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Transcript of April 11th FlyerTalk Live! Chat

With special guest Debra Benton (Director of Loyalty and Partnership Marketing, Southwest Airlines Rapid Rewards).



Randy Petersen
Looks like we've got a little technical problem with southwest - nothing that we can't cover eventually but i thought I'd sub in and make a go at this. so, what are your questions, comment and follow up tonight?

ldsant
I am curious why they don't allow you to combine tickets and "wait" longer than a year to use them?

Randy Petersen
Understand that i can't speak officially for Rapid Rewards, but my guess that their one year free ticket use is a variation of expiring miles. All other programs expire with 3-year non-issue, Southwest just decides to use their expiration in a different way. While not perfect, it is the only way they can truly make no capacity controls work for them. It's that or "no you can't use your award today" Generally speaking most of us like the fact that when we own a free ticket we can actually use it.

MileKing
What's the big mileage offer you mentioned on FlyerTalk a few weeks ago?

Randy Petersen
MileKing - yes it was the insideflyer offer and you have to admit, there's not many ways you could earn 2,500 Starwood points or 2-3,000 frequent flyer miles for only $60. We have just launched the same with Delta and coming up northwest. More surprises coming ......

proudcoelite
randy, How come I never see inside flyer at Barns and noble

Randy Petersen
proudcoelite - not in Barnes and Noble. Truth is, we tried it several years ago and failed miserably. The "slotting fees" similar to grocery stores took all our margin and we got no placement. We then tried airport location newsstands and when i shopped them, took me 10 minutes to find us...hidden away in a corner. Needless to say, we'll never be Conde Naste Traveler and be able to simply give away this stuff on the newsstand. Hopefully we'll be able to build our reputation again as a niche magazine and online and by subscription will help. Really, we're lucky to still be in business with all the carnage in this sector and look forward to building a better magazine for you all. While we'll take a shot once and awhile, always remember if not for InsideFlyer, there would not be FlyerTalk.....

proudcoelite
Randy - how many votes for CO came from @coair.com

Randy Petersen
Freddie voting. We actually perform a series of audits on results which not only trap IP addresses for problems but also industry email and other addresses for voter promotion and suppression. I'm tickled to say that no votes for CO - or for that matter, any other program contain any industry voting - 100% certified public votes.

avek00
If one airline has to go this year, who will it be? Boeing CEO Phil Condit, as well as S&P, have indicated that they do not believe that all of the major carriers will be able to escape BK.

Randy Petersen
Good question. I was completely blown away when just days ago Rono Dutta of United repeated that they have not ruled out bankruptcy. Yes things are real bad. The recent price war move by America West either indicates they are in trouble and trying something new or they are just trying to move the market to an area for them to balance business airfares. That is not a good sign when people introduce drastic pricing changes like that. US Airways may be in that ballpark but i'll go out on a limb and say it's not them over the next 6 months. now, do we care about the survival of the airline or just our miles?

Randy Petersen
Come on? Hey, a year ago and certainly after 9/11 none of the experts said they'd be around today - except me. While not an aviation expert, my record stands proud... my comment was on my record that US Airways would still be here today.

B747-437B
randy - have you read CO's new amended 10-K filing? where they discuss the lack of financing for their aircraft beyond 15 deliveries through May?

Randy Petersen
I haven't but i'd love to hear your thoughts. I hear you are a pretty smart guy in this area and would love to learn....

B747-437B
if US Airways Group defaults on LGA lease payments to PANYNJ, then CO has rights to re-occupy the terminal

proudcoelite
CO needs to buy National Airlines

Randy Petersen
i guess they may since they will now compete with America West...interesting comment about CO and National.

B747-437B
so randy - who did YOU vote for in the Freddies :)

Randy Petersen
My votes in the Freddies? Heck, I can't change them now but name a category....

Debra Benton
(This user has entered FlyerTalk Live!)

Randy Petersen
Whoops, saved by the bell......uh, SWA.

