A U.S. Transportation Department study of airline frequent flier programs has come to the conclusion that the programs are generally fair in following the rules they make, but that the rules and conditions can be very confusing.
The report, prepared by Christopher Ward, the assistant inspector general for aviation, comes at a time when the Big 3 airlines have joined others in changing their programs to reward spending rather than mileage, and when Delta has begun using variable charts for awards.
Among Ward’s findings:
- 630 million people belong to programs, 300 million of them in the U.S. (of course, the actual number of people is smaller, since many belong to more than one.
- Overall, the number of miles required for domestic round trips has not changed much over time.
- In a survey of available seats in March 2015, American and Delta had seats in some redemption level on 99% of all flights, and 63% had seats at the lowest level.
- Availability varies widely depending on route and season, but there’s no way for a program member to identify seats except by trying to reserve them.
- DOT has had relatively few loyalty program complaints, possibly because few people believe they have real rights under the programs. Of 76 complaints filed in 2012-14, Ward checked 36, and found 4, or 11%, worth further study. Typical complaints involved lack of notice for last-minute rule changes.
Ward concluded that while airlines have ‘wide latitude’ in their terms and conditions, “improved oversight through training and rulemaking will provide consumers with better protection of their frequent-flier programs.” That part of the recommendation will result in new training for DOT analysts in identifying any unfair and deceptive practices.
