Originally Posted by
ozstamps
I think FT'ers are well ahead of the game at most times.
My feeling is the heavier fliers really only started experiencing glitches from March 3.
I really believe a ton of Million Milers STILL have no idea they get no CR1s a year "For Life" despite being assured in writing they would, and no 100% bonus going forward etc, etc.
So a large % of MM'ers right NOW have little idea of these changes.
And while they may well get annoyed later and curtail some or a lot of their flying,they have not done so YET.
So I'd be curious to see the Q2 and Q3 figures when they come out - not the Q1.
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Hi OZ-
Actually, the first quarter should be telling as far as cash coming into the company goes.
Even though you flew a lot early in the first quarter of this year, you most likely bought your ticket in 2011. The first quarter income statement would move your 2011 ticket purchase to the first quarter of 2012, the year and quarter you actually took your flights (when UA
earned the money).
This is called "matching" income (flying) with the expense even though your ticket was purchased in an earlier year.
If you bought your tickets in 2012, you would not be part of the equation that reflects defection of prior loyal flyers.
The cash flow statement does not center around income, it centers around the changes in cash. Therefore, even though the second and third quarters will be interesting to see, I suspect, if loyal customers really did change their allegiance to other airlines (
as many reported they did), we should see a marked reduction in cash based on the statement of cash flows.
I agree, most million-milers do not yet know what the new UA management did to them. Some will not know until next year when their two "lifetime" regional upgrades fail to arrive or when they take their first flight and earn only 50% bonus miles.
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