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Angry fliers challenge Delta over miles-selling

(Atlanta, Feb 7, 2003) An increasing number of frequent fliers are mad, and they say aren't going to take it anymore.

A law firm claiming to represent SkyMiles members who have had miles confiscated by Delta filed a lawsuit in New York recently. In the complaint, the plaintiffs said Delta is unfairly punishing those who barter or sell the miles they have accrued. The suit is seeking unspecified damages, as well as class-action status.

Sorry folks, but this smells to me like many of the other frivolous lawsuits brought against airlines by lawyers more interested in lining their own pockets than protecting the rights of fliers.

This suit reminds me of the infamous "Airscrip" settlement in the price-fixing case against the major airlines in the mid-1990s. Remember those worthless discount coupons we all got for the trouble of reading through old flight records, program statements and filing for a claim? In that case, the lawyers were the only ones who got any significant reward.

Then in 1998 there was the class-action suit against Delta for imposing capacity controls on awards. Delta settled the suit, and the lawyers claimed a big win for SkyMiles members. But do you remember getting anything out of it? In the end, only about 3 percent of all SkyMiles members qualified for the settlement — which included a 10 percent off coupon or 5,000 miles. Big whoop.

If or when this new suit moves forward, you can expect a similarly thin reward by the time it works through legal channels.

However, Tim Winship, who comments on frequent-flier programs at http://www.frequentflier.com, thinks a ruling could have larger consequences for Delta, saying, "The value of a ruling — whether for or against the complainants — could go well beyond any dollars-and-cents compensation. In the Delta complaint, a ruling will clarify the airline's right to prohibit SkyMiles members from selling their miles."

Watch for roving billboards

On another front, hundreds of disgruntled fliers are glomming on to the popular Delta boards at Flyertalk.com, and turning into a protest group. They want Delta to rescind recent changes to the SkyMiles program that tie medallion status to dollars spent instead of miles flown, as well as changes that make it harder for platinum-level members to upgrade.

According to group spokesperson Mike Seidenman, two members own mobile billboard companies that they plan to use at airports and at the Delta stockholders meeting this spring in New York City to publicize their cause. Seidenman, a medallion-level SkyMiles member from Cincinnati, says that group members have pledged nearly $3,000 so far to fund a publicity campaign. (If you want to follow the group's progress, see http://www.flyertalk.com.)

Despite the protests, and the fact that no other airline has matched its frequent-flier program changes, Delta has made no indication that it intends to back down and reverse any of them.

Delta weathers storm

Don't forget that just three years ago Delta changed its rules, no longer allowing upgrades for SkyMilers traveling on less-expensive L, U or T fares. That met with howls from members, some of whom banded together to set up a Web site (http://www.saveskymiles.com) to collect and deliver feedback to Delta management. In the end, Delta weathered the storm, and has never gone back on those changes. (The site is still active and is now collecting feedback about the latest round of changes.)

Cockroach coach

Delta is not the only airline having to fend off the wrath of its customers. When US Airways announced last fall that it was not going to offer elite qualifying miles to those traveling on low airfares, a group of disgruntled travelers got creative.

They produced plastic lapel pins shaped like cockroaches with the US Airways flag logo emblazoned across the bodies. They also set up a clever Web site (http://www.us-cockroach.com) to track cockroach pin sightings, as well as sell them for $3.50 apiece.

Despite the fact that US Airways was forced to rescind the changes it made to its Dividend Miles program, the cockroach has caught on and remains a symbol of the angst of frequent fliers.

No free bookings . . .

Recently, Expedia.com and Travelocity.com joined Orbitz.com in charging a minimum $5 fee on most round-trip airlines tickets booked on their sites. (Now that airlines no longer pay commissions to any travel agencies, the sites are looking for new ways to recoup costs.)

. . . . Or frequent-flier miles

You might soon be saying buh-bye to those frequent-flier miles you get when renting a car. Alamo and National have stated publicly that they are considering ending their participation in airline frequent-flier programs, and will make a decision this winter. This comes on the heels of Hertz charging up to $2 per rental for those who elect to earn frequent-flier miles.

Online honors

Hilton HHonors is rewarding its members with 1,000 HHonors bonus points every time they make a reservation online (http://www.hilton.com) and complete their stay through Feb. 28.

This article also appeared in The Atlanta Business Chronicle

McGinnis manages The Ticket Portal, a free e-mail newsletter and Internet site for Atlanta-based frequent travelers at www.travelskills.com.

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