Edited from THE WALL STREET JOURNAL...
December 6, 2002

Industry experts are split over whether United's frequent-flier program, which has the second-largest number of members world-wide, would get an overhaul. Some note that an airline in bankruptcy reorganization tends to improve its program as it worries about losing loyal passengers. United could offer double miles for select routes, give extra credits toward elite status or extend elite status into the following year, says David Stempler, president of the Air Travelers Association, an advocacy group in Washington, D.C. But some fear that United, to cut costs, would make it more difficult for travelers to redeem miles for tickets.

Either way, an immediate plus for members of United's program is that the airline has an array of options to cash in miles. United has partnerships with behemoth Delta Air Lines and US Airways, and is also part of the Star Alliance network of more than 14 carriers, most overseas.

A longer-term impact of a United bankruptcy could include reduced flight schedules. Mr. Baker says he expects United to shrink capacity 10% to 12% next year. The cuts likely will come first in small to midsize markets rather than big business centers. United's main hubs, Chicago and Denver, should remain largely intact, Mr. Baker says, while Dulles, Va., United's weakest hub, could be a candidate for downsizing.