A Senator sues LH because of increased "miles prices"
#46
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008
Accepting the terms and conditions attached to any relationship doesn't secure an absence of conflict. Marriage springs to mind .
Well, yes, but easier said than done. Lufthansa must be testing the limits as it gradually reduces M&M members' benefits across all levels, but inertia, accumulated miles and the alliance-wide benefits make the programme difficult to ditch.
BA is going through a radical re-structuring of its programme, and although some aspects of the change were not so well handled, the net result is a patchy one of winners and losers - but shaped by a clear(ish) strategy not focussed on the euphemistic accounting imperative put foward by Lufthansa's apologists.
This accounting imperative has been handled in an unimaginative way by Lufthansa. Simply putting up redemption rates to use up the overhanging mileage bank is pretty brutal. Playing around with demand curves might lead them to try REDUCING redemption rates and introducing innovative structures: perhaps preferring to offload capacity into the programme rather than having half-price business-class sales.
BA is going through a radical re-structuring of its programme, and although some aspects of the change were not so well handled, the net result is a patchy one of winners and losers - but shaped by a clear(ish) strategy not focussed on the euphemistic accounting imperative put foward by Lufthansa's apologists.
This accounting imperative has been handled in an unimaginative way by Lufthansa. Simply putting up redemption rates to use up the overhanging mileage bank is pretty brutal. Playing around with demand curves might lead them to try REDUCING redemption rates and introducing innovative structures: perhaps preferring to offload capacity into the programme rather than having half-price business-class sales.
#47
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,186
LH now has a reputation that is not very good. It changes the rules without notice and has left many of us high and dry. It changed the K fare in July and has now burned many of us who had bought that fare class before the change who cannot now credit it for miles to any airline program. Nor can UA elites use their SWUs on that fare, even though our certs say it's an eligible fare.
Last week, LH demanded Aeroplan charge the fuel surcharge on all its flights, raising award tickets by $200-$500 depending upon how much LH space was on the itinerary. And there was only a few days notice!
I wish this fellow all the best in his efforts. LH has to be taught it cannot change things arbitrarily without negative implications! I hope the German and EU courts recognize that FF programs are one sided contracts and the infamous "without notice" clauses illegal!!!!!! There has been a shift in recognition of how one-sided such contracts are, particularly in the US where credit card laws have radically shifted the balance to the consumer (though not as far as should be).
Last week, LH demanded Aeroplan charge the fuel surcharge on all its flights, raising award tickets by $200-$500 depending upon how much LH space was on the itinerary. And there was only a few days notice!
I wish this fellow all the best in his efforts. LH has to be taught it cannot change things arbitrarily without negative implications! I hope the German and EU courts recognize that FF programs are one sided contracts and the infamous "without notice" clauses illegal!!!!!! There has been a shift in recognition of how one-sided such contracts are, particularly in the US where credit card laws have radically shifted the balance to the consumer (though not as far as should be).
#48
Join Date: Nov 2005
Location: RTW
Programs: MR Ag, LH FTL
Posts: 947
Citation needed that it was LH request not AirCanada getting more greedy. I doubt they pass YQ to LH.
#49
Join Date: Nov 2007
Location: LEJ BRU
Posts: 1,162
AFAIK, K fares bought before the A++ mapping took place are changed to other corresponing midflex booking classes.
#51
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,186
Perhaps when LH made the change itself in July, but notice was not sent to other STAR carriers for several weeks or months and thus K fares purchased in this period remain unchanged and don't earn mileage in programs like Aeroplan, Mileage Plus, etc.
#52
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,186
You're parroting the cynical line from ignorant commentators on the AC forum who suspect it was AC that made the change and pockets the money. It was LH requesting under the marketing pooling agreement it has with AC that the same practice be applied to its award tickets that are applied to AC's. If AC is pocketing the money, then that is theft and commercial fraud. Are you suggesting AC is committing fraud?