Debra Benton
I am so sorry! I got my Central and Eastern time mixed up

Randy Petersen
Well, on FlyerTalk Live!, we are very pleased to have Debra Benton of the Southwest Rapid Rewards program with us tonight. This is a Freddie Award winning program and recently i noticed that last year they gave over one million free tickets away. In fact, they give away more free tickets per member than any frequent flyer program in the world. Whew... Welcome tonight Debra and we're glad you could join us. I tried to fill in but there's really only one Rapid Rewards. Before we start with questions, how's things going with the program?

Debra Benton
Wonderful. We have been working on some exciting new promotions and features and have been getting some wonderful feedback from our Members so we really feel that we are hitting the mark.

Randy Petersen
I know that you're lock step with some of the other programs for new partner features like Nextel, etc. So let's start the questioning....

proudcoelite
Will Southwest ever issue elite status

Debra Benton
We do have our Companion Pass status which is probably the most lucrative level of any other programs. As for other types of elite statuses, I have learned at WN to never say never. I can however say that it is doubtful since we strongly hold to our core values and believe that all our Members are equally high status. Thanks for the question though.

Mikel at WebFlyer
This question was submitted earlier by Gwen: Do you ever extend the year time limit to use an award? I got my first award and put it away, not realizing it was only good for a year. Then when I found it again, it had already expired. I really would prefer the awards to not have such a quick expiration date, or to allow the flyer to chose when to use the award, rather than have them sent automatically. Thanks for your answer.

Debra Benton
That is a good question. We do give one-time exceptions to folks who have tickets expire. Just send it to Customer Relations with a $35 fee to process it and they will take care of you. As for changing the expirations or choosing when to receive the award, we structured Rapid Rewards to be easy for our Members and have found that they like the automatic mailing of the tickets so that they do not have to keep up with credits. It also assists us in being able to keep the most important feature of award tickets, the ability to not restrict seats. Thanks for the question!

Randy Petersen
I've never heard that before.....that is very cool. Heard first here on FlyerTalk.

keithguy0
How many new destinations (if any) will Southwest add this year?

Debra Benton
Currently the plan for 2002 is to not add any destinations. This has been an unusual year for the airlines as you know and we feel it is more important to connect our dots and keep a watchful eye on the future to make the best plans. Thanks!

proudcoelite
Will Southwest ever partner with jetblue

Debra Benton
Interesting question... I can't really answer that specifically but know that we don't partner with any other airlines so would doubt that we would partner with Jetblue.

Mikel at WebFlyer
This question was submitted earlier by Justin Strauss: As a college student in the NY area I am looking to break into the Airline industry. Any tips or information on Internships or anything of the like?

Debra Benton
My best advice is to contact the People department of the airlines that you are interested in. If they have internships, they would typically go through that department. And depending on your interests, you could contact the department that you are particularly interested in to see if they have any internships. I know that sometimes, if you want to stay in your area, you can see if they have a local office. Good Luck - it is a great field to work in!

boag
Do you ever make exceptions on blackout dates on award tickets? It seems the list has expanded.

Debra Benton
The list has been fairly consistent for the past few years at about 12 days. We really analyze this each year and try to keep it relatively low while still maintaining our ability to offer Award Tickets without any seat restrictions on the other 353 days. Thanks for your question.

Mikel at WebFlyer
This question was submitted earlier by cs dude: Being our nations profitable airline, will Southwest Airlines venture into frequent flyer agreements with other airlines?

Debra Benton
I don't see that being in our future. One of the ways that we have maintained our ability to stay profitable is to do what we are best at and to keep control over our costs. And one of the ways that we can keep Rapid Rewards profitable to the company is keep expanding ways for people to be loyal to Southwest Airlines itself.

Mikel at WebFlyer
This question was submitted earlier by Michael Newhouse: Could SW make obtaining a ticket to be used by a Companion Pass passenger a bit less cumbersome, perhaps by internet use, rather than standing in so many lines (curbside, ticket counter, security, gate)? Greatest Airline flying!

