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-   -   Independence Air - radically new frequent flyer program (https://www.flyertalk.com/forum/milesbuzz/9527-independence-air-radically-new-frequent-flyer-program.html)

hersko Mar 8, 2004 4:16 pm

If you go with the points for delayed flights idea. Add delayed luggage return to that list. Call it "We snooze, you win"

If you want to be different and make it so points are easily spent, maybe go away from the free flight model. Instead of 25,000 miles for a free flight, maybe do something like 2,500 miles for 10% off. Follow Starwood's lead and have no blackouts with guaranteed mile usage if the seat's available for purchase.

jfe Mar 8, 2004 4:55 pm


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Nicksterguy:
I read the previous post and I am so amazed that there are so many smart asses here on FT.
</font>
You haven't visited OMNI, have you http://www.flyertalk.com/forum/wink.gif


RobotDoctor Mar 8, 2004 7:17 pm

If Independence Air aligns with Star Alliance then maybe, just maybe, I will fly them when need be. Oh, wait, that is old news since ACA wanted to end the UAX relationship. Therefore, my chances of flying IA is, with all due respect, slim and none and I think slim left the arena.

IAD-Pax Mar 11, 2004 8:00 am

Atlantic Coast Airlines/Independence Air would do well to (1) emphasize basic customer service; and (2) establish one or more alliances with major carriers. During 2003, I took more than 50 ACA flights. Regarding (1) (customer service) I would estimate that at least 40 of them were late, and more than a handful of flights cancelled, some for very poor reasons. For instance, ACA had a 5.30pm (about) CRJ departure from LGA to IAD. This was a convenient time for me, and I scheduled it nearly every Friday afternoon. However, this flight was frequently cancelled -- not due to weather or other unpredictable problems -- but because ACA scheduled this flight as the last leg for a crew that started off on a 4 or 5 leg day from Indianapolis. Because of prior flight times and mandatory FAA regulations regarding maximum crew flight times, this flight had to actually take off from LGA within 30 minutes of scheduled departure or the crew could not lawfully complete the flight. After several cancellations (each of which involved not only inconvenience but an unreimbursed $180+ hotel charge), I changed my plans to take the 7.00pm United mainline flight, even though it was a less convenient schedule. Moreover, in early 2003, ACA deleted one of three IAD-LGA late Sunday afternoon flights, despite the fact that all three were routinely booked 100%, causing regular travellers much inconvenience (i.e., I then had to schedule a 2pm flight and spend less time with my family). Unlike many of the schedule problems airlines encounter due to the nature of their business, these types of problems are self-induced and generate particular customer service problems. The other customer service problem that ACA needs to address is the delivery of baggage at their hub at IAD. I have routinely waited 45 minutes and sometimes waited as long as 90 minutes on a Friday night for the bags from my flight to be delivered to carousel 1. This is clearly a staff scheduling (or perhaps, ground support equipment) issue, but also clearly under ACA's control. I sincerely believe that ACA should take a top-to-bottom look at its entire customer service operation because it is this operation, more than anything else that ACA can do, which will build customer loyalty. Regarding (2) (frequent flyer alliance) ACA should not underestimate the pull of the major airlines frequent flyer programs. The ONLY reason I stayed with ACA as long as I did was because of its tie-in with United Mileage Plus. As soon as the US Airways flights became available for Mileage Plus credit, I switched to US Airways because of superior customer service. If ACA's business model is primarily to aim at the leisure market, then perhaps a major frequent flyer alliance is less important because pure leisure travellers typically do not accrue enough mileage for frequent flyer status (etc) to make a difference. But for a business traveller like me, it will make a big difference. Even if the benefits of an independent ACA frequent flyer program are superior to United Mileage Plus or AAdvantage -- who wants to redeem points for a trip to a second tier eastern city? The key for ACA's frequent flyer program is not the internal benefits, but the ability to earn mileage on ACA and redeem it on other carriers with flights to more desireable destinations.

