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why don't airlines stop their mileage programs?

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why don't airlines stop their mileage programs?

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Old Jul 12, 2008 | 9:37 pm
  #76  
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Originally Posted by magiciansampras
Stop giving out miles altogether.

Some will say that they need miles to keep loyalty. I call BS on that one. Most flyers fly on 1) price and 2) convenience. Very few folks in the scheme of things fly based on miles.

So let's just get on with it. All airlines should get rid of their miles liabilities and stop this gradual bleeding.
In today's world, I don't quite understand what FF programs have to do with flyer loyalty. I don't earn any miles by flying (or less than 1% of my total mileage accrual per year)... I only fly to redeem miles - and therefore, 99% of the time I never pay airfare to fly (only taxes and fees) - except in remote areas where I cannot use any miles (mostly on internal flights in small countries like WITHIN the Cook Islands or Venezuela or Iceland or countries like that).

I make around 2-300K miles per year on 4 airlines mostly by using a combo of credit cards and bank accounts/ debit cards. For those like me, FF Programs have almost nothing to do with buying a paid ticket on their airline, but more so with cross-branding with the hundreds of thousands of other product partners.

Sure, I have no status with any program and sure, I just don't care. I never fly for business and the only thing that matters to me is taking as many flights as possible with my miles - not whether I get upgraded or such... therefore I will probably never buy a business or first mileage ticket because why would I spend 100,000 miles to go to Europe in Business/First just one time and blow my miles when for 100,000 miles I could go to Europe in Economy two times... that's how my tiny reptilian brain works... and this disregard of "status" is another disincentive for me to earn miles by flying.

I guess one can still consider FF programs loyalty programs in some way - because the promise of miles gets me to use the same credit cards and deposit money in the same bank year upon year. Eliminate the FF programs, and what do you think will happen to the credit card companies, car rental companies, banks, florists, restaurants etc. etc. which nowadays attract business solely because they give miles in return? Because the airline is not paying for the miles, the partners are. Ultimately, I end up being a "frequent flyer" when I redeem miles 5 times a year on one airline, but rarely a "fare paying" flyer.

Last edited by gq_dq; Jul 12, 2008 at 9:51 pm
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Old Jul 17, 2008 | 12:15 pm
  #77  
 
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up here in Canada safeway's give airmiles even if you don't have a credit card.
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Old Jul 17, 2008 | 12:30 pm
  #78  
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Originally Posted by magiciansampras
I think the people that fly based on FF program are in the minority.
It's not necessarily the miles (although I like and use them) for me; it's the elite perks that keep me flying DL. Loyalty works both ways and as an example, on a screwed up night in ATL, I walked up to the last flight out to FLL that had one seat open and 8 standbys already, and I got the seat due to my status.

The miles are just how they keep score.
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Old Jul 18, 2008 | 11:19 am
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FF program keeps me with US

I fly USAirways exclusively due to their FF miles program. My local airport is served by US and DL, and DL is always less expensive by at least $20.
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Old Jul 18, 2008 | 12:07 pm
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I don't agree. FF program is one, or the, thing that keeps some airlines distinguished from others.
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Old Jul 18, 2008 | 12:30 pm
  #81  
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Originally Posted by magiciansampras
I think the people that fly based on FF program are in the minority.
Every "smart" business traveler I know chooses their flights based on FF programs. Many, myself included, have actually made their clients aware as to the airlines on which they prefer to fly. Let's face the facts: the business traveler, by paying last minute, exorbitant rates, basically subsidize the cheap seats in the back of the plane and the airlines are smart enough to realize this. Rewarding the frequent business traveler with a (no longer) free ticket on a plane, with seats which would probably, otherwise, go out empty is one of the most logical things I have seen any airline do.
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Old Jul 18, 2008 | 12:38 pm
  #82  
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Originally Posted by windsmith
I fly USAirways exclusively due to their FF miles program. My local airport is served by US and DL, and DL is always less expensive by at least $20.
I truly pity you. I have been on the phone with USAirways for the past hour - still on hold - trying to get to the right person to pay for an award ticket. It has literally been he!l. Just got disconnected and to call again. Absoutely horrendous. Fortunately I am only flying US one of five legs of this ticket. I don't think I could handle any more.
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Old Jul 18, 2008 | 12:40 pm
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Loyalty programs make money

People seems to be addicted to points (me too!) so why would airlines be any different? If you save 5$ at a drug store on points why would you not want to save hundreds or thousands for an airline ticket?

