intact from the current economic downturn. Budget carriers like Southwest are trying to take advantage of the struggles of larger airlines. Southwest does not charge for checked baggage or other amenities and usually sets the standard for low fares.
So, to avoid a backlash and an exodus of loyal customers, the major airlines are scaling back on their benefit cuts. Other changes will probably follow. With newer airlines set to take a chunk out of the market if the “big boys” slip up, they seem to be, wisely, treading very carefully.