'Use it or lose it' and other airline policy changes

General Article
September 19, 2002

Late last month, US Airways initiated a move further restricting the use of nonrefundable fares, with the major U.S. airlines following suit. As travelers may face confusion sorting out the changes, following is an overview on each carrier's policy:

US Airways

On Aug. 27, US Airways introduced a set of policies designed to ensure its ability to continue to offer low fares.

Nonrefundable tickets must be used for the specifically ticketed flight and have no value once the flight has departed. Changes may be made to the nonrefundable itineraries before the scheduled departure, subject to certain restrictions and fees.

US Airways has declared there will be no exceptions to its policy, including for death, illness, military service or jury duty. Previously, travelers had up to a year to apply the value of the unused ticket to another flight, and to choose which flight to use it for.

Travelers who purchased nonrefundable tickets Aug. 27 or later, for travel before Jan. 1 are not allowed to standby for alternate flights, with the exception of travelers who arrive at the airport within two hours after their flight have taken off can standby for a later flight for free.

On Sept. 6, US Airways revised its standby policy as no other airline had adopted it. Their new policy falls inline with the other carriers. Effective Jan. 1, travelers with nonrefundable tickets purchased between Aug. 27 and Sept. 6 for travel after Jan. 1, will be allowed to fly standby for $100.

In addition to the rule changes, US Airways has implemented the following:

• Travelers ticketed by US Airways that qualify for an electronic ticket and request a paper ticket will be charged $25 per ticket; this does not apply when the center's travel agency Navigant International/NW issues paper tickets.
• On transatlantic flights, alcoholic beverages will no longer be offered for free to economy-class passengers.

According to B. Ben Baldanza, senior vice president of marketing at US Airways, "These changes are a necessary response to the rapidly-changing marketplace for air travel. Economic pressures continue to impact both air travelers and the airline industry."

In another revision, US Airways said mileage earned on nonrefundable fares will continue to count toward attainment of the Silver, Gold and Chairman's Preferred levels, which provide valued perks. Under the Aug. 27 announcement, US Airways planned to cease applying those mileage credits toward elite status.

US Airways officials said it made the revisions to its nonrefundable policies in response to customer feedback.

American Airlines

On Aug. 30, American Airlines matched US Airways' "use it or lose it" policy on nonrefundable tickets.

Travelers no longer receive credit for a ticket if they skip or miss the flight, but may make a change before the flight departs and pay the applicable change fee. American's policy applies to nonrefundable tickets purchased on or after Aug. 30 for travel on or after Oct. 1.

American seemed to suggest exceptions are possible, with a spokesman saying, "We can't anticipate every situation a traveler may encounter."

Similar to US Airways, American will let customers with nonrefundable tickets standby for an alternate flight on the ticketed day of departure, if they arrive up to two hours after their flight takes at no cost.

Travelers, who wish to fly standby, may do so but will pay a $100 fee. This policy is effective for tickets issued on or after Aug. 30 for travel on or after Jan. 1.

American said its policy changes "will allow American to simplify its processes and lower its operating costs, while continuing to offer fares competitive with low-cost carriers."

America West

America West customers must now check their luggage at least 30 minutes prior to departure, except in Denver and Atlanta, where luggage must be checked 45 minutes prior to departure.

Customers also need to check-in for their flight at least 15 minutes prior to departure and should plan to be on the aircraft at least 10 minutes beforehand.

America West said the changes were necessary to support its efforts "to provide reliable, on-time operational performance."

Continental Airlines

Continental adopted American's "use it or lose it" policy making nonrefundable tickets purchased on or after Aug. 30 for travel on or after Oct. 1 void if a traveler skips or misses the flight and does not make changes and pays the applicable change fee before the flight's departure.

Travelers who arrive up to two hours after their flight has departed, may standby for an alternate flight on the ticketed day of departure at no cost. Continental has not stated whether it will allow exceptions.

To fly standby on nonrefundable tickets issued on or after Aug. 30 for travel on or after Jan. 1 travelers must pay a $100 fee.

Delta Airlines

Delta's nonrefundable policy is effective for tickets purchased on or after Sept. 5 for travel on or after Oct. 1. Travelers lose the value of the ticket if they don't take the flight or rebook it beforehand.

Delta essentially matched American and Continental on same-day standby for people traveling on nonrefundable tickets, but there are some differences.

Effective Jan. 1, Delta will charge a $100 standby fee and $50 for Delta Express customers.

The Delta Shuttle standby policy is time-dependent. A $100 fee applies on nonrefundable tickets when moving from a peak flight to a peak flight or from an off-peak flight to a peak one. Standby shuttle passengers moving from an off-peak flight to another off-peak one will not be assessed the standby fee.

Similar to sentiments from competitors, Delta said the new policies "cover the costs associated with customers who don't show up for flights, while giving customers who are willing to pay a fee the flexibility to fly standby on a different flight the same day of their reservations."

Delta increased its paper ticket fee from $10 to $20 when an electronic ticket is available and expanded the charge to all customers, including travel agencies, previously exempt from the fee.

Also, Delta is now charging customers for checking more than two pieces of luggage on domestic flights. On Aug. 15, Delta began charging $40 to check a third piece of luggage. This does not apply to carry on luggage.

Additional charges will apply to more than three bags or items in accordance with the fee schedule on Delta's Internet site, www.delta.com/travel. The new charges are necessary because, since Sept. 11, Delta customers on average are checking 20 percent more bags.

While Delta doesn't say why the number of checked bags has increased, the government imposed a new carry-on rule that forbids passengers from bringing more than one bag, plus one personal item, onto the aircraft.

Northwest Airlines

Northwest also matched the policy, but travelers are able to stand by for a same-day flight at no cost.

The policy applies to tickets issued Sept. 4 or later for travel after Oct. 1. Similar to the other airline policies, Northwest travelers lose the value of the ticket if they skip the flight or don't cancel and rebook another flight beforehand.

A Northwest spokesman reported, "Our product is highly perishable, and we believe it is reasonable to ask that customers who buy discounted tickets provide us with notice in advance on whether or not they intend to travel, so we have an opportunity to sell that seat to another consumer if it's not going to be used. "

Northwest isn't ruling out exceptions but will make those decisions "on a case-by-case basis," the spokesman said.

Separately, Northwest followed Continental and others in raising and expanding the scope of paper ticket charges. The airline now charges $25 for paper tickets where electronic tickets are available; this charge applies to travel agencies.

In a related policy change, Northwest increased the change fee to $200 for nonrefundable fares on routes between the United States and Europe, Africa and the Middle East.

United Airlines

United is implementing the "use it or lose it" policy as of Oct. 1 and travelers will lose the value of the ticket if they skip the flight and don't change the booking by midnight of the departure date.

The policy is effective worldwide for travel originating in the United States, Puerto Rico, U.S. Virgin Islands or Canada and applies to tickets purchased as of Sept. 6.

United will charge $100 for same-day standby on nonrefundable fares as of Jan. 1.

Effective Sept. 1, United extended its $20 paper ticket fee to agent bookings, matching the move first made by Continental and later followed by American.

The Center's travel agency, Navigant International/NW, must now charge the airlines' applicable paper ticket fee when a paper ticket is issued where an electronic ticket is available.

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