US Department of Transportation Probing Rewards Programs of Major US Airlines

SOURCE finance.yahoo.com
The US Department of Transportation is probing the rewards programs of major US airlines to understand their impact on consumers. The probe could lead to changes that disrupt the profit centers for airlines and credit-card issuers. Loyalty programs have come under fire for luring customers with rewards and then stripping perks. The Transportation Department has taken a hard line with airlines on practices harming consumers, and the probe is the latest in a series of government actions.

Key Points

  • US Department of Transportation probing rewards programs of major US airlines
  • Government seeks to understand impact on consumers, including devaluation of rewards and hidden fees
  • Probe could disrupt profit centers for airlines and credit-card issuers
  • Airlines under scrutiny for sudden changes to rewards programs

Pros

  • Government scrutiny may lead to changes that benefit consumers
  • Increased transparency in airline rewards programs

Cons

  • Disruption to profit centers for airlines and credit-card issuers
  • Potential loss of travel benefits valued by consumers