I wish ACA good luck on its new endeavor. It is certainly a challenging time in which to make a grand strategy play as that which it plans. If ACA can provide good customer service and reasonable frequent flyer alliances, I will be back in the A Concourse at IAD. If it cannot, I am likely to be a customer of its successor as the United Express carrier in IAD.

Tango Mar 11, 2004 10:10 am

One of the major flaws with FF programs is to award miles based upon miles segments/miles flown regardless of routing. It would make more sense to only award miles the way the bird flies. If you fly from DFW to NRT, you should only get the miles as if this was flown as a non-stop. The current systems allow you to do odd routings such as DFW - LAX - ORD - NRT, for roughly the same price as the non-stop flight. The airline is loosing revenue by transporting passengers on extra flight segments. If everyone took the most direct routing, there would be many more seats open to sell to other passengers.

Alysia Mar 11, 2004 10:43 am


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Tango:
One of the major flaws with FF programs is to award miles based upon miles segments/miles flown regardless of routing. It would make more sense to only award miles the way the bird flies. If you fly from DFW to NRT, you should only get the miles as if this was flown as a non-stop. The current systems allow you to do odd routings such as DFW - LAX - ORD - NRT, for roughly the same price as the non-stop flight. The airline is loosing revenue by transporting passengers on extra flight segments. If everyone took the most direct routing, there would be many more seats open to sell to other passengers.</font>
No! But if this were to ever happen, some FT'ers would have a heck of a lot of time on their hands as they wouldn't be spending hours in front of the computer trying to figure out crazy routings.

sipples Mar 11, 2004 7:06 pm

I'm intrigued by this idea of "penalties" (points) for less-than-perfect performance. For every minute that the flight is late you get 10 points (or whatever). For every minute it takes to get your bags to the carousel it's 10 points, whether you check bags or not. (That way everybody gets a minimum number of points for a perfect flight.) Subject to (generous) maximums.

You could have some really terrific ads with this. For example: "Ladies and gentlemen, this is your captain. We apologize for the weather delay..." (Cabin erupts in cheers.) Promote it as a competitive advantage, that other airlines won't put their money where their mouth is, so to speak, and that your airline has an added incentive to aim for perfection.

Of course, that's contingent on Independence actually doing a decent job. If everybody's earning maximum points, it'll only slow defections to other airlines.

I think you're hearing a lot of people wondering about point redemption. If you have "Less Than Perfect Points," then it would be fitting to make them redeemable for things people can use with imperfect performance. Hotels stays, for example. But I'd agree that an international partner would make sense. Obviously I'd look at the Dulles international carriers, which I'll list here: Aeroflot, Air Canada, Air France, ANA, Austrian, BMI, BA, BWIA, Grupo Taca, Ethiopian, KLM, Korean, Lufthansa, Saudi Arabian, SAS, and Virgin. Might also consider Cunard's QM2 for your ultimate award.

As for elite status, there are still plenty of perks you can offer: first boarding, preferred baggage handling (if that's possible), blocked seats, free alcohol (passenger and companion), accelerated point earning (for imperfection, of course), guaranteed window or aisle preference (to the point of calling up a non-elite at the gate to issue a new boarding pass), priority rebooking/standby, preferred alternate carrier rebooking (if substantially delayed and as available), one courtesy refundable nonrefundable per year, two free cargo shipments per year (might be good marketing anyhow, and you could call this the "I forgot my golf clubs" benefit), employee "good job" tip coupons (so elites can reward and motivate your exceptional employees), and, for super elites, a personal visit to Independence's flight training center with some airplane simulator time. Elites also get a dedicated reservations line and 12 hour advance e-mail notice of leisure fare sales (such as weekend specials). Might also consider one free family emergency trip (e.g. funeral) per annum for elites.

