Here is the letter sent to us DM members today:
Dear ROBERT S.,
We have heard from many of our top customers - and frankly, some of it wasn't very pretty - about the fare and Dividend Miles Preferred program changes that were announced in late August. We wanted you to hear directly from us that - based on this customer input - we have made revisions which we think strike a fair balance between customer needs and the economic realities of the dynamic airline industry.
Most importantly for our most frequent travelers, miles and segments earned on nonrefundable fares will continue to count as credit toward Dividend Miles Preferred status, allowing for all base miles earned on all standard non-refundable fares to count toward attainment of the Silver Preferred, Gold Preferred, and Chairman's Preferred levels.
Additionally, for travel on or after January 1, 2003, stand-by travel on nonrefundable fares will be allowed with a $100 fee, with restrictions. The previously-announced policy of nonrefundable tickets expiring after their planned date of use will continue. As was always the case, however, nonrefundable tickets can still be changed with the appropriate fees at any time prior to the scheduled flight, as long as you contact us prior to the departure time and let us know you cannot make the flight.
Some of our customers have told us that the original changes seemed punitive, so I would like to explain why we initiated this action. As many know, over the last few years, more and more business travelers have changed their buying patterns in order to take advantage of restricted nonrefundable fares which are less expensive. In fact, many companies now require these fares to be purchased. Admittedly, the complex pricing structure of the airline industry has forced some to this as corporate travel managers look for ways to reduce their costs.
These nonrefundable fares have traditionally been established to stimulate discretionary leisure travel for passengers who have flexible plans and are looking for lower fares. The prices were thus defined to attract travelers that generally don't need to stand by for other flights or fly enough to earn Preferred status. As the usage of these fares for business travel has grown and impacted our revenues, we have been put in the difficult position of either raising fares or modifying the rules to more accurately match our costs of providing the service. We must continue to find ways to balance the public's desire for low airfares with the economic cost of providing frequent, high quality service to the 203 communities which we serve.
We realize that our customers are key to our future success. We appreciate your loyalty and yes, even appreciated the negative feedback that some have voiced. I hope you see our action today as further demonstration of our desire to work with and listen to our customers. The fact that so many of our passengers cared enough to express their concerns shows that we are delivering a level of service that people want to utilize. We have 40,000 employees dedicated to customer service, and as demonstrated by our record setting on-time performance this summer, we plan to continue to earn your business each and every day.
B. Ben Baldanza
Senior Vice President
Marketing and Planning