RealDLInsider - Update
Nov 13, 2008, 8:29 am
#1
Company Representative - Delta Air Lines
Original Poster
Join Date: Jan 2007
Location: Atlanta, GA
Posts: 34
RealDLInsider - Update
FTers,
Over the last several weeks, I’ve been pretty quiet out in FlyerTalk, primarily because we’ve been very busy here working to consolidate our two airlines and our respective loyalty programs. Wanted to share with you some of the highlights of where we’ve come, a few facts that you might find interesting, and what we are currently working on:
• Organizationally, we will be consolidating the NW and DL loyalty teams into one organization, and will likely be accomplishing this throughout 2009. We intend to consolidate the two loyalty programs into one program, that we are fully committed will be “best-in-class,” and will align the organization along with the program integration needs.
• The program integration will occur prior to the end of 2009, unless we run into any major technology or contractual hurdles. At this point, we don’t believe we will have any major hurdles, and should have the programs integrated in 2009. With that said, we have two co-brand contracts at this point, between US Bank and American Express, and we are currently working through these contractual issues. For both of our co-brand card holders, the miles you are earning from either card are safe and you will have even more ways and routes to redeem with the combined network. Again, for all SkyMiles and WorldPerks members, your miles will be safe and your status will be secure.
• We also have very different technology platforms, and have selected the NW loyalty platform as our ultimate base. As a result of this choice and these ultimate contract resolutions, the exact timing of integration in 2009 and how program benefits roll-out is still up in the air.
• In terms of program benefits for 2009, the two elite programs and rewards programs are already today very similar. You can already earn and burn on either airline, and with the launch of elite reciprocity just three weeks ago, you can now be recognized as an elite on either airline and use your complimentary upgrade benefits when flying either NW or DL. The prioritization of customers is now integrated, and all Platinums will clear on NW and DL operated flights together, prioritized within tier by fare class. NW and DL customers are prioritized first, and then other airline customers who we have an alliance with, clear thereafter. We’ve seen many people comment on the belief that it will be hard to upgrade, and for most of you, it will not be a material or noticeable impact. This is true primarily because NW customers and DL customer travel patterns really don’t overlap that much. Where you will see the most impact, is in hub to hub flying – particularly MSPATL and DTWATL. In fact, we will likely be upgrading aircraft in these markets anyway, which should provide more seat availability.
• In the next 30 days, we will be announcing a few additional program changes that will better align our two programs even more closely. The intent is to have the two programs almost identical throughout 2009, and for customers to be indifferent as to which program they play in. Given complexity in technology however, there will still be a few differences during 2009, but both programs will operate side by side and look almost the same.
• During 2009, we will integrate the two programs and consolidate mileage balances in a 1:1 ratio. We will consolidate elite-qualifying mileage balances and recognize Northwest MillionAirs. During early 2009, I anticipate that we will announce and launch full mileage pooling between customer accounts, that will allow you all to move miles back and forth between your NW and DL accounts.
• I’ve gotten many questions about recent program changes made by other airlines in the last few months, and I anticipate you’ll see very little change to the NW and DL programs prior to consolidation. After integrating the two programs, we may announce a new elite program later in 2009, however that is still up in there. We did however make a few recent announcements, which I know you all are aware of, including removal of the fuel surcharge on award tickets, elimination of the curbside check-in charge, we launched elite upgrade reciprocity, and made changes to baggage allowances. We have matched the other airlines on their first baggage charge, as we were the only airline out there without a first baggage charge, and reduced the second baggage charge. Medallions are still allowed two free checked bags up to 70 pounds per bag, however as you know, that was reduced down from three free checked bags. The number of Medallions that are impacted by this is minimal, since the vast majority of customers when flying out of town have less than two checked bags each.
• As much as I’d like to move to paperless, the PMUs will remain out there in 2009 and will unfortunately remain being paper. Given the technology hurdles that we have to overcome, we had to make a choice between completely eliminating them and waiting for technology on the NW platform to be able to imitate these, changing the PMUs completely in the next couple weeks to be ready to communicate for 2009 (which would have been impossible technology wise) or simply use them one more year. The decision was the latter, and thus on the DL side, you will continue to have the PMUs as they are today moving into 2009. I anticipate something different, a better upgrade and paperless as we move into 2010.
• The three-tiered award structure was launched in September, and in the first 30-days, the number of award seats sold is up compared to the 30 days prior, and the average price of an award ticket is down slightly. In fact, over 65% of customers who previously chose the last-seat “Choice” option are buying down to the lower mid-tier level. Thus, for those who believed it was our way of reducing the number of award seats or raising prices, the initial data does not suggest that. We’ll provide more facts around the new award structure over the next few months as we gather more data, however this is a win for both customers and the airline. People are moving their non-saver redemptions to less peak flights, which is saving them from having to pay previous “Choice” rates and driving less revenue displacement on our most-peak flights.
