nickofatlanta
Posts: 1272
Joined: Tue May 23, 2000 1:06 am

Will Frequent Flyer Programs Survive?

Sun Sep 16, 2001 10:28 pm

In light of this week's tragic incidents, the airlines have start drastic cost-cutting initiatives. Do you think frequent flyer programs may fall victim to this?
 
Carioca Canuck
Posts: 632
Joined: Sun Apr 23, 2000 4:03 pm

RE: Will Frequent Flyer Programs Survive?

Sun Sep 16, 2001 10:43 pm

Why would they cut FF programs ? They are a plus and not a minus IMO.

It's really the only thing that creates loyalty to a carrier.....in the end generating the much needed revenue that could have ended up somewhere else.

As an example, my preferred airline which is Air Canada, has the "Aeroplan" program of which there are currently about 3 million members.

Having said that, there are only 80,000 of us who are "elites/super elites" in this program (Star Gold) and we as a group account for 50% of Air Canada's annual revenue.

With the enhanced security and longer check in requirements, the perks of being a FF elite member are much more important and beneficial than before. Preferred check in counters, telephone numbers, lounges...etc...etc...it's going to make a difference when we fly, and I think the airlines realise this too.

I was on the phone with AC twice yesterday changing some of the segments on my flight to Brasil on Tuesday and while I have never had complaints with AC staff in the past.....for some reason they were acting over and above the call of duty yesterday and I presume other days too since the attack in NY. Thanking me for flying with them...thanking me for being Elite and my loyalty to AC in the future.

FF programs will be around a long time I think.
 
delta-flyer
Posts: 2631
Joined: Mon Jul 30, 2001 9:47 am

RE: Will Frequent Flyer Programs Survive?

Sun Sep 16, 2001 11:27 pm

I agree with Canuck. If anything, airlines will cater even more aggressively to their FF's in an effort to keep them. I am an elite member at DL and the special check-in counter will now be even more valuable for me.

The cost to the airlines is minimal, just a matter of giving up some otherwise empty seats.

Pete
"In God we trust, everyone else bring data"
 
nickofatlanta
Posts: 1272
Joined: Tue May 23, 2000 1:06 am

RE: Will Frequent Flyer Programs Survive?

Mon Sep 17, 2001 12:34 am

Thanks for your responses. I agree with both of you. Plus the revenue they receive from partners such as credit cards, telecommunications companies that offer miles will help their bottom line which is something the airlines sorely need right now.