Randy Petersen: Editor and publisher, Inside Flyer magazine
By STEVE HUETTEL
Published February 16, 2004
Q. Many frequent fliers thought last year was a bummer, with airlines cutting the elite-level miles they could earn on cheap fares and imposing use-it-or-lose rules on nonrefundable tickets. Are frequent fliers going to feel better about how they're treated this year?
At the end of 2003, things started looking a little better. American, Delta and US Airways are making a lot more upgrades available. So elite passengers who spend a little more for coach will end up in first class. And in 2004, network airlines will be leveraging frequent flier programs against the low-cost carriers. If you live in the right (competitive market), you'll see many more bonus opportunities. The big airlines are going to bring their programs front and center. Southwest still can't fly you to Hawaii. JetBlue can't send you anywhere except where you went before.
Q. You sound pretty skeptical that low-fare carriers will keep making inroads against the traditional airlines. What will be the big stories in that competition this year?
It was interesting to watch how Delta ran JetBlue out of Atlanta. That shows in some competitive wars the big guys will win. And two of the top big guys - Delta and United - have their own low-cost carriers. But the big buzz is about Richard Branson starting a low-fare carrier in the U.S. domestic market. He brings a certain sexiness. The improving economy makes for the kind of environment he'll need to make it work. Owning an airline is like owning a sports team. You need a lot of ego and a lot of money. He's got both.
Q. What advice would you give US Airways' Dividend Miles members about their miles in light of news that the airline might sell off assets to keep from defaulting on its government-backed loan?
In the short term, there's no real threat. Long term, there's a legitimate concern.
