Hi all,
In my efforts to decide between joining UA and TG's frequent flyer program, I stumbled across http://www.uawatch.com/
Most of you probably know of this site, however for the newbies out there like me, you may find this site of interest. Of particular interest is a recent article by "travel expert" Theo Brandt-Sarif:
I now predict one of three scenarios, and have assigned probabilities for each:
* United obtains private financing provided it pares back costs even further, which will almost certainly require halting of payments into pension plans, more salary cuts and possible union resistance. However, success under this scenario would place United in the best competitive position relative to the other majors. Probability 40%
* United is liquidated, and another airline or private equity firm familiar with financing airlines cherry-picks United's best assets (including prime routes and aircraft), possibly honoring frequent flyer miles in an attempt to retain the loyalty of United fliers. Probability 40%
* United is liquidated, and ceases to be an operating entity. Probability 20%
There you have it. Certainly these are "wild" predictions without much to go by in terms of precedents, but I do want to help those of you with United frequent flyer miles get a sense of risk. My guess is a 20-60% chance you will lose all your frequent flyer miles if you do nothing in the next 12 months.
Any comments on this? If this is anything to go by, the future certainly does look bleak for UA frequent flyers, and is definately making me think long and hard about joining the UA mileage plus program (despite their excellent accrual and redemption rates).....
In my efforts to decide between joining UA and TG's frequent flyer program, I stumbled across http://www.uawatch.com/
Most of you probably know of this site, however for the newbies out there like me, you may find this site of interest. Of particular interest is a recent article by "travel expert" Theo Brandt-Sarif:
I now predict one of three scenarios, and have assigned probabilities for each:
* United obtains private financing provided it pares back costs even further, which will almost certainly require halting of payments into pension plans, more salary cuts and possible union resistance. However, success under this scenario would place United in the best competitive position relative to the other majors. Probability 40%
* United is liquidated, and another airline or private equity firm familiar with financing airlines cherry-picks United's best assets (including prime routes and aircraft), possibly honoring frequent flyer miles in an attempt to retain the loyalty of United fliers. Probability 40%
* United is liquidated, and ceases to be an operating entity. Probability 20%
There you have it. Certainly these are "wild" predictions without much to go by in terms of precedents, but I do want to help those of you with United frequent flyer miles get a sense of risk. My guess is a 20-60% chance you will lose all your frequent flyer miles if you do nothing in the next 12 months.
Any comments on this? If this is anything to go by, the future certainly does look bleak for UA frequent flyers, and is definately making me think long and hard about joining the UA mileage plus program (despite their excellent accrual and redemption rates).....