Ever hear airline passengers complain about how long check-in security lines are? Imagine their fury when their frequent flier miles are put near the end of bankrupt carriers’ creditors lists. That's what could happen if both US Air and United make emergency landings into Chapter 11, as seems increasingly likely.
Actually, airline loyalty program participants may not mind this latest insult, should it come to pass: Between blackout days and limited numbers of seats set aside for them, airlines’ best customers should be used to second-class treatment.
These valuable customers ought to be recognized as more than just another set of creditors. To be fair, executives at both companies have been making the right noises about allowing frequent fliers to keep amassing (how nice of them) and redeeming miles. But this can change either at management’s, or a bankruptcy judge’s, whim.
If this happens, I hope carrier executives fight vociferously to preserve their frequent flier programs. Bankruptcy judges may not know enough about marketing to understand the risks of alienating best customers, but airline management should.
Passengers who have demonstrated loyalty to these carriers in hopes of upgrades and free flights will surely abandon them, making the climb out of Chapter 11 that much more arduous.
Chapter 11 bankruptcy, which involves reorganization, isn’t Chapter 7 – total liquidation – bankruptcy. Loyal passengers are key to keeping one from sliding into the other. If airlines decide – or are forced – to wipe away what loyal customers have amassed, the only thing flying will be fur.
To respond to the opinions in this column, please contact rlevey@primediabusiness.com
