United, Continental execs at odds over loyalty program

The management teams of United Airlines and Continental Airlines have never seen eye to eye when it comes to customer loyalty, and that seems to be causing trouble during their merger preparations. My inside sources tell me that Continental executives don’t quite understand United’s big emphasis on loyalty in recent years.

It also appears that Jeff Foland, who last week was named head of the combined carrier’s frequent-flier program, Mileage Plus, will have a tough job selling United’s current philosophy to his new bosses in the Continental team, which will run the company once the merger is completed, most likely around year’s end…

United’s award blocking an issue in Continental merger

Just as many loyal United Airlines customers hoped that its expected merger with Continental Airlines would put an end to United’s massive blocking of “award” seats made available for mileage redemption by its partners in the global Star Alliance, the carrier made a government filing that raised new questions about its filtering policy.

With all the complex issues United and Continental have to resolve before completing their merger, which would create the world’s largest airline, the “award” blocking is hardly a top agenda item. In fact, I’d be surprised if it has come up at all in their negotiations so far…

Customers gain sway over airlines

If you thought complaints about a policy of your preferred airline would fall on deaf ears, last week proved you wrong. As travel companies struggle to survive the economic crisis, they are increasingly listening to their most loyal customers.

As I reported in this column, United Airlines announced last month that it soon would end advance domestic upgrades, which could be confirmed using electronic certificates top elite travelers get if they fly at least 10,000 miles per quarter. Though United tried to mask that huge loss for its best customers with the promise of automatic “free upgrades” if space in first or business class is still available a couple of days before a flight, the outcry against the new policy was overwhelming…

Continental shows new transparency

As Washington policymakers continue to question the value of global airline alliances, Continental Airlines has shown them a benefit they most likely never suspected: increasing the transparency of sensitive data tightly held by many carriers.

That may not have been what Continental set out to do, but it’s a positive side effect. The very day it officially joined the Star Alliance last week, it uploaded on its Web site “award” seats made available by other alliance members, which its customers can book using Continental frequent-flier miles. It took “nine months of planning and implementation”…