May 06, 2010
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News: AmEx Woos Delta Travelers
A year ago, the credit card industry was at the height of its poor treatment and abuse displayed toward cardholders. The recession wasn't enough to rein them in; it took an act of Congress to accomplish that. Instead of ending the abuse, credit card companies stepped up what some would call "criminal" activities to make changes to card contracts in anticipation of the new law. Shortly thereafter, another industry began slamming Americans with excessive fees while at the same time reducing customer services; the airline industry. Airlines began charging travelers additional processing fees and baggage handling fees. At the onset, some airlines only charged travelers for two or more bags, but shortly thereafter that changed also. Travelers were now being charged for every checked bag. There is now talk that travelers could soon be charged for carryon bags as well. Airlines have given travelers what they call "a perk." Travelers who pay online, in advance with a debit or credit card, will receive a discount; typically $5 per bag.
One airline and credit card company are about to change it all again which is likely to change the business of the both industries. Delta Airlines will not be charging its customers that use their American Express SkyMiles credit card to pay for airfare the checked baggage fees. That would add up to a minimum of a $50 savings for each round trip fare. The new policy goes into effect on June 1, 2010. Family members are also eligible for the discount provided airfares are charged to the American Express SkyMiles card.
American Express will be marketing its new Delta SkyMiles credit card campaign with the added perk highlighted. David Rabkin, Vice President American Express said that the company will focus its marketing campaign on Delta's major hubs. He also stated that the best part of the added perk is that there are no limits on how often it is used. American Express is hoping to capture some of the business it lost during the Delta/Northwest merger when most of the Northwest WorldPerks cardholders remained with U.S. Bank. In its campaign, U.S. Bank wooed travelers its way by developing a new rewards program that allow cardholders to apply miles to a variety of airline travel.