Plus they make gobs of cash off us...

http://www.cbc.ca/news/background/loyalty-programs/
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Old Jul 18, 2008 | 12:46 pm
  #84  
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Originally Posted by VonS
Every "smart" business traveler I know chooses their flights based on FF programs.
Really? Every "smart" business traveler I know chooses their flights based on which carrier gets them home the quickest.
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Old Jul 18, 2008 | 6:17 pm
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According to AA it only costs them $10 for a mile ticket

Did anyone see the AA Cnbc show about the AA airlines?
It says it only cost them $10 when a customer cashes in a mileage ticket. He said it is very profitable for AA to keep the mileage programs and the credit card mileage.
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Old Jul 20, 2008 | 1:55 am
  #86  
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Originally Posted by windsmith
I fly USAirways exclusively due to their FF miles program. My local airport is served by US and DL, and DL is always less expensive by at least $20.
I fly exclusively *A from SZG because I dont have another choice.
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Old Jul 21, 2008 | 3:31 am
  #87  
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I collect miles on NWA because they fly direct from BOS-AMS where we have family. We can plan to earn and save for future trips but this is going to be harder...

1) they are going to turn into Delta and everyone is worried about what will be

2) the kids wont be under 2years old much longer and then I will need to get more tix.

Will have to still go and will have to pay $ at times, I am certain.

I fly AA because if you need to go from BOS to an island, they usually have the flights using $30-35-60k miles. If it's 60k, you are mostly in Business class.

I fly UA if I am going to another big group ski trip once a year to someplace out west. This 25k econ trip is usually availableif booked well in advance and all of us going know of this.

I just have a rule that I NEVER fly thru Chicago in winter (I don't have any business there) EVER.

These trips, and these carriers have served me well enough in terms of how I use them. If the game all changed and say, UA started flying direct to AMS from BOS, I would retool my earnings and savings accordingly.

However, if the rules, fees and restrictions made all of this less desirable an way to hard to obtain, I would probably alter my planning and travel less frequently in all above cases. We could still visit family, but I would be more able to use the "kids are in school so we cant go" excuse.

In short, my planning is based on a combination of needs and internal rules. I generally pick my carreirs based on how I can most easily earn miles on the ones that get me to where I want to go with the best type of connection. Even if I did have to pay for a ticket--and obviously there are some where you would never use miles, I still have my own restrictions on when I would fly and when I would not fly. Types of trips that may include this for me couple with the fact that I HATE prop planes and AA has 'em, so I wont really fly to NY from BOS, for example. I would honestly rather drive. (then you get to stop off here anyway! http://www.reinsdeli.com/)

we shall see.
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Old Jul 21, 2008 | 6:30 am
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Originally Posted by magiciansampras
With US Air's announcement that they're no longer giving out bonus miles to elites, I have to wonder: why not just bite the bullet and take this huge liability off their hands? Stop giving out miles altogether.

Why don't they do this?

Some will say that, in some instances, the mileage programs make money while the other parts of the airline don't, like United. While this might be true miles are still a huge liability of the airline, no?

Some will say that they need miles to keep loyalty. I call BS on that one. Most flyers fly on 1) price and 2) convenience. Very few folks in the scheme of things fly based on miles.

So let's just get on with it. All airlines should get rid of their miles liabilities and stop this gradual bleeding.


noooooooo, you do not know how many people go out of their way for an extra stop-over or transit just to stay on one airline and earn the most miles possible for their trip........and FT will probably cease operation if no FFP exists......
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Old Jul 21, 2008 | 10:06 am
  #89  
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Originally Posted by magiciansampras
So let's just get on with it. All airlines should get rid of their miles liabilities and stop this gradual bleeding.

And who is going to go first? (And watch all of their loyal FF'ers bail and transfer to the other airlines?)

Never going to happen.
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Old Jul 23, 2008 | 6:23 am
  #90  
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Originally Posted by magiciansampras
With US Air's announcement that they're no longer giving out bonus miles to elites, I have to wonder: why not just bite the bullet and take this huge liability off their hands? Stop giving out miles altogether.

People will go kung fu on their donkey if the airlines ever did this!

(No real contribution to thread except use of cool phrase).
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