• I had a couple questions on this as well, Pay With Miles and PerkChoice will continue to be offered in the DL and NW programs, respectively, as we operate them side by side.
Those are the highlights of what is going on integration wise, and hopefully this provides some insight into timing and where we are going. By the way, I've reviewed the recent posts around "Choice Seats" and we are relooking at this program, and will make changes as necessary based on overall customer feedback. ’ll share more over the next few months as we continue to make progress.
Til next time,
Jeff
Over the last several weeks, I’ve been pretty quiet out in FlyerTalk, primarily because we’ve been very busy here working to consolidate our two airlines and our respective loyalty programs. Wanted to share with you some of the highlights of where we’ve come, a few facts that you might find interesting, and what we are currently working on:
• Organizationally, we will be consolidating the NW and DL loyalty teams into one organization, and will likely be accomplishing this throughout 2009. We intend to consolidate the two loyalty programs into one program, that we are fully committed will be “best-in-class,” and will align the organization along with the program integration needs.
• The program integration will occur prior to the end of 2009, unless we run into any major technology or contractual hurdles. At this point, we don’t believe we will have any major hurdles, and should have the programs integrated in 2009. With that said, we have two co-brand contracts at this point, between US Bank and American Express, and we are currently working through these contractual issues. For both of our co-brand card holders, the miles you are earning from either card are safe and you will have even more ways and routes to redeem with the combined network. Again, for all SkyMiles and WorldPerks members, your miles will be safe and your status will be secure.
• We also have very different technology platforms, and have selected the NW loyalty platform as our ultimate base. As a result of this choice and these ultimate contract resolutions, the exact timing of integration in 2009 and how program benefits roll-out is still up in the air.
• In terms of program benefits for 2009, the two elite programs and rewards programs are already today very similar. You can already earn and burn on either airline, and with the launch of elite reciprocity just three weeks ago, you can now be recognized as an elite on either airline and use your complimentary upgrade benefits when flying either NW or DL. The prioritization of customers is now integrated, and all Platinums will clear on NW and DL operated flights together, prioritized within tier by fare class. NW and DL customers are prioritized first, and then other airline customers who we have an alliance with, clear thereafter. We’ve seen many people comment on the belief that it will be hard to upgrade, and for most of you, it will not be a material or noticeable impact. This is true primarily because NW customers and DL customer travel patterns really don’t overlap that much. Where you will see the most impact, is in hub to hub flying – particularly MSPATL and DTWATL. In fact, we will likely be upgrading aircraft in these markets anyway, which should provide more seat availability.
• In the next 30 days, we will be announcing a few additional program changes that will better align our two programs even more closely. The intent is to have the two programs almost identical throughout 2009, and for customers to be indifferent as to which program they play in. Given complexity in technology however, there will still be a few differences during 2009, but both programs will operate side by side and look almost the same.
• During 2009, we will integrate the two programs and consolidate mileage balances in a 1:1 ratio. We will consolidate elite-qualifying mileage balances and recognize Northwest MillionAirs. During early 2009, I anticipate that we will announce and launch full mileage pooling between customer accounts, that will allow you all to move miles back and forth between your NW and DL accounts.
• I’ve gotten many questions about recent program changes made by other airlines in the last few months, and I anticipate you’ll see very little change to the NW and DL programs prior to consolidation. After integrating the two programs, we may announce a new elite program later in 2009, however that is still up in there. We did however make a few recent announcements, which I know you all are aware of, including removal of the fuel surcharge on award tickets, elimination of the curbside check-in charge, we launched elite upgrade reciprocity, and made changes to baggage allowances. We have matched the other airlines on their first baggage charge, as we were the only airline out there without a first baggage charge, and reduced the second baggage charge. Medallions are still allowed two free checked bags up to 70 pounds per bag, however as you know, that was reduced down from three free checked bags. The number of Medallions that are impacted by this is minimal, since the vast majority of customers when flying out of town have less than two checked bags each.
• As much as I’d like to move to paperless, the PMUs will remain out there in 2009 and will unfortunately remain being paper. Given the technology hurdles that we have to overcome, we had to make a choice between completely eliminating them and waiting for technology on the NW platform to be able to imitate these, changing the PMUs completely in the next couple weeks to be ready to communicate for 2009 (which would have been impossible technology wise) or simply use them one more year. The decision was the latter, and thus on the DL side, you will continue to have the PMUs as they are today moving into 2009. I anticipate something different, a better upgrade and paperless as we move into 2010.
