DCAproducer

Excuse this post if this is already being discussed, but I didn't see a thread on a quick scan of the forum.

There's a thread going on over at A.net about a major shakeup of SkyMiles and DL going away from giving miles for distance traveled and instead going to a system based on fare paid. (Sound kinda like Skybonus)

Here's the thread: http://www.airliners.net/aviation-fo....main/5416336/

Let the debate begin.
(of course, the source is A.net)

skchin

Rumor about a rumor.

HongKonger

If you heard a rumor about it then it isn't true. DL always makes program changes unannounced.

RealHJ

It makes sense (for DL, that is) and is quite likely to so happen, I think. I was just hoping that the current system would hold out for longer... as this will not work well with the rest of the SkyTeam airlines, and I am not sure how one ST airline can do this (fare based) while others are distance based, when mileage needs to be consistent earning (i.e. distance based) accross the entire ST, and can't be one way to earn for one segment of an itineary, another way for another. To honour ST mileage earning, then likely one would still earn DL based on the distance if one is a member of any program other than ST, so way around this would be to sign up for another ST airline FF program (e.g., KE) to keep earning DL flight miles (in another FFP) miles based on distance still, vs. fare. That is, if this comes to be...which I think it will, as I have long predicted (it makes business sense), I've only hoped it would be a few years later, not so soon.

+1. This is what makes me hope that it won't happen. Not quite yet. That it's being talked about, and it's not like DL giving any advance notice, official or unofficial.

SFO777

Can't see that one ever happening, unless DL wants a mass defection of elites to AA/UA/US/etc.

DHalltheway

The fact that DL has been very hush hush lately and has not introduced any enhancements has me thinking something big is about to happen.

But if they pull this off now, they sure have bad timing because they are starting to reap some benefits from UA's merger mishap

The day that happens, I will status match/challenge to UA!

rylan

^^^^This Post Right Here ^^^^

It would basically have to be coordinated not just across ST, but also with other airlines... since whoever does it first is going to catch a @hitstorm. I think AA and UACO are too busy with their own messed to even be looking at going this way as well, so I'm sure they'd love the mass-defections from DL.

MR_MAMA

This will cause me to leave and fly for price and not status. I have been loyal and top tier status between NW/DL for 15 yrs without really ever looking at other airlines. I fly cheap but fly over 125k a year always with connections. I love DL for the most part, get upgraded all the time, but Since I only fly domestic for business and we have strict limits of what we can spend per ticket, I am not top revenue on each ticket.

This could set me free! More Webex/video conferences in my future.

mtkeller

I don't like the idea, but I don't think it's as hard to implement as you're suggesting. NZ uses "Airpoints dollars" as their units, and they're based broadly on booking class and region and don't correspond strictly to flight length (Asia to Africa is 25 Airpoints dollars in discounted economy, despite drastic potential flight length differences, for instance), whereas most of the other *A members use a traditional system that looks like the US carriers.

bubbashow

Unless DL is hoping for a mass defection of "elites" in hopes of rewarding those that are contributing the most. I know it didn't work a few years ago in the SSM days, but the landscape is DRAMATICALLY different!

SFO777

How on earth would NZ and the competitive airline situation in New Zealand have any relevance whatsoever to DL and North America, or to any other place for that matter?

mtkeller

My point was simply addressed to RealHJ's concern about how on earth DL would implement it, not the competitive situation in North America. DL could very easily start awarding its members "SkyPoints" based heavily on fare class and then by regions, regardless of SkyTeam member flown, while other programs still handed out miles/kms to their members even on DL metal. I agree that it'd be the quickest way for them to help out COdbaUA by stemming elite defections, but it could still fit within SkyTeam without the logistical issues.

rylan

Thing is, this would be the first major US airline to do this (not counting WN etc since they don't fly intl), and you just know that the implementation would be screwed up something awful.

Delta has already accounted for having a lot of elites and giving a lot of miles out... redemption rates for low level awards are practically non-existant and they've gutted the upgrade program with FCM for domestic and very high M fares for intl.

mtkeller

Probably the most likely development would be making some changes to the elite program a la AA: sticker upgrades for those below DM and things like choice benefits handed out based on points and not miles, with discounted fares earning far fewer points than full economy fares which would earn less than first/biz. Of course, how would the AmEx gods feel about that? I guess you could still get precious "points" by having the right magical AmEx?

LedgeT

The Loyalty Program is comprised of two projects that seek to increase revenue and customer loyalty along with
decreasing liability related to unused award miles. Coordinated communication to the general public regarding the
intentions of these changes is paramount to acceptance.

Revenue Based Mileage Accrual (RBMA) project shifts the basis for awarding miles to a revenue based accrual approach
Release 0: Support the communication/announcement of upcoming SkyMiles program changes (targeted 1Q12).
Will no longer display distance flown miles for departures after new miles accrual effective date (targeted for 3Q12)
Release 0.5: Provide Mileage Calculator to calculate approximate revenue based mileage accrual based on travel
after launch ((targeted 2Q12)
Release 1: Convert SkyMiles System from flown miles to revenue based mileage accrual (3Q12)
Release 2: Reward SkyMiles members with miles for all non-air purchases (i.e. SkyClub, Seats) (currently On Hold)

Fare Based Award Ticket Redemption (FBATR) project
Fast Track Release – Provides limited base functionality to align with the Polaris Chicago release timing

Phase I at Launch introduces Fare Based Award Redemption Model, Single Shopping Experience for Customer, New Award Inventory Controls, Cash + Miles Award Redemption Product, Award Redemption for OA, Modifications to the automated Award Refund, Redeposit, and Reissue and Exchange Process

Phase II – After Launch includes Bid for Price Award Redemption Product, Buy It Now Award Redemption Product, Volume Discount Award Redemption Product, Modifications to SkyMiles Branded Mileage Upgrade Products, and Modifications to SkyMiles System-Wide Upgrade Certificates