On rewards and perks, always think of things that (1) the business traveler can't get reimbursed by his/her employer and (2) they can actually use (or at least aspire toward). I agree with the other poster who said that, as a business model, you don't necessarily want people to carry near-zero point balances because they can (or want to) redeem quickly. You want them working toward higher rewards. It's a fine line, though. The rewards can't be too out of reach.

Good luck!

rfrost Mar 11, 2004 7:36 pm

Having had a decent experience on no more than 8% of my ACA flights, I cannot imagine ANY FF program (and particularly one that awarded MORE flights on them) that would induce me to choose them.

dulcamara Mar 11, 2004 10:57 pm


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by rfrost:
Having had a decent experience on no more than 8% of my ACA flights, I cannot imagine ANY FF program (and particularly one that awarded MORE flights on them) that would induce me to choose them.</font>
Amen! ACA just rewarded me by terminating the connection with UA/UAX. AWAC is 100x better. There is no way I'll fly with

"Always late and rude while you wait"air

again. Even now I can book around them to ORD and IAD.

See you in chapter 7.


Max M Mar 12, 2004 10:37 pm

Maybe an award option for free parking @ IAD?

Seriously.

gleff Mar 13, 2004 4:50 am

Let me just reemphasize my earlier point about offering an online booking bonus and giving it to the person who books the flight rather than the one who travels.

Do that and I'll personally send you 60 trips a year. http://www.flyertalk.com/forum/biggrin.gif

925 Mar 13, 2004 3:57 pm


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by gleff:
Let me just reemphasize my earlier point about offering an online booking bonus and giving it to the person who books the flight rather than the one who travels.

Do that and I'll personally send you 60 trips a year. http://www.flyertalk.com/forum/biggrin.gif
</font>
How many miles per booking would it take to swing you, gleff?

JDiver Mar 13, 2004 10:25 pm

Once upon a time... in a land out west, there was... Western Airlines. Pasengers who were targets of a mistaek http://www.flyertalk.com/forum/wink.gif were issued a "flub stub", good for a buck (in those days) at the counter - and later, if I recall, a drink. It was catchy, and the pax loved it.

bobj1s Mar 14, 2004 6:29 pm


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by gleff:
Leverage Independence Air's unique position at Dulles Airport to make its frequent flyers real VIPs at Dulles.

Redemption opportunities could be for free parking, especially valet parking... or airport limo services... free drinks onboard... will Independence Air continue to operate its lounge? Redeem for memberships.

Parking would be a benefit to leisure travelers, since business travelers expense it. But parking could be an elite benefit for business travelers if it meant they had access to valet, drop off the car and go.

Definitely offer an elite level program. Priority checkin, priority security, and priority boarding. Consider a companion pass like Southwest. All elites get lounge access.

If the airline is considering something that's directly revenue-based (I think it could rub some folks the wrong way, but let's go with it) why not take it to its logical conclusion. Why not offer cash rebates instead of redemption? So I buy a $500 ticket and get 3% cash back. Granted the marketing tie-ins are revenue generators, so losing that would be a drawback if you see a Starbucks partnership as an independent money maker rather than a cost.

Another elite benefit would be waiving change fees and (if they exist) standy fees. Also allow same-day confirmed changes at no cost.

Similarly a redemption opportunity would be to use FF credits to pay these charges.

Whatever you do, twelve-month expiring points are a very very bad thing. Don't do it. Don't do it. Don't do it.
</font>

scirel Mar 15, 2004 11:31 am


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by bobj1s:
Whatever you do, twelve-month expiring points are a very very bad thing. Don't do it. Don't do it. Don't do it.</font>
I agree wholeheartedly with this point...it makes FF programs useless to many leisure/occasional flyers. I'll pick a three-year expiring flight over a one-year expiring flight in a second. Even if I have to pay slightly more.

Also, consider lower award levels. Frontier gives away a domestic round-trip for 15,000 miles. Increases the value by a whole bunch and actually puts an award where consumers see it as something within reach, that they might actually benefit from.


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