• The three-tiered award structure was launched in September, and in the first 30-days, the number of award seats sold is up compared to the 30 days prior, and the average price of an award ticket is down slightly. In fact, over 65% of customers who previously chose the last-seat “Choice” option are buying down to the lower mid-tier level. Thus, for those who believed it was our way of reducing the number of award seats or raising prices, the initial data does not suggest that. We’ll provide more facts around the new award structure over the next few months as we gather more data, however this is a win for both customers and the airline. People are moving their non-saver redemptions to less peak flights, which is saving them from having to pay previous “Choice” rates and driving less revenue displacement on our most-peak flights.
• I had a couple questions on this as well, Pay With Miles and PerkChoice will continue to be offered in the DL and NW programs, respectively, as we operate them side by side.
Those are the highlights of what is going on integration wise, and hopefully this provides some insight into timing and where we are going. By the way, I've reviewed the recent posts around "Choice Seats" and we are relooking at this program, and will make changes as necessary based on overall customer feedback. ’ll share more over the next few months as we continue to make progress.
Til next time,
Jeff
Nov 13, 2008, 8:36 am
#2
FlyerTalk Evangelist
Join Date: Jun 2008
Location: Rural TN (but WAS native)
Programs: National Executive Elite, none of the others matter
Posts: 23,823
• In the next 30 days, we will be announcing a few additional program changes that will better align our two programs even more closely. The intent is to have the two programs almost identical throughout 2009, and for customers to be indifferent as to which program they play in. Given complexity in technology however, there will still be a few differences during 2009, but both programs will operate side by side and look almost the same.
Nov 13, 2008, 8:37 am
#3
Join Date: Dec 2005
Location: Hopefully on a plane...
Posts: 6,580
FTers,
• As much as I’d like to move to paperless, the PMUs will remain out there in 2009 and will unfortunately remain being paper. Given the technology hurdles that we have to overcome, we had to make a choice between completely eliminating them and waiting for technology on the NW platform to be able to imitate these, changing the PMUs completely in the next couple weeks to be ready to communicate for 2009 (which would have been impossible technology wise) or simply use them one more year. The decision was the latter, and thus on the DL side, you will continue to have the PMUs as they are today moving into 2009. I anticipate something different, a better upgrade and paperless as we move into 2010.
• As much as I’d like to move to paperless, the PMUs will remain out there in 2009 and will unfortunately remain being paper. Given the technology hurdles that we have to overcome, we had to make a choice between completely eliminating them and waiting for technology on the NW platform to be able to imitate these, changing the PMUs completely in the next couple weeks to be ready to communicate for 2009 (which would have been impossible technology wise) or simply use them one more year. The decision was the latter, and thus on the DL side, you will continue to have the PMUs as they are today moving into 2009. I anticipate something different, a better upgrade and paperless as we move into 2010.
Nov 13, 2008, 8:41 am
#4
Join Date: Mar 2004
Location: Orem, UT, USA
Programs: DL PM, HHonors Diamond, Hyatt Platinum, Marriott Gold, SPG Gold
Posts: 413
I'm surprised that there's not a stream of follow-ups here yet. Even though it's been a while since we heard from Jeff, I'm glad that he's withstood the heat that we as a collective group send his way and is still here every so often.
The one thing I would ask is that the Choice Seats program is looked at. I think it's ridiculous to start with, but at a bare minimum, I should still be able to choose the seat I want when I book rather than having to join a bum rush for the best seats on the aircraft at 24 hours out. It's virtual Southwest, and it's obnoxious. Other than that, it seems like there's not much here. I hope to see good things come out of the WP/SM merger and that you'll keep us in mind instead of allowing the folks in accounting to dictate the lowest common denominator between the two programs.
The one thing I would ask is that the Choice Seats program is looked at. I think it's ridiculous to start with, but at a bare minimum, I should still be able to choose the seat I want when I book rather than having to join a bum rush for the best seats on the aircraft at 24 hours out. It's virtual Southwest, and it's obnoxious. Other than that, it seems like there's not much here. I hope to see good things come out of the WP/SM merger and that you'll keep us in mind instead of allowing the folks in accounting to dictate the lowest common denominator between the two programs.
Nov 13, 2008, 8:44 am
#5
FlyerTalk Evangelist
Join Date: Mar 2004
Location: Under an ORD approach path
Programs: DL PM, MM. Coffee isn't a drug, it's a vitamin.
Posts: 12,935
Dump the three tier and go back to the old way.
Nov 13, 2008, 8:47 am
#6
Join Date: Jun 2004
Location: Chicago, IL
Programs: UA Plat, DL PM, HH Diamond, SPG Gold
Posts: 374
I find it interesting that no mention was made of how poorly the online award calendar works and is basically useless. Sometimes I think Jeff has selective reading skills when browsing FlyerTalk.
