Can Ua Stop Accepting Us Miles?

[The Gopher]

In response to the USAir fiasco, I bet a bunch of their Elites will begin booking UA using USAir miles. I'm sure our codeshare agreement doesn't allow us to unilaterally end the deal, but I would expect that the long, slow spiral over in DCA just picked up a bunch of speed. To avoid losing all of their USAir miles, I am sure we'll see them booking on UA to protect against a USAir failure. In that case, what about those who are already ticketed? Are their tickets still valid? I know that every flight has a limited number of reward seats available for booking, but one would think that UA must be looking to protect themselves should US completely fail.

 

[WorldTraveler]

There may be terms in the UA-US agreement that allows either airline to unilaterally terminate the agreement but that would not likely be made public.

Generally, once a ticket is issued, the ticket is expected to be honored by the airline on which the segment is sold even if the accepting airline may not get paid. That is part of the reason LH is a creditor on UA, I believe. They have a fairly significant pre-BK claim against UA and are trying to recover their revenues in some way. Given UA's larger network, they are probably more exposed to holding worthless US tickets than in having UA ticketed space on US flights which end up not operating.

UA could make the decision not to honor US tickets if US liquidated but that would result in significant displeasure from the government and from the customers that they might have some chance of gaining.

UA has said the codeshare agreement w/ US is worth several hundred million dollars per year in revenue which will be revenue UA will have to replace in its business plan should US fail. Further, UA will be at a competitive disadvantage given that AA and CO-DL-NW all have a significantly stronger presence on the east coast.

If it's any consolation, I have a friend w/ about 90K US miles who has been trying to redeem them on UA and has no luck. Apparently, UA is being very stingy with frequent flyer seats - which makes sense for a number of reasons. I just gave a UA award ticket to a friend for a trip and had no problems getting the seats I needed but the party was originating on the west coast in a UA strength area and during the winter. It appears from these two experiences that UA revenue management is being careful about the allotment of free seats in markets where US passengers are likely to have miles.

 

[Trip Confirmed]

Apparently, UA is being very stingy with frequent flyer seats - which makes sense for a number of reasons.

..........................


I don't know if they can or not, but from speaking with USAIR high mileage holders in the last few days, it seems that almost all of them intend to burn all that mileage up ASAP, because they don't intend to fly them again.

And they don't want to waste it.

But they DON'T want to actually be booked on USAirways metal.

They all think they they won't exist soon.

Maybe being stingy is NOT the way to go, PR wise.

 

[WorldTraveler]

UA has to do what makes the most sense for them. As it is they will end up holding the biggest bag if US folds. Even if it doesn’t, as you say there are plenty of people who need to find alternate carriers for a couple months – which may be enough to push them over the cliff. US can’t survive solely on the super discounted seats they can sell on all of the spring holidays and spring break. Undoubtedly, all of the Star Alliance carriers will bear some of the brunt and people will be taking trips to places they hadn’t otherwise planned just to burn the miles. Europe will be very delightful (from a temperature standpoint) in just a couple months.

 

[chexfan]

Apparently, UA is being very stingy with frequent flyer seats - which makes sense for a number of reasons.

[post="232925"][/post]​

Actually, isn't the award inventory XY, XC, or XF the same whether someone is using Mileage Plus miles, Divided Miles or miles from any other Partner Airline Frequent Flyer programme?

It doesn't seem like UA discriminates award seats based on which program's miles are going to "pay" for it.

 

[JS]

UA is stingy with award seats, period. I have tried to use my UA miles to fly transcon with little luck.

 

[WorldTraveler]

Although I don't know how UA mileage redemption works for partner miles, I wasn't implying that UA is treating miles any differently for US than for anyone else. I simply was saying that UA doesn't need to take a bunch of frequent flyer awards from anyone particularly given that their loads continue to be strong.

 

[coolflyingfool]

I hope for UA's sake that they are able to somehow curn the amount of US miles that are going to be booked on UA flights. UA passengers will not be using miles to book on to US anytime in the near future. UA needs all the revenue that they can get their hands on, not some other airlines free tickets. Just my thoughts......

 

[UAinPA]

I have not had any problems in bookin award travel on UA. I fly out of DCA and can generally get what I want with little or no hassle

 

[Busdrvr]

I have not had any problems in bookin award travel on UA. I fly out of DCA and can generally get what I want with little or no hassle

[post="233397"][/post]​

Welcome to the board UAinPA!! FWIW, UA doesn't give away seats to U milage holders out of the goodness of their heart, they get CASH for the miles, and UA would rather have the chance to gain that customer in exchange for the milers instead of them flying AMR or DAL instead. I wouldn't worry about U miles, even in the event of a very horrible outcome, someone will be willing to honor the miles to get the business of folks like Gadget freak who appears to fly more than most crewmembers....

 

[GadgetFreak]

I think frequent flyers have been booking flights on alliance carriers with US miles since last fall. At that time I booked 2 first and 2 business tickets for myself and family to go to London in the early spring. It was a trip we had been planning anyways and I wanted to reduce my mileage balance on US. I had been saving the miles for this trip and would have liked to have done it sooner but schedules didnt permit it. I had plannned to just book it on US but changed my mind on that. No one knows if the tickets will be honored is the general consensus. I booked on UA since I am a 1K as well as a CP and I thought that being a 1K couldnt hurt if UA had to decide whether to honor the tickets. Time will tell on this one.

 

[GadgetFreak]

Welcome to the board UAinPA!! FWIW, UA doesn't give away seats to U milage holders out of the goodness of their heart, they get CASH for the miles, and UA would rather have the chance to gain that customer in exchange for the milers instead of them flying AMR or DAL instead. I wouldn't worry about U miles, even in the event of a very horrible outcome, someone will be willing to honor the miles to get the business of folks like Gadget freak who appears to fly more than most crewmembers....

[post="233513"][/post]​

I flew to Tokyo and back the week before Christmas for a business trip and on both the JFK-NRT and NRT-JFK segments the pursers recognized me. I thought it was great from a customer relations standpoint but it sort of scared me


By the way, I have also found UA award availabilty to be pretty good. No complaints.

 

[UAinPA]

Welcome to the board UAinPA!! FWIW, UA doesn't give away seats to U milage holders out of the goodness of their heart, they get CASH for the miles, and UA would rather have the chance to gain that customer in exchange for the milers instead of them flying AMR or DAL instead. I wouldn't worry about U miles, even in the event of a very horrible outcome, someone will be willing to honor the miles to get the business of folks like Gadget freak who appears to fly more than most crewmembers....

[post="233513"][/post]​

Thanks Busdrvr. Would have responded sooner but had to do a quick IAD-LAX run

I agree with Gadgetfreak. My kids just booked thier honeymoon on Lufthansa (IAD to Athens) with US miles and got paper tix just to be sure....

 

[firstamendment]

Oh yea of little US faith. I for one am glad the FF is using all their miles. Just think, when the entire industry has egg in their face and we at US actually survive, we will have shed ourselves of not only higher cost, but the large amount of flyers on free tickets. Wow, BUYING a ticket to fly. What a concept. Don't get too cocky boys and girls. When are you guys coming out of YOUR Chapter 11? Don't count us out, yet.

 

[JAMAKE1]

Firstamendment:

You took the words right out of my mouth...with all that will be shaking out at UAL in the next few weeks, I am not so sure miles are any more secure on UA.