Debra Benton
I am so glad that you asked that question. We are currently working on some new technology and processes that will hopefully make everyone's airport experience better. Another thing that can help specifically Companion Pass and Award Ticket travelers is to pay their security fee over the telephone when they book the flight. This gives you an itinerary so you can avoid the baggage lines if you don't have bags to check. Thanks!

Randy Petersen
Well, let me jump in here with a question or two... Debra, wondering if in your wildest dreams we'll ever see Rapid Rewards revert to miles format rather than credits?

Debra Benton
Actually Randy, I am waiting for the other guys to start doing credits. It seems a lot easier to me to count trips than miles. :)

Randy Petersen
Oh, you are on the top of your game tonight...good answer and i'll let it alone....

Randy Petersen
A few years ago SWA got into a relationship of some sort with Icelandair. Was there or would there ever be a chance it might extend into some limited time special only relationship with Rapid Rewards?

Debra Benton
We don't have that relationship anymore with them. And while I never say never, I don't see us revisiting that again. Thank you for asking.

B747-437B
How does Southwest account for the liability of outstanding Rapid Rewards credits? Does the one year expiration mean that you simply don't carry them on the books year-to-year?

Debra Benton
Credits are good for twelve months from the time of receiving them. So as long as you get the next 15 before that credit expires, you will get an award ticket. However, each credit is on its own 12 month calendar. Any expired credits are not held "on the books." While many folks ask about changing expirations, we find that they would prefer to have the credits expire to us having to start restricting seats like the other guys. Thanks for the great question!

Tim
With Southwest giving the passenger the ability to re-use the value of their ticket at no surcharge via the website, is the amount of denied boardings up considering the number isn't as predictable as airlines that sell, for the most part, nonrefundable fares?

Debra Benton
That is an excellent question, but I am afraid that I cannot answer it. I have not seen any statistics on that change or area. Sorry I can't help you :(

student
when will the credits for taking statements by email and checking online begin to post?

Debra Benton
Actually, we are running that program soon and it should post by the end of the month for 1st quarter. I will also tell you some news that we have regarding statements... After Sept. 11th, we did not mail statements in Oct or Jan as usual. Based on the response and the cost savings, we have decided not mail statements. So many people are getting them online or can call the VRU for individual statements that we preferred to use that cost to do additional programs that will more benefit the Members. However, anyone that did chose to get statements online will still get their credits for choosing that. Thanks!

Randy Petersen
It looks like time has crept up on us and I know like me we have enjoyed the frankness of your answers and I know many FlyerTalkers are die-hard fans of Rapid Rewards. In fact, you'll probably see some of these very same people in New York on April 25th for the Freddie Awards. Good luck to you then and we hope you'll be able to attend. Another round of applause for Debra and Rapid Rewards and we'll open things up for general chat and maybe even an open question or two to Debra in the open session.

Randy Petersen
Ladies and Gentlemen, Rapid Rewards....thanks again Debra and a special FlyerTalk gift is on it's way. Shall we go to open session and still talk frequent flyer?

Debra Benton
Thank you very much. I really appreciate the opportunity to talk with all of you! See you onboard!

Debra Benton
Since I was tardy coming on, I don't mind hanging out for a bit longer if anyone has a question or so I can "listen in"

bcalsk
any new cities? Boston or Fresno?

Debra Benton
I don't know where on the list any of those cities are. I just know they are not likely to be this year.

ldsant
Debra - just thought I'd let you know that one thing I really like about Southwest is that you guys deliver what you promise

Debra Benton
Thank you so much! We really try to do that and I am glad to hear that you believe we do!

B747-437B
any word on the succession to Herb? any changes post-Sept 11?

Debra Benton
The succession has gone great! Jim and Colleen are wonderful leaders and have done a fabulous job especially in light of all the changes since they took over last June. Thanks for asking.

bcalsk
any way to get load factors on flights so as to book the less crowded ones when planning a trip?

Debra Benton
I don't know of any way to check load factors by flight, but I will pass on the idea to the sw.com folks.

Debra Benton
Thanks again everyone. Good-bye!

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