Hope everyone is having a great new year, and within our SkyMiles team, we have been very busy. I’ve been reading some postings over the last few weeks and from today, and wanted to share some background and potential thoughts around a few of these …

Issue 1: A posting around whether “RealDLInsider” would ever come back online based on some of the negative flyertalk feedback around the SkyChoice change.

Answer: I’ll definitely come back, and just because people have an opinion about a specific program, promotion or program change that we’ve made or are considering to make (whether positive or negative), it will not deter me from listening, reading and occasionally chiming in. In the end, that’s the point of this website.

Issue 2: In response to my last posting around suggested changes to our loyalty program as the result of any merger scenario.

Answer: Thank You! The feedback was overwhelming, difficult to absorb all in one read, but was and will be valuable. Speculation continues to run wild in the industry about various merger scenarios, and in due time, things will become public. However, in any type of merger where Delta and the SkyMiles program survive, I assure you that this airline would do everything possible to retain a program that would ensure we retain every existing customer and potentially win other airline customers over. The loyalty program generates over $1.1B annually in mileage sales at Delta alone, and drives more than 60% of total flown revenue. The numbers alone and the importance to our customers will ensure it remains a viable and competitive player. Our target is best in the industry.

Issue 3: Information was released in an email today to millions of customers, and was also issued in a posting initiated by “DLres2006,” regarding a new Pay with Miles program and a new three-tiered award structure. Wanted to clarify a couple issues and will break this into a few areas:

DLres2006 – not sure where this flyertalker is getting their information, but unfortunately, it’s not fully accurate. They mention things around minimum fares and how the program will work – and the information they have is incorrect. Just because the username assumes they are an insider, I’m not convinced they are “in the know.”

“Pay with Miles” program – as the email mentions, more information will be coming in the next two weeks, but I’ll try to provide you all an overview. The program will apply to Gold and Platinum Delta SkyMiles cardholders (which is a very sizable portion of our active database), and provides them yet another option to use their frequent flyer miles. The miles that can be used are not just those earned on the credit card, but they can use all the miles in their bank (regardless of where they were previously earned). The member can use 10,000 miles for $100 off a Delta ticket, 25,000 miles for $250 off a ticket, and so forth. For the customer who likes to use 90,000 miles toward a Business Class ticket to Europe or 250,000 miles for BE SkyChoice, they wouldn’t choose this burn option to redeem (as several of you are aware and have mentioned). However, the vast majority of customers and many millions of them in our program may not be like some of you. Instead, they have less than 25,000 miles in their accounts or use their miles toward domestic award travel only (with many of them wanting award seats in domestic markets with relatively low fares). Thus, for customers who can’t find award seats in many markets at the 25,000 mile SkySaver level, but can find fares in the $250 range, they will basically receive less restrictive if not unlimited access to a 25K award seat. Although it may seem difficult to believe, you would be shocked to know how many seats we sell in the domestic U.S. for less than $250. These customers now have access to a 25,000 mile “Pay with Miles” award instead. Again, more information will be on the way around the entire program, but again, for the customer who tries to use their currency to get 4 or 5 cents worth per mile by flying Saver to Hawaii, BE Saver to Europe or SkyChoice to Vail, they’ll see this as another redemption option. However, for potentially many millions of customers, we believe it will become a used option.

Three Tiered Award Structure – more information will be released on this later this quarter, but as I’ve hinted to in previous statements, the SkyChoice change that was made back in December was only interim and three-tiers was always the plan. This new award structure that has been in the works for 12 months, will give customers more choice, greater access to seats at more reasonable levels, and by retaining the “combinability” option of award levels, will create a program that matches award levels to availability.

All in all, I’ve mentioned before that in 2008 our plan was to provide customers more options to use their frequent flyer miles and greater transparency in finding award seats. The Pay with Miles program set to launch soon, will provide a large population of customers more choices and options in using their miles, the three tiered-award structure will provide everyone multiple ways and levels to use their miles, and the online award calendar expansion will give them immediate access to all of this at the click of a mouse. By the end of this year, our best customers will have the ability to redeem a Saver, Choice and/or a third tier award, an award at our online auction, merchandise or an experience at Medallion Marketplace, or in our new Pay with Miles program. The level of interest will vary for each of these depending on how a customer wants to use their miles, but choice and options is what we believe in. Also, having all of this available online makes it simple, easy to find and more user-friendly.

Enjoy the next few weeks and keep posting. If you keep writing, I’ll keep reading.

Jeff