IN many ways, air travelers have become blasé about flying on bankrupt airlines because so many in the United States have gone in and out of bankruptcy court since the early 1990's.þþBut the sheer size of United Airlines, the world's second-largest carrier by revenue, means that any consumer-related changes that occur as it restructures could have widespread effects in the industry. Travel experts say passengers should carefully watch what United does, though they should not rush to cancel tickets or change travel plans. þþUnited filed for bankruptcy protection on Dec. 9 mainly because of high costs and a falloff in business travel. As of mid-January, it had announced only one daily flight cut from its schedule. United has 1,700 daily flights, a nearly 6 percent drop from its schedule on Dec. 9, a normal decrease at this time of year. þþThe airline says, though, that it intends to cut capacity by 6 percent through the spring compared with the same period last year, so fliers will see a slimmer schedule. Analysts on Wall Street say that United will have to cut capacity by as much as 13 percent this year to move toward profitability.þþThe cuts will probably affect service to small and midsize airports rather than service between hubs like Chicago and Denver. During economic slumps, big airlines like United usually try to reinforce their hub operations. United has announced, though, that as of March 30 it will no longer fly between Auckland, New Zealand, and Los Angeles. United said passengers who had booked travel after that date could use their tickets on Air New Zealand.þþÿThere's much-talked-about overcapacity out there,ÿ said Bill Oliver, vice-president of the Boyd Group, an aviation consulting company in Evergreen, Colo. ÿUnited is going to have to bite the bullet in some markets.ÿþþThe American Society of Travel Agents recommends that passengers use credit cards to pay for their plane tickets, so if the airline does not provide the promised service, the passenger can refuse to pay the charge.þþAs for its frequent-flier program, United has not made any changes yet. It said that it would honor all miles and that passengers would be able to accrue miles in the usual manner, by taking flights or using the linked credit card issued by Bank One. The program has 40 million members and 12 million unredeemed frequent-flier tickets. þþSome industry experts say that United could even offer more incentives, like bonus miles, to its frequent fliers so they will continue flying United. Likewise, its rivals could try to woo anxious passengers with their own frequent-flier incentives.þþUnited passengers who often use Red Carpet executive lounges may find that some of them have shut down. The airline has said it might close several to save on costs.þþThere probably will not be immediate across-the-board changes in fares. Some industry executives have said that in the past airlines in bankruptcy drastically cut their fares to keep customers. But economists have done studies disputing this, and restricted fares are already at a historic low.þþLast month, United announced a sale on some leisure fares that was eventually extended to Jan. 10. Terry Trippler, an air fare expert and industry consultant, said that in some domestic markets the lowest fares were cut by 10 percent, and in some international markets, 20 percent. But United's sale price on the country's most popular routes, such as between Chicago and New York, was not necessarily the lowest, he said.þþThis shows that United is not yet willing to drastically cut its fares to entice passengers, even if it is struggling financially, Mr. Trippler said.þþOn Jan. 6, United said it was cutting unrestricted fares in 12,500 markets by about 40 percent. Business travelers in those markets could benefit, but United will have to make more sweeping cuts to truly simplify its fare structure, industry experts said.þþAs for food service, United further reduced its offerings on Jan. 7. The cuts it made before its bankruptcy filing mostly affected economy class. But the new changes also affect business and first class passengers. For example, those passengers on most North American flights will now get a deli and salad plate rather than a hot lunch.þþTravelers on certain routes will also notice a difference in planes. Part of United's plan to cut capacity is to replace large planes on some flights with smaller regional jets. The smaller jets cost less to operate, but they have less roomy interiors. United's contract with the Air Line Pilots Association places a cap on the number of regional jets it can deploy, but United is negotiating with the union to lift that limit.þþUnited has also said it was trying to trim its fleet of wide-body Boeing 747-400's. Passengers used to flying those planes on many routes will probably find themselves boarding a Boeing 777, a smaller wide-body plane that has almost the same range as the 747. But United will have to keep the 747-400 on some trans-Pacific routes because of the distances, said Jamie Baker, an airline analyst for J. P. Morgan Chase.þþPassengers might encounter other inconveniences at airports related to United's bankruptcy. For example, a sushi restaurant at Ronald Reagan National Airport in Washington has begun rejecting food vouchers issued by United and US Airways for fear of not being paid. þþTravelers who want to follow consumer-related changes at United can check the following Web sites: united.com, fly.faa.gov and these consumer sites, johnnyjet.com, flyertalk.com, and joesentme.com. þþ
Source: NY Times