#53
Join Date: Nov 2005
Location: RTW
Programs: MR Ag, LH FTL
Posts: 947
You're parroting the cynical line from ignorant commentators on the AC forum who suspect it was AC that made the change and pockets the money. It was LH requesting under the marketing pooling agreement it has with AC that the same practice be applied to its award tickets that are applied to AC's. If AC is pocketing the money, then that is theft and commercial fraud. Are you suggesting AC is committing fraud?
#54
FlyerTalk Evangelist
Join Date: Feb 2000
Location: London, UK and Southern France
Posts: 18,369
I stand to be corrected if things have changed but my understanding was that YQs were kept by the ticketing carrier, however counter-intuitive and bizarre this might seem. Why would sticking to standard IATA practices and agreements be theft and commercial fraud in this case?
#55
Join Date: Jul 2011
Location: SFO
Programs: M&M Sen
Posts: 55
#56
Join Date: Nov 2007
Location: LEJ BRU
Posts: 1,162
#57
Join Date: Nov 2000
Posts: 1,941
In Germany a LH Sneator is suing LH because of the increased miles prices at the end of 2010. He says that his miles account is devaluated by up to 40%, i.e. you now need 210.000 miles to go to Asia in first instead of 180.000 as it was before.
His main argument is that LH informed the M&M members only 4 weeks before the change took place and he did obviously not have enough time to spend the miles in that period.
The official hearing starts at Jan. 27 2012.
Let's see what happens, will be interesting for most of us
Source (in German):
http://www.ftd.de/unternehmen/handel.../60133334.html
His main argument is that LH informed the M&M members only 4 weeks before the change took place and he did obviously not have enough time to spend the miles in that period.
The official hearing starts at Jan. 27 2012.
Let's see what happens, will be interesting for most of us
Source (in German):
http://www.ftd.de/unternehmen/handel.../60133334.html
#58
FlyerTalk Evangelist
Join Date: Jun 2005
Location: Point Place, Wisconsin
Programs: LH HON, BA Gold, EK Gold
Posts: 14,505
Interestingly enough LH offered 45.000 miles compensation before the case went to court.
In the first hearing the judge offered to consider a 90.000 miles out of court settlement.
This was of course refused by the plaintiff.
http://www.derwesten.de/staedte/esse...id6307492.html
Last edited by Rambuster; Feb 6, 2012 at 3:47 am Reason: newspaper link added
#59
Join Date: Aug 2006
Location: MUC (home), DUS (office), XXX (customer)
Programs: LH, AB, SPG, CC, Sixt, EC
Posts: 6,334
This will take months if not years until there is a legally binding final verdict.
Interestingly enough LH offered 45.000 miles compensation before the case went to court.
In the first hearing the judge offered to consider a 90.000 miles out of court settlement.
This was of course refused by the plaintiff.
http://www.derwesten.de/staedte/esse...id6307492.html
Interestingly enough LH offered 45.000 miles compensation before the case went to court.
In the first hearing the judge offered to consider a 90.000 miles out of court settlement.
This was of course refused by the plaintiff.
http://www.derwesten.de/staedte/esse...id6307492.html
#60
Join Date: Nov 2000
Posts: 1,941
This will take months if not years until there is a legally binding final verdict.
Interestingly enough LH offered 45.000 miles compensation before the case went to court.
In the first hearing the judge offered to consider a 90.000 miles out of court settlement.
This was of course refused by the plaintiff.
http://www.derwesten.de/staedte/esse...id6307492.html
Interestingly enough LH offered 45.000 miles compensation before the case went to court.
In the first hearing the judge offered to consider a 90.000 miles out of court settlement.
This was of course refused by the plaintiff.
http://www.derwesten.de/staedte/esse...id6307492.html
When LH devalued the miles, I had several million bonus miles in my account. As compensation, I asked for several hundred thousand miles of compensation.
LH politely declined. If this guy wins, I am next. I like LH, but if they try and steal from me I will pay back.