Nov 23, 2009 6:09 am US/Eastern
Airlines Hit Flyers With New Regulations On Miles
Schumer Wants Probe Of Frequent Flyer Mile Claims
NEW YORK (CBS) ―
First it was the fees, and then the more expensive fares – now, flyers are watching their hard-earned miles disappear in the latest report of airlines squeezing customers.
Looking to jet off for the holidays, but hoping to save by redeeming a frequent flyer reward? You may be in for a surprise this holiday season.
"As the holiday season approaches, we can't let the airlines and credit card companies fly off with our miles," Senator Charles Schumer said.
Flyers and politicians alike have been angered by the recent airline announcements that they will start wiping out frequent flyer accounts. In the toughest move, Jet Blue will yank miles after just 12 months of no frequent flyer activity, beginning on Monday. American, United and US Airways will seize miles after 18 months, and Delta will close accounts after two years.
"That's not right," Grand Concourse resident Lorette Francis said. "What's the point of earning if you can't use, and having a program and then taking it away?"
"They've been cutting some of the services, and they have blackout periods," Navine Aggarwal, of Hell's Kitchen, said. "And even when you book a flight through the miles, the amount of taxes you have to pay and airport fees."
An estimated 10 trillion unused frequent flyer miles are in circulation, worth $165 billion. Business analysts say it's a large liability for an industry that can't afford it.
What flyers find particularly abusive is airlines have been upping the number of miles to earn the free tickets, increasing blackout dates, and now shortening the amount of time before those miles just disappear.
It can now take 25,000 miles or more to earn a ticket. Some programs will allow customers to buy back their forfeited miles, but the cost can be more than buying a ticket.
On Sunday, Schumer called on the Department of Transportation to stop it. He wants the practice regulated so the miles cannot be rescinded, customers must be notified before they miles are taken, and consumers are allowed to keep miles even when airlines merge.
"It's annoying, unfair and it has to stop," Schumer said.
"They really need to cut costs and they're going to do it at the expense of individuals that have these frequent flyer miles that they want to redeem in the future, and they just want to shorten the time length," Miami resident Jerry Haar said. "It's really socking it to the consumer."
What's really burning some consumers is that the airlines are doing it all in time for the holiday travel season.
For more on how to track and get the most for your mileage,
click here.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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