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The US Department of Transportation (DOT) launched a probe against US airlines' frequent flyer programs to ensure the transparency and fairness to their passengers.
The investigation will look into four biggest airlines in the US such as American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines.
Feds Urge to Check How US Airlines' Implement Frequent Flyer Programs
The DOT wants to see if these airlines a not making it harder for customers to use their points. Transportation Secretary Pete Buttigieg said the investigation will look at some important factors, including how airlines may lower the value of rewards points after people earn them.
The authorities would also like to know how they set prices for flights, extra fees they charge, and how airline mergers may affect rewards programs.
Buttigieg said, "Our goal with this inquiry is to ensure that customer rewards are protected from any practices that would diminish their value, benefit, or availability."
Frequent flyer programs provide customers with points or miles when they fly. The points are redeemable to free flights or other benefits. But, these programs have changed in recent years.
Many points can now be earned using airline credit cards instead of just flying. These programs make a lot of money for airlines. That's why the DOT wants to understand how they work and how they affect customers.
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Opinions Are Divided Regarding US DOT's Frequent Flyer Programs Probe
Passengers have complained that airlines are making it harder to use their points. Some say airlines are raising the number of points needed to get a free flight or charging extra fees, which lowers the value of the rewards.
The DOT is giving the airlines 90 days to share the information they need for the investigation. Some groups that protect customers are happy about the DOT's investigation.
Meanwhile, Airlines for America, a group that represents US airlines, defended the programs. They said many people enjoy being part of these loyalty programs, which let them earn rewards for travel or other benefits.
Delta Airlines, with over 100 million members in its SkyMiles program, added 8.5 million new members last year. Southwest Airlines said their Rapid Rewards program offers flexible travel policies and many chances for people to use their points for flights, according to CBS News.
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