ON BOARD WITH RANDY PETERSEN

Randy Petersen CHEERLEADER FOR MILEAGE PLUS
June 2003
by Randy Petersen

It's springtime, and bankruptcies are blooming.

United, Hawaiian, Air Canada—airline bankruptcies are an epidemic. As the business travel environment continues to wilt under the pressures of international tensions and mysterious diseases, chances are we'll see a few more before we're through.

What of United—the largest airline thus far to seek protection? While I have certainly answered a few questions regarding Mileage Plus over the last few months, it is necessary to continually review my advice.

I still remain a Mileage Plus cheerleader, and one that is on public record as such. Other travel experts have long ago turned tail on United and told members to burn their miles. Here's where I stand on the future for United and Mileage Plus.

Question: Do you still feel strongly that United will not go into liquidation, despite the speculation?

Answer: I think as others have seen lately, there is some positive progress on United's attempts to alleviate some of its labor costs. And while the war in the Middle East and the SARS problem in Asia have not helped, I still do not believe they will liquidate. There are certainly rougher days ahead, but there is enough value and potential in this airline that I still believe it will overcome most, if not all of the obstacles, including challenges to upper management.

Question: Are you still one of United's biggest cheerleaders when it come to the safety of their miles?

Answer: Yes I am, and I am certain I'm the only one who truly is on-the-record as having advised members not to burn their miles. All the other weenie "travel experts" turned a long time ago. Granted, there will be some changes to United that, in the long run, may not be all that great for United passengers. But overall, the advantages will outweigh being just "anybody" on another airline. I've got a lot at stake here—reputation aside—and spend time every day researching to make sure I feel comfortable with giving advice on the future of Mileage Plus miles.

Question: Are you still accumulating miles in United's program?

Answer: Absolutely. I can honestly say I'm earning as many miles with Mileage Plus as at any other time in years past. Certainly not fewer.

Question: Have you taken any actions to speed your use of United miles due to concern about their liquidation?

Answer: I have not cashed in a single Mileage Plus award in almost a year, and certainly not a single one since their December 2002 bankruptcy filing. My miles on United are for the future, and I plan on using them.

As a footnote: I think I can easily say that I was the only person considered a travel expert that was correct in saying that US Airways would make it this far and that there was no danger to their miles when they also filed for bankruptcy last year.

I will be able to say this for United in the years ahead (I'd like to say "months," but their problems are bigger than US Airways').

You can contact Randy Petersen at randy@insideflyer.com.

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