FlyerTalk Forums - View Single Post - United CFO Rainey Implies Certain Elites were "Over Entitled".
Old May 21, 2012, 8:56 am
  #608  
dgcpaphd
 
Join Date: Apr 2008
Posts: 2,358
Originally Posted by EWR764

"Essentially" does not make it an enforceable contract, and such a customer in your hypothetical would probably not find much success pursuing a claim against an airline for a breach of contract.
Don't count on it.

Originally Posted by EWR764

As noted, there is not one case that I am aware of in which a court has found a legal obligation exists for a carrier to deliver elite benefits as advertised.

snip snip
Not yet.

This is the first time that a major air carrier severely slashed frequent flier benefits for most of its members.

Yes, I agree that the airlines have a right to change their program. However, in the case of UA, there were specific "lifetime" benefits that UA did not have a right to rescind. In those cases, a contract was created after members agreed to purchase services from UA in anticipation of the advertised "lifetime" benefits.

This is a particular area of frequent flier change that has not yet been explored in the courts.


Originally Posted by EWR764

The absence of an entitlement is not even ambiguous, it is crystal-clear.
Crystal clear to whom? Certainly not to many out here.

It is not only the "lifetime" benefits that cannot be breached by an airline.

In a hypothetical case an air carrier suddenly decides to no longer offer a bag fee waiver to certain members. Suppose those same members possess the UA/Chase Mileage Explorer credit card that has an annual fee and includes a bag fee waiver.

Do you really believe that Chase and UA are not obligated for the contract that was created when the passenger acquired the UA/Chase Explorer credit card?

Do you really believe that the customer would not have a claim against UA and Chase in the above example?

Yes, elites do have contracts in certain cases. I could cite more examples but there is no need. Clearly, in many cases, a contract with UA was created when customers accepted specific offers.

Consequently, in light of Mr. Rainey's speach to BofA personnel, UA should, immediately, rein in Mr Rainey from future speaking engagements. Rainey's
speech created additional ill will to the little remaining reputation of the merged UA.
-
dgcpaphd is offline