US Airways Bans Reuse Of Nonrefundable Tickets
US Airways today said that effective immediately it will disallow the application of an unused nonrefundable ticket toward any future travel on the airline. The new rule applies to flights within the domestic United States and Canada, and flights from the United States to Europe.
Additionally, passengers using nonrefundable tickets will be unable to wait on a standby basis for alternate flights. Starting next year, the airline also will eliminate the traveler rewards gained on nonrefundable tickets. Beginning Jan. 1, miles and segments earned on most of its nonrefundable fares will not be applied toward Dividend Miles, Chairman's Preferred, Gold Preferred or Silver Preferred status.
"The change makes purchasing airline tickets like many other products that people buy for a specific date and time, such as Broadway shows or sporting events," said US Airways senior vice president B. Ben Baldanza, adding that while some passengers continue to clamor for lower rates, the airline needs to "maintain the benefits extended to higher-paying passengers."
"The difference is that the theater doesn't resell that seat," said Rob Callahan, corporate travel manager with SBC Communications Inc., which sees about $700,000 worth of unused nonrefundable tickets. In the current economy, however, Callahan said even airlines need to limit their year-over-year liabilities. "Now they can see what their contracts are worth."
The use of nonrefundable tickets by corporations steadily has risen. This year, 40 percent of corporate bookings are on nonrefundable fares, compared with 25 percent in 2000, according to Nancy Carlin, vice president and general manager of value-add business at American Express.
Under US Airways' previous policy, an unused nonrefundable ticket could be credited toward a future purchase for up to one year, minus a reissue fee.
Corporate discount programs no longer will be applicable for certain nonrefundable fare classes--generally those with advance purchase and minimum stay requirements, said the airline.
The airline also announced it now will charge $25 to customers requesting a paper ticket when a e-ticket is available on that route, and eliminated the free alcoholic beverages for economy class passengers on transatlantic flights.