11. In essence, the Debtors desire to continue during the postpetition period those Customer Programs that were beneficial to the Debtors’ business and cost-effective during the prepetition period. I believe that such relief is necessary to preserve, during the postpetition period, the Debtors’ critical business relationships and goodwill among the flying public for the benefit of the Debtors’ estates. Further, I believe that the total operational and administrative cost to the Debtors in connection with the implementation and maintenance of the Customer Programs is minor relative to the net revenue that they generate for the Company. Therefore, I believe that it is in the best interest of the Debtors and their estates to continue the Customer Programs as they see fit, in the ordinary
28. Honoring Dividend Miles obligations does not involve appreciable cash expense of the Debtors’ estates. Rather, the Dividend Miles participants who redeem mileage credit receive only air transportation from the Debtors on flights that would operate in any event, or other related services from certain other participants in Dividend Miles. The Debtors use the incremental cost method to account for liabilities associated with Dividend Miles. Estimated future travel awards are valued at the estimated average incremental cost of carrying one additional passenger.
31. To the extent the Debtors are not authorized to continue Dividend Miles and continue their participation under the BofA Agreement, I believe that the Debtors risk alienating a proven customer base. Customers who have accumulated Dividend Miles constitute some of the Debtors’ best and most loyal customers. If Dividend Miles, which represent the customers’ loyalty, are not honored, I believe that the Debtors risk alienating the customers who are generally business travelers, fly often, and are less price sensitive than infrequent leisure travelers.