Delta unlikely to cut SkyMiles....if files bankruptcy
Jun 28, 2004, 1:31 pm
#1
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Delta unlikely to cut SkyMiles....if files bankruptcy
http://msnbc.msn.com/id/5297869/
The SkyMiles frequent-flier program by Delta Air Lines Inc. is probably the last program executives would tinker with if the struggling carrier ends up in bankruptcy.
Frequent-flier and marketing experts say the couple hundred million dollars in annual cost savings Delta would achieve from SkyMiles cuts would not justify the irate backlash the airline would likely get from its 35 million SkyMiles members.
"If Delta made any cuts to SkyMiles, there is no doubt that other carriers, including AirTran, would love to take that negative feedback and shove it in Delta's face," said Randy Petersen, editor and publisher of Inside Flyer, which tracks frequent-flier programs of all major commercial airlines. "Once you've earned those points for your loyalty, it would be unspeakable for someone to take them away." .........
The SkyMiles frequent-flier program by Delta Air Lines Inc. is probably the last program executives would tinker with if the struggling carrier ends up in bankruptcy.
Frequent-flier and marketing experts say the couple hundred million dollars in annual cost savings Delta would achieve from SkyMiles cuts would not justify the irate backlash the airline would likely get from its 35 million SkyMiles members.
"If Delta made any cuts to SkyMiles, there is no doubt that other carriers, including AirTran, would love to take that negative feedback and shove it in Delta's face," said Randy Petersen, editor and publisher of Inside Flyer, which tracks frequent-flier programs of all major commercial airlines. "Once you've earned those points for your loyalty, it would be unspeakable for someone to take them away." .........
Jun 28, 2004, 2:07 pm
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By eliminating SkyMiles, Delta would not only eliminate the costs (eg: free tickets, upgrades) but also the revenue it brings in. This includes both indirect revenue (people choosing to fly Delta to get miles) but direct revenue (partners buying SkyMiles to give to customers).
I have often thought that if Delta were to cease operations it would be an extremely wise move by another airline to pay Delta for the list of SkyMiles members, including their status and SkyMiles balance, and then to give those passengers equal standing (and equal miles).
This company would be seen as a savior by SkyMiles members and immediately get an extremely loyal group of frequent flyers.
I have often thought that if Delta were to cease operations it would be an extremely wise move by another airline to pay Delta for the list of SkyMiles members, including their status and SkyMiles balance, and then to give those passengers equal standing (and equal miles).
This company would be seen as a savior by SkyMiles members and immediately get an extremely loyal group of frequent flyers.
Jun 28, 2004, 2:15 pm
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Originally Posted by MSNBC.COM
To combat deeply discounted tickets, Delta began taking into account the price customers paid for plane tickets when awarding SkyMiles points to its Medallion members.
Originally Posted by MSNBC.COM
Those miles can be "redeemed" for free flights or catalog items, though there often are blackout dates around holidays and spring break...
Jun 28, 2004, 4:12 pm
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Are further cuts even possible??
As I like to explain negative numbers: If there are 7 people on the bus and 9 people get off, 2 people have get back on the bus to make it empty.
As I like to explain negative numbers: If there are 7 people on the bus and 9 people get off, 2 people have get back on the bus to make it empty.
Jun 28, 2004, 4:39 pm
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Originally Posted by Spiff
Are further cuts even possible??
As I like to explain negative numbers: If there are 7 people on the bus and 9 people get off, 2 people have get back on the bus to make it empty.
As I like to explain negative numbers: If there are 7 people on the bus and 9 people get off, 2 people have get back on the bus to make it empty.
^ ^
Jun 28, 2004, 5:02 pm
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Originally Posted by Dovster
I have often thought that if Delta were to cease operations it would be an extremely wise move by another airline to pay Delta for the list of SkyMiles members, including their status and SkyMiles balance, and then to give those passengers equal standing (and equal miles).
This company would be seen as a savior by SkyMiles members and immediately get an extremely loyal group of frequent flyers.
This company would be seen as a savior by SkyMiles members and immediately get an extremely loyal group of frequent flyers.
Jun 28, 2004, 5:29 pm
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Originally Posted by Dovster
This company would be seen as a savior by SkyMiles members and immediately get an extremely loyal group of frequent flyers.
Or at least this is the scenario that a couple posters in this forum would like to believe.
Jun 28, 2004, 5:34 pm
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Originally Posted by Cholula
The honeymoon would last a few months and then, greedy f****er's that we are, we'd soon be bashing the new airline as well.
Or at least this is the scenario that a couple posters in this forum would like to believe.
Or at least this is the scenario that a couple posters in this forum would like to believe.
Jun 28, 2004, 5:38 pm
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I'm pretty worried about our infamous $3600 credit to be used by Nov. 28th - any ideas on whether that would be protected too if B/R occurs before then?
Jun 28, 2004, 5:38 pm
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Originally Posted by jimrpa
Cholula, could you share the mystery of what "f****er" actually means?
Jun 28, 2004, 5:45 pm
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Originally Posted by brendamc
I'm pretty worried about our infamous $3600 credit to be used by Nov. 28th - any ideas on whether that would be protected too if B/R occurs before then?
I don't think the situation is that dire - as long as DL doesn't go Chapter 7, then they will honor your travel credit.
Jun 28, 2004, 6:28 pm
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Originally Posted by mikey1003
The SkyMiles frequent-flier program by Delta Air Lines Inc. is probably the last program executives would tinker with if the struggling carrier ends up in bankruptcy.
Jun 28, 2004, 6:41 pm
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Originally Posted by Cholula
The honeymoon would last a few months and then, greedy f****er's that we are, we'd soon be bashing the new airline as well.
Or at least this is the scenario that a couple posters in this forum would like to believe.
Or at least this is the scenario that a couple posters in this forum would like to believe.
As for the thread topic...I dont mindlessly hoard my miles like some, so I have very little to lose!
Jun 28, 2004, 6:46 pm
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Originally Posted by Pointfreak!
As for the thread topic...I dont mindlessly hoard my miles like some, so I have very little to lose!
Jun 28, 2004, 6:46 pm
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Originally Posted by HeHateY
Isn't it in part the previous tinkering with SkyMiles that has led DAL to its current state?
I've always thought that if one of the majors had REALLY improved their FF program after 9/11 so it was head and shoulders over the rest, that they could have capitalized on the poor state of affairs. And snarfed a ton of FF's to their program.
But no. It was monkey see, monkey do with the majors trying to see who could cut bennies and programs faster than the other guy. An astute marketer would have seen the trials and tribulations post 9/11 as an opportunity and not a problem. And would have used everybody else's panic to bolster their FF roster.
No one clearly stepped up to the plate with a superior FF program so today you have the majors in a death spiral and the LCC's growing. The majors, who always had an advantage over the LCC's with their superior service, comfort and FF programs, lost that advantage. So today everybody is now competing on price.
And guess who the big losers are??
My two cents worth...other's opinions will certainly vary.