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  KSL.Com > KSL Radio > Travel Show > Feature

Maybe We Won't Lose Those Frequent Flier Miles
Monday, Sep 16, 2002

There are a couple of really good reasons we may not lose our frequent flier miles even if the airline with which we have them does file for Chapter 11 bankruptcy.

First of all, let me say that I will be very surprised if Southwest Airlines does not become the USA's number one carrier of passengers during the next few years. If they don't, it will be because Jet Blue takes off even faster (pun intended). Today's major airlines - American, Continental, Delta, Northwest and United - are bleeding red ink in huge quantities, and they keep reloading and shooting themselves in the foot over and over again in a "feeing frenzy" (see my last travel tip: "Frequent Flier Miles: Use 'em or Lose 'em"). But, neither National nor US Air have ended their frequent flier programs in reorganizing under Chapter 11, and there are a couple of really good reasons: first, the airlines make money selling those miles to credit card outfits and other companies, who use them to get us to use their plastic or service; and second, the airlines themselves have made those miles a huge part of their marketing strategies. Plus, the airlines themselves highly limit the number of seats available for frequent fliers. So, a bankruptcy judge may very well, indeed, leave those programs alone.


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