Looks like my last post around SkyChoice got a number of replies and was a healthy debate. In the spirit of moving on however, I’ve heard all of you loud and clear, and will commit to continue to monitor the situation, award availability and will make adjustments as necessary. Also appreciate the feedback and "grades" around my performance this year. As we move into 2008 however, I wanted to make a couple comments that I think are important to our loyalty program, and ask for your candid thoughts around one fairly high-profile issue.

Greater utility of mileage currency and improved transparency in where award seats are, and when they are allocated, is important for 2008 ….

Specifically, during 2008, I believe it is fundamentally important that airline loyalty programs and even the rewards programs of major credit cards continue to offer greater choice and utility in the “use” of frequent flyer miles. As the number of miles being given away and specifically sold continues to increase at very strong rates, loyalty programs in general must provide greater utility in the currency. This is a strong belief of mine, and one that Delta will commit to during 2008.

In addition to greater mileage utility, it’s even more important that we provide greater transparency into when and where award seats are available. Over the last several years, many airlines have added multiple partners which provide additional access to award seats, but calls to our reservations staff and technology (search tools) to find these award seats are inadequate and result in very lengthy talk times. One of our goals is to provide greater transparency and awareness of where award seats are and provide to each customer not just transparency, but the ability to pick and choose when they want to fly and at various mileage rates. This is yet one more thing Delta will commit to during 2008.

In Summary: In 2008, you will see greater mileage utility at Delta for all customers, more choices and more transparency in finding hard-earned award seats

Something to Ponder: Consolidation is all over the media, on the minds of airline investors, and in turn, discussions are likely being had with various airlines. Just to be clear, I’m not aware of discussions nor am I a part of any that may or may not be happening. However, as I think through what could happen in 2008, I wonder how two airlines might design any type of consolidated loyalty program. Specifically, with rumors of United and Delta, or scenarios that could put Northwest and Delta, or Continental and Delta together, what might be the good and bad that you keep in a consolidated program. For example, in a world of United/Delta, do you charge or not charge for upgrades? It’s easy to say that you would not want to from a customer perspective, but what about the number of elites and the ability to additional revenue off of discounted fares? Do you have three tiers (one at 75K or one at 100K), or do you have four tiers? Or better yet, do you have a tier at 150K, since a larger airline with a bigger network could make it easier to earn miles. What co-brand card offering is the best? Would you prefer to have two co-brand card options – an AMEX and a VISA/MC option? In a Delta-Northwest or Delta-Continental program, with the loyalty programs already fairly similar, do you keep them the same or do you adjust them? In what ways? Is UA, DL, NW and CO currency equivalent and would you simply just consolidate them into a 1:1 point transfer?

Again – not something that we’ll for sure have to deal with in 2008, but in the event we do, initial feedback would be great. Sorry so open ended, but just a few things I ponder while out on holiday.

Til next year, I hope you all have a great holiday and New Year’s eve and day! Since my Fighting Irish aren’t playing, bowl games just aren’t all that exciting this year. Sorry you LSU and OSU fans!

Jeff