The Bankruptcy Beat

The possibility of a merger between Delta and Northwest, both currently in bankruptcy, got a new lease on life from no less a personage than Norman Mineta, Secretary of the Department of Transportation. Mineta mentioned the possibility in a recent speech in Shanghai. It's not clear whether Mineta had access to privileged information or if he was just engaging in speculation. Neither Delta nor Northwest addressed the merger scenario head-on, but insisted their focus remains reorganizing their respective companies.

The DOT chief also predicted that United and Aloha Airlines would emerge from bankruptcy protection in February.

The judge overseeing Northwest's bankruptcy on Tuesday granted the airline an extra six months in which to formulate a restructuring plan. During that "exclusivity" period, the bankruptcy court will consider only reorganization plans initiated by Northwest management; thereafter, plans from Northwest's creditors -- likely to conflict with management's plan -- receive consideration as well.

In the past week, Northwest's flight attendants and pilots unions have threatened to strike if current negotiations do not lead to satisfactory agreements and the airline imposes wage cuts and, in the case of the flight attendants, hires non-U.S. attendants for overseas flights.

Meanwhile, the judge presiding over Delta's bankruptcy proceedings has taken a two-month leave of absence. Before departing, the judge let it be known that she thought Delta pilots' salaries were "hideously high" and further opined that, "What's really weird is that anyone agreed to pay them that much money to begin with."

Mileage Pro -- Free Standard Shipping

Through Jan. 31, "Mileage Pro - The Insider's Guide to Frequent Flyer Programs" is available with free standard shipping within the U.S.

To receive the free shipping and handling, enter promotion code DGD5MY on the "Buy" page, and press the "Recalculate" key to apply the discount.

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FrequentFlier Forum Topics

As always, there's plenty of activity on the FrequentFlier Forum.

In the "Airline Programs" Forum, mehera1 is accumulating miles for an award trip to Europe. But she's concerned that her plans will be derailed by the airline's onerous capacity controls on award seats. "If people can't use these miles as they dream of doing--why are we all concentrating on accumulating them; on entering the promotions; on using the annual fee airline credit card? Am I missing something?" Encouragement and good advice follow.

Also in the "Airline Programs" Forum, jpetrylak's eforts to book an exit-row seat on Northwest's website have come to naught: "My wife and I are traveling for a longer trip and we are both very tall and would love to have an exit aisle seat. I am afraid to wait until day of flight to acquire from NW counter. It seems that some people have somehow bypassed the system to grab such a seat. How can I do the same?"

And much more. Questions, answers? Post them to the Forum!

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Alaska Discounts Winter Award Travel

Between Jan. 10 and Mar. 15, Mileage Plan members can save 5,000 miles on coach-class award travel on Alaska Airlines or Horizon Air between San Francisco, Oakland, San Jose, or Sacramento and any cities in Washington, Oregon, Idaho, and Colorado. With the discount, awards are priced at 15,000 miles instead of the normal 20,000. (The discount is not available between Feb. 17 - 20.)

Discounted bookings must be made online at alaskaair.com.

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Hilton Announces Reward Category Changes

Changes are in store for Hilton HHonors members. According to Hilton:

"Effective June 1, 2006, the HHonors hotel reward category for over 900 Hilton Family hotels will be changing. Reward reservations made prior to this date for reward stays at these hotels will be honored at the hotels current HHonors reward category. After June 1, 2006 when members redeem HHonors points for reward stays at these hotels the new reward category will apply. A list of hotels and their new reward categories will be available at the start of 2006."

We'll keep Crier readers abreast of the changes as details become available.

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Independence Air Award Travelers Face Policy Patchwork

If you were to take Independence Air's website at face value, the status of unused iCLUB award tickets issued by the now-defunct carrier is clear: "Trips booked using award points are eligible for the same congressional mandated obligation described above in terms of being accepted by other airlines for stand-by travel."

But that either ignores or overlooks the fact that the congressional mandate in question never explicitly addressed the question of frequent flyer awards, effectively leaving it to the discretion of individual airlines.

Unfortunately for consumers, who might reasonably expect consistency on this issue, airlines have chosen to exercise their discretion differently.

As reported last week, US Airways will not honor iCLUB award tickets on a space-available basis, for a $50-per-leg fee, as they do for paid tickets in accordance with the congressional mandate. Their logic: iCLUB members earned their tickets by being loyal to Independence Air, not to US Air.

United, on the other hand, will treat award tickets and paid tickets alike. The implied logic: since Independence Air ticketholders are being accommodated on a space-available basis, the $50 charge is incremental revenue whether the payee originally purchased her ticket with cash or miles.

American has a two-part policy. They will not allow award ticketholders to travel on American at the $50 rate. But they can take advantage of American's offer to waive advance-purchase requirements when purchasing a new ticket for confirmed travel.

For the first week after Independence closed its doors, Southwest flew stranded award ticketholders on the return leg of their trip (but not the outbound leg) for no charge. As Southwest put it: "It's just the right thing to do."

