I am a freshman at Bryn Mawr College and had an assignment to write a paper on what in today's world drives me crazy.
Here is what I wrote:
USAirways Alienated Its Best Customers While in Bankruptcy
Since 9/11/01, financially struggling airlines in the US have had many difficulties. Due to the lengthy closure of DCA (Reagan National Airport in Washington, D.C.) and the Northeast route structure, none was effected as much as USAirways. Part of what has kept USAirways in business includes its entry into bankruptcy reorganization and the loyalty of its best customers. Know as Frequent Flyers, we have Preferred membership in the Frequent Flyer programs begun in 1982 by American Airlines and now copied by all competitors. On August 15, USAirways posted the new guidelines for 2003 Preferred Membership, which benefits includes upgrades to First Class, when available, no black out days on reward tickets, special check in and security lines, and dedicated phone numbers for customer service. Preferred Membership in USAirways Dividend Miles Program in the past could be earned by flying as little as 25,000 miles a year on any type of fare; however, newly posted on the USAirways website in a very small font was “Effective January 1, 2003, Dividend Miles members will not receive miles or segment credit toward Preferred status for tickets purchased in H, K, V, Q, and L nonrefundable fare classes” (www.usairways.com). Translated into non airline English, this means that all of the “cheap” fares like those seen advertised in the newspaper or online would no longer count towards Preferred membership. In addition, there would no longer be free standby for earlier flights on these tickets. This sent a chill up all preferred customers’ spines, myself included with the realization that I fly the same amount but would lose all the benefits.
Preferred members are airlines best customers. We fly at least 25,000 miles a year and as many we bear sitting. Why would a company in bankruptcy alienate its best customers? According to Ben Baldanza, USAirways Senior Vice President of Market and Planning “(T)his carrier (USAirways) is trying to reward coach-class passengers for the amount they spend, not how much they fly. He says the change will not turn away as many loyal customers as others think” (USA Today). From this, the term “cockroach” was self assigned by Preferred customers, who do not buy high priced refundable fares since it appears that Baldanza wants to stomp us out.
Ben Baldanza was wrong. USAirways flyers are some of the most loyal anywhere. We endure unrealistic schedules, having to fly in, sit on the ground, and wait to fly out of PHL (Philadelphia) on a regular basis because of the hub and spoke system, lack a west coast presence (a very bad move made circa ten years ago with the purchase and obliteration of PSA (Pacific Southwest Airways)), and fly turboprops where other airlines use regional jets.
As a member of the USAirways Frequent Flyer Program for the last sixteen years, I felt disowned. I have never flown on a high fare refundable ticket but can remember USAirways prior to mergers when it was Alleghany and Piedmont. My family and I stayed loyal to USAirways even though their schedules out of Jacksonville were not as convenient as other airlines. After September 11, the only places we could fly non-stop were Tampa, Tallahassee, Charlotte, Washington D.C. (DCA) and Philadelphia; having eliminated Miami, Orlando, West Palm Beach, Gainesville, Pittsburgh, Baltimore, and New York. The direct flights to the places we wanted to go were eliminated and we found ourselves spending more and more time waiting in the Charlotte Airport.
Although, USAirways did retract the policy of not allowing Preferred Miles to be accrued on non-refundable fares, apologies were not given to those that it had alienated. It was assumed by management that the affected customers would stay and forget what happened. Then last week, USAirways notified its most loyal customers through a third party that the generous mileage bonuses that customers had been given to ensure loyalty through bankruptcy would immediately stop, since the airline described passengers use of the rules as “fraud”. Also, customers Dividend Miles accounts would be audited and some miles might be removed at USAirways discretion.
The status quo, USAirways (mis)management, thinks that reducing benefits and services to its customers is good business, but it is not. In my opinion, USAirways needs to begin apologizing to its best customers and then apologize some more. They need to look at old flight loads and profitability, see where direct flights were almost always full, and reinstate those flights. Also, communication must increase with Frequent Flyers. USAirways should not go through third parties to state their position and do more than send out an e-mail several days after a policy has been changed. It must recognize that there are ways to test ideas and policy to a core group of Frequent Fliers before introducing them to the general public. Keep us loyal and we will keep you flying. However, unless USAirways begins this process now, it will continue to lose its customers and will face Chapter 7 liquidation instead of successfully emerging from Chapter 11 bankruptcy.
[This message has been edited by abbeachbear (edited 10-21-2002).]
