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eMoney News

US airline revamps loyalty scheme
7 Jan 2011

A US airline has revamped its loyalty scheme in a bid to attract more customers and boost revenue, it has been revealed.

Southwest Airlines, the largest low-fare airline in the US, has updated its frequent flyer loyalty programme, known as Rapid Rewards, to increase revenue by "several hundred million" dollars.

Members will now accrue a credit for each flight they take and can earn a free trip after earning 16 credits. Customers will also be able to earn more points if they travel first or business class.

To simplify the system, passengers will not earn more credits for longer flights and they can not accumulate more than 16 credits.

Gary Kelly, Southwest's chairman and chief executive, expressed his belief that the $100 million (£64.5 million) investment will pay dividends in the future.

He said: "If we get our fair share of frequent fliers, the opportunity is huge. We're very confident this is a good investment."