U P F R O N T

The New Year: Welcome & Beware
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Welcome back, and to the first issue of 2003.

I'm facing the new year with a vicious head cold and, where travel is concerned, a bad feeling.

Four U.S. airlines are in bankruptcy. United and US Airways continue to operate as they reorganize, while Midway and Vanguard have ceased flying altogether. Midway plans to resume operations as a US Airways Express carrier, but Vanguard's plans and prospects remain unclear. In Nov., National, which had been operating under Chapter 11 bankruptcy protection, threw in the towel altogether. Members of the National Comps program lost their points.

ANC Rental Corp., parent company of Alamo and National, is also in bankruptcy. The consensus is that they'll survive long term. But, for reasons which have everything to do with cost-cutting, ANC has announced very publicly that its further participation in airline loyalty programs is "under review" -- code for: "If our competitors will join us, we'd LOVE to stop awarding miles-for-rentals."

Less visible but no less worrisome is the move afoot by the Air Transport Association, an industry lobbying group, to push the Airline Dispute Resolution Act through Congress. The bill would replace the 30-day "cooling off period" mandated by the Railway Labor Act of 1926 with compulsory arbitration, essentially denying airline workers the right to strike.

Without getting into the bill's specifics, or debating its merits, what we're seeing is a continuation, even an escalation, of the labor-management discord which has played such a large part in keeping the airline industry destabilized.

In all, bad omens for the coming year in travel -- both for the industry and for consumers.

Or -- here's my hope -- is that my cold talking?

Stay tuned.

M I L E S & P O I N T S

Pan Pacific Offers Air Canada Miles
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Through Feb. 28, Pan Pacific Hotels and Resorts is offering 1,000 miles per stay to Air Canada's Aeroplan members. Thereafter, Aeroplan members earn 500 miles per stay.

> More...

Alaska Air Discounts Awards
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Between Jan. 6 and Feb. 28, Mileage Plan members can save 7,000 miles off the regular 20,000-mile Mileage Plan Saver award for travel on Alaska or Horizon Air on the following routes:

• To, from, or within California
• Between Anchorage and Cordova, King Salmon, Dillingham or Bethel
• Between Anchorage and Chicago

Travel to or from Mexico and Sun Valley, Idaho is excluded.

> More...

Earn LAX-SFO Bonus from American
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Between Jan. 7 and Feb. 11, AAdvantage members will earn 2,000 bonus miles for roundtrip travel on AA's nonstop service between Los Angeles and San Francisco in full-fare economy (Y, B), or double miles for travel in other economy fares (H, M, Q or V).

Register online at http://www.aa.com/offers using promotion code LASFO.

Earn Gold Crown Points at H&R Block
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Best Western has added H&R Block as a Gold Crown Club International partner.

GCCI members can earn 200 points at participating retail H&R Block Tax Offices for first-time clients and 75 Gold Crown Club International points for existing clients. Or, earn 75 points for using Block's online tax-preparation service, whether you're a new or existing client.

In addition to the Best Western tie-up, H&R Block has mileage relationships with America West and Six Continents.

> More...

Full-Y Fares Rate OnePass Elite Bonus
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Effective Jan. 1, OnePass members flying on unrestricted economy fares on Continental, Copa Airlines or Azteca Airlines will receive a 50% elite-qualifying mileage bonus.

Separately, through Mar. 31, Continental is extending its triple segments/points promotion that allows OnePass members traveling on unrestricted fares to earn up to 6 segments/points per roundtrip toward 2004 Elite status.

> More...

Continental Offers OnePass Business MasterCard
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Continental now offers a OnePass Business MasterCard issued by Chase.

The card, targeted at small- to medium-size businesses, allows designated employees to earn OnePass miles-for-charges in their own accounts, with a consolidated statement sent to the business owner.

There's a 7,500-mile bonus for new accounts.

Annual fee: $75 for the first card, $20 for each additional card. APR: Prime Rate + 8.99%, currently 13.74%, for Platinum MasterCard; or Prime Rate + 11.99%, currently 16.74%, for regular MasterCard.

> More...

Double United Miles Systemwide
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Mileage Plus members will earn double miles on any United or United Express flight worldwide booked for e-ticketing between Jan. 6 and Jan. 24 and flown by Apr. 4.

Once again: Double miles, any route, any published fare, any class of service.

Register by Jan. 24 at http://www.united.com/offer/mpd033, or by calling 1-800-447-6772, using offer code 657. Offer is valid for up to 10 flight segments.

United Offers Bonuses for West Coast Flights
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Between Jan. 7 and Feb. 11, Mileage Plus members will earn 2,000 bonus miles for roundtrips in first class (F) or full-fare economy (Y, B), or double miles for other economy fares (M, H, Q or V), on the following routes:

- San Francisco to/from Los Angeles
- Seattle to/from Los Angeles or San Francisco
- San Diego to/from San Francisco, Salt Lake City, Reno or Portland

Bonuses can be earned up to 3 times.

