United risks customer loyalty over award blocking

United Airlines seems to be playing a dangerous game. It has implemented an “award” redemption policy that saves the carrier a lot of money but has been denounced by loyal customers as deceitful. In frustration, some of those passengers are turning their backs on United, depriving it of valuable revenue.

The customers want the airline to stop blocking “award” seats on flights operated by United’s partners in the global Star Alliance, which those carriers have made available for mileage tickets. United, however, is balking. Apparently, it saves more money by not having to pay its partners for those seats than it loses by driving some passengers away. It’s likely to continue to balk until the balance shifts. But how long will it take?…