Everything else mentioned is just blah, blah, blah. Nothing was said we could not have figured out on our own.
Everything else mentioned is just blah, blah, blah. Nothing was said we could not have figured out on our own.
Nov 13, 2008, 8:49 am
#7
Join Date: Oct 2003
Location: KOA
Programs: DL Gold/MM, HH Diamond, Hyatt Explorist, IHG Platinum, Marriott Lifetime Gold
Posts: 2,280
I find this interesting and may take advantage of it, as I have seen better award availability on NW.
Nov 13, 2008, 8:52 am
#8
FlyerTalk Evangelist
Join Date: Jun 2008
Location: Rural TN (but WAS native)
Programs: National Executive Elite, none of the others matter
Posts: 23,823
Nov 13, 2008, 8:55 am
#9
Join Date: Jan 2003
Location: BNA
Programs: DL PM/MM, Hilton Diamond, *wood plat, UA 1kc
Posts: 921
Nov 13, 2008, 8:56 am
#10
Join Date: Dec 2004
Location: LHR / BHX / MAN / ATL
Programs: DL DM 2MM - IHG Diamond
Posts: 4,053
+1
Nov 13, 2008, 9:17 am
#11
FlyerTalk Evangelist
Join Date: Oct 2005
Location: Ponte Vedra Beach, FL
Programs: DL PM, HH Diamond, Fairmont Prem, SPG Gold, Priority Club Plat/IC Amb, AmEx Plat
Posts: 10,839
The one thing I would ask is that the Choice Seats program is looked at. I think it's ridiculous to start with, but at a bare minimum, I should still be able to choose the seat I want when I book rather than having to join a bum rush for the best seats on the aircraft at 24 hours out. It's virtual Southwest, and it's obnoxious.
Nov 13, 2008, 9:21 am
#12
Join Date: Sep 2003
Location: VPS
Programs: DL DM/2MM, Etihad Gold, HHonors Diamond, SPG Gold
Posts: 4,787
Thanks for the update Jeff. I do have some questions surrounding the info posted above:
1) When can PMUs be used to upgrade NW flights in the same way they are used to upgrade Delta flights?
2) Will the EP program be retained in 2009? Are NW Plats to be considered for EP (or something equivalent) in 2009?
3) When Medallion members travel with family on the same itinerary, are the family members also exempted from the new bag fees?
4) When will premium fares on NW be eligible for the premium fare bonus that is currently given for Delta flights? For example, when flying a DL coded, NW operated flight in A class, the 150 percent mileage credit in not given.
Comments:
1) PLEASE relook the premium seat issue. Medallions should be able to select these seats at booking without charge.
2) PLEASE do not relook the minimum mileage as the other majors have done. Delta does not need to join the race to the bottom.
1) When can PMUs be used to upgrade NW flights in the same way they are used to upgrade Delta flights?
2) Will the EP program be retained in 2009? Are NW Plats to be considered for EP (or something equivalent) in 2009?
3) When Medallion members travel with family on the same itinerary, are the family members also exempted from the new bag fees?
4) When will premium fares on NW be eligible for the premium fare bonus that is currently given for Delta flights? For example, when flying a DL coded, NW operated flight in A class, the 150 percent mileage credit in not given.
Comments:
1) PLEASE relook the premium seat issue. Medallions should be able to select these seats at booking without charge.
2) PLEASE do not relook the minimum mileage as the other majors have done. Delta does not need to join the race to the bottom.
Nov 13, 2008, 9:23 am
#13
Join Date: Dec 2003
Location: RDU, Delta GM/1MM, Hilton Diamond (for now), Bonvoy Titanium
Posts: 3,443
+1 - this is the only reason I've ever checked 3 bags - when my traveling companion wasn't on my PNR and their bag was over 50. I just tossed it in with my bags. (Although I only ever check bags when on vacation)
Nov 13, 2008, 9:30 am
#14
Join Date: Jun 2005
Location: AUS
Programs: AA Exec Platinum/MM, DL Gold/MM, Hilton Diamond, Accor Platinum, Hertz Presidents Circle
Posts: 6,977
The one thing I would ask is that the Choice Seats program is looked at. I think it's ridiculous to start with, but at a bare minimum, I should still be able to choose the seat I want when I book rather than having to join a bum rush for the best seats on the aircraft at 24 hours out. It's virtual Southwest, and it's obnoxious.
It's a useful feature if I book late and all the better seats are already taken. At least I then have a chance at something decent (if I'm not already upgraded).
Nov 13, 2008, 9:31 am
#15
Suspended
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
Any sort of answer would be nice as I plan my travel for 2009. Even if the answer is that we won't be able to use them until 2010, I just want to know.