Register at http://www.ual.com/page/article/0,1360,1252,00.html.

US Air Shuttle Bonus, Guarantees Extended
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The extensive package of US Airways Shuttle bonuses and guarantees, originally scheduled to expire on Jan. 31, has been extended through Mar. 31.

The mileage offer allows members of United's Mileage Plus and US Airways' Dividend Miles programs to earn triple miles in both programs, simultaneously, for US Airways Shuttle flights.

The 5 "reliability guarantees" reward Dividend Miles members with 1,500 bonus miles if a Shuttle flight departs more than 5 minutes late; a $200 travel voucher if a Shuttle customer cannot get to the gate in under 20 minutes, or if a Shuttle flight is full; and 10,000 bonus miles if a Shuttle flight is canceled or 100,000 miles if a passenger is forced to board a Shuttle flight outdoors without a jet bridge. Guarantees are in effect for travel Monday through Friday.

To earn the Dividend Miles bonus, register at http://www.usairways.com/dm/7270, or by calling 1-800-872-4738 and entering bonus request 7270.

US Air Discounts SFO Awards
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US Airways Dividend Miles members can redeem fewer miles for award travel to/from San Francisco completed by Jan. 31.

During the promotion period, a roundtrip coach award is offered for 15,000 miles, and first class is 30,000 miles.

To take advantage of the offer, call 1-800-428-4322 and mention award code USZ945 for the discounted coach award, or USD945 for first class.

Saturday night stay required. Note: According to the fine print, this offer is available only to those who have elected to receive their statements via e-mail. It's a simple matter to sign up for e-mail statements on the US Airways site.

> More...

S T E A L S & D E A L S

Deal Alert from SmarterLiving.com
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This week's hot deals from SmarterLiving.com...

Europe Fare Sale from $208 R/T
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British Airways has announced a sale that includes discounted fares to over 40 destinations and a free 2-night stay in London when you buy tickets. Other airlines have matched these fares on selected routes.

Travel is available through Apr. 14, with the lowest fares valid for trips completed by Mar. 2. Book tickets at least 7 days in advance and by Thursday, Jan. 16.

> More...

Domestic and International Savings from $96 R/T
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Most major U.S. airlines have kicked off the New Year by offering huge long-term sales to domestic and international destinations, with savings on flights within the U.S. and Canada, and to Europe, the Pacific, and Latin America.

Travel within the U.S. and Canada requires a 14-day advance purchase. Book tickets by Monday, January 20, for travel through May 18.

> More...

R E A D E R R A N T S & R A V E S

This Week's E-mail Bag
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"I am an avid reader of the FF Crier and have read with great interest now that President Bush allowed us Federal Government employees to retain our frequent flier miles. I noticed that UAL was offering double miles on any published fare throughout their system, through Feb 2003. The one exclusion is that of government fares. Can you point this out in your newsletter... would be appreciated. I have subscribed all my fellow employees in a effort to keep them informed and maximize our return on FF miles."

- J. C.

"As a multi-year Platinum member I find the recent changes to elite qualifications both insulting and counter-productive. Delta has essentially informed me that my business is no longer "valued". It seems that a loyalty program should encourage me to use Delta, not to seek cheaper fares and more convenient schedules on other airlines. If my use of L or U class tickets is not beneficial to the company then they should not offer them (the point here is that these fares MUST be good for Delta or they would NOT offer them) I do not use L or U exclusively. I do, however, pay for my own tickets and thus take advantage of them whenever possible. I fly H, K, Q, and Y whenever necessary. Based on my past fare patterns I would only qualify as gold medallion. The benefits of this level are not adequate to compensate for paying more, flying extra segments, or flying inconvenient schedules.

"The message to me is "We don't care about your past loyalty or your future business. We only want the big spenders." The people who rate this move as "Good" must surely already being flying business or first (perhaps they don't have to pay for those tickets themselves.) Delta has certainly lost my business as well as that of my company and my family."

- John

"I don't know if you're aware but Delta has now changed the Medallion Program to EXCLUDE segments as a way to earn elite status! They also have decided that fliers have to buy High Priced tickets to earn status as well.. L, U, and other low fares only earn 1/2 the mileage toward elite status and K fares only earn actual mileage flown! You have to buy the REALLY overpriced tickets to get the "Bonus" miles that will "earn your status faster" as they say in their Propaganda! This is the biggest load of Garbage I've ever heard of! I hope enough freq flyers Bail out on them to put their sorry butts in Chapter 11! Grrr this has me really upset because I do not purchase my own tickets and have very little control over what fares are purchased. I can barely get them to buy K fares so I can upgrade on occasion! Be sure to change your "How to become a Medallion flyer" page as now Segments don't do it anymore. And help me spread the word that Loyal Delta Customers are about to get taken advantage of."

- Ronald

Until next week...