Airline upheaval worries travelers

By Dave Carpenter
Associated Press

The airline business, already in turmoil because of Sept. 11 and an up-and-down economy, is acknowledging more problems and making a change in course.

Three leading carriers took drastic action in the past week: US Airways filed for bankruptcy-court protection, American Airlines unveiled a restructuring and flight cutbacks, and United Airlines announced it will file for bankruptcy this fall if it can't get dramatic cost concessions from its employees and vendors.

The latest upheaval, which will result in fewer domestic flights, has consumers worried about everything from future bookings to frequent-flier miles.

Questions and answers about the effect of the changes:

Q. Is my booking in jeopardy if it's with an airline that's cutting back, considering bankruptcy or already filed for bankruptcy?

A. Not likely. A Chapter 11 bankruptcy filing like the ones involving US Airways and potentially United means an airline is reorganizing, not being grounded. If any U.S. airline does stop flying, other carriers are required by law to accept its tickets on a standby basis. As for shrinking schedules, consumer experts recommend double-checking to see if flights or times have changed.

Q. What's the risk that my frequent-flier miles accumulated with one of the troubled airlines will be wiped out?

A. Low. It's possible they could be tightened to require more miles. Even if an airline goes out of business, an unlikely prospect so far with US Airways and United, a competitor would probably step in and honor 25 percent to 50 percent of the miles to try to create loyal new customers.

Q. Will a cutback in flights mean fewer cheap seats?

A. The abundance of rock-bottom fares may be threatened if the industry has contracted, but it's still a buyer's market for this fall, with fares at a 15-year low. Some of the planned cuts in flight schedules by major carriers — anywhere from 6 percent to 13 percent among American, United and Delta — are seasonal rather than necessarily permanent reductions.