Dedicated Frequent
Flyer Program Risks
• Hawaiian
Airlines filed for Chapter 11 twice in recent years.
• United
Airlines is also in Chapter 11 and some airline industry
experts believe that it may not emerge.
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Factors which influence the value of art stock
• American
Airlines teeters on bankruptcy.
• Delta
Air Lines is racking up substantial losses to the tune of $466
million plus.
If any of these
airlines go out of business, or are forced to cut their costs
even deeper, your accumulated frequent flyer miles could
disappear in an instant.
You don’t
think that can happen? Ansett Australia, a major Australian
airline went out of business in 2001. An estimated 3 million
members of its frequent flyer program lost all their frequent
flyer miles and received no compensation.
Just look
at the #1 statement in the United Airlines Terms and Conditions
For Mileage Plus Members:
“1. United
Airlines reserves the right to terminate the Mileage Plus
program without notice, so that, regardless of how much you
participate in the program, your right to accumulate mileage,
certificates and claim awards can be terminated at such time as
United Airlines specifies.”
Let’s see what
Delta Air Lines has to say on this same subject:
“Delta and its
program partners reserve the right to change program rules,
benefits, regulations, Travel Awards, fees, mileage Award
levels, and special offers at any time without notice. This
means that Delta may initiate changes, for instance, impacting
partner affiliations, rules for earning mileage credit,
continued availability of Awards, or blackout
dates.”
Rest assured
that every airline with a frequent flyer program has the same
exit clauses available to them in case they decide that
frequent flyer miles are no longer a good deal for
them.
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