The policy fragmentation means that in the short term, travelers holding iCLUB award tickets will have to check with other carriers to confirm their award tickets' status.

Longer term, Congress and the Department of Transportation owe it to the traveling public to get the regulation right. Leaving in place the current ambiguity regarding award tickets is indefensibly sloppy. This time, relatively few travelers are affected. But if a Big Six airline were to shut down, tens of thousands of award travelers would be left at the mercy of other carriers. And as the demise of Independence is proving, airlines' concept of mercy is wildly variable.

Marriott to Reduce Mileage-Earning Rate

In an e-mail dated Jan. 11, 2006, Marriott Rewards members were advised that, beginning Apr. 1, they will earn two miles for every dollar spent at Marriott, JW Marriott, and Renaissance hotels and Marriott Vacation Club International. That's a full 33% decrease from the current three-points-per-dollar earning rate for members electing to receive miles instead of points.

The one-mile-per-dollar earning rate at Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites, and Fairfield Inn hotels remains unchanged.

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Priority Club Reduces Earning Rates

Effective Jan. 27, Priority Club Rewards members will earn fewer points and miles at some InterContinental Hotels Group brands.

For stays at Candlewood and Staybridge Suites hotels, members will earn five points or one airline mile for every eligible dollar spent, versus the current rate of 10 points or 2.5 airline miles.

And at Holiday Inn, Holiday Inn Express and Crowne Plaza hotels, members will earn two airline miles per dollar (with those airlines which offer variable earnings), down from the current rate of 2.5 miles per dollar spent.

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United Promotes Denver Flights

Between Jan. 11 and Dec. 31, Mileage Plus members can earn credits redeemable for free flights, bonus miles and other awards when flying from or to Denver on tickets costing at least $150.

Earn one credit for every qualifying flight segment that begins or ends in Denver, and double credits through Apr. 11 on flights between Denver and Baltimore, Chicago (Midway only), Las Vegas, Oakland, Phoenix, Portland (Oregon), Salt Lake City, San Diego and Seattle.

Four credits can be redeemed for 4,000 Mileage Plus miles or a Hyatt $100 Off two-night stay Certificate; eight credits are worth 8,000 bonus miles or two 500-mile upgrades; and so on, up to 32 credits which are redeemable for 90,000 bonus miles or a free business-class international ticket.

Registration is required, either online (link below) or by calling 1-800-447-6772 and entering promotion code 875.

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Deal Alert from SmarterTravel.com

1) Southwest Sale Fares from $49 Each Way

Southwest's first sale of 2006 features each city the airline serves, including Austin, Las Vegas, and Orlando. Sale fares start at $49 one-way, and are available for travel through early June.

Travel is valid from Jan. 27 through June 9. Book tickets at least 21 days in advance, and by Jan. 23.

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2) 6-Night London Trips from $479

EuropeASAP has discounted London packages for winter travel. Prices start at $479. This offer includes roundtrip airfare from the U.S. to London, six nights at the Fairway Hotel, daily breakfast, and all hotel taxes and service charges.

Travel is valid on select dates through Mar. 12. Book by Jan. 19.

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Win a $10,000 Trip from Travelocity

Enter Travelocity's Go Anywhere sweepstakes by Feb. 15 for a chance to win $10,000 in travel credit on Travelocity, good for a trip for four people to three destinations.

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[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]

Feedback from the Frontlines of Travel

"Thanks for the tip on the Juniper card - I was about to sign up for the BoA card (losing my silver status next month). I went and reviewed the info on the new Juniper card and it looks like a better deal than the BoA card for at least the first 2 years, assuming MasterCard/Visa difference is irrelevant. BUT I didn't see anything on Juniper like the "Unlimited Space Available Upgrades for Purchase" perk that the BoA card has. I've never tried to do this, so can you tell me if that's actually a perk I should look for, or if I can get the same result another way? Of all the perks, it's probably the one I care least about (unless it's a long or bad flight, I'm too cheap). I'm really after any way to keep the preferred check-in/boarding and ability to get an exit row seat that silver status got me. Heck, if they'd just offer me the opportunity to buy silver status, I might go for it, but the credit card seems the closest thing.

"Thanks for the site and newsletter - it makes flying a bit better!" [MJ]

[FrequentFlier.com responds - The Juniper-issued US Airways card does not offer the upgrades (500-mile space-available E-Upgrades cost $50 each) available with the Bank of America Visa Signature card. Best guess: US Air decided that was too generous a perk and withheld it when negotiating the benefits package for the Juniper card.]

"I haven't flown AA since January, 1998, in part for the restrictions in their FF program and minimal leg room in domestic first class. Even then, the "signature chef" meal service in business class from Buenos Aires to New York was inedible. Fortunately, the seats reclined so I could sleep it off.

"As to BA, at least they fly non-stop to London from West Coast cities. AA never has, and most likely never will.

"AA does have nice shiny planes on the outside, however." [Ed N.]

"On the Sunday after Thanksgiving my daughter flew back to college in Philadelphia from Fort Lauderdale on US Air. Her coach ticket was purchased well in advance, and her 5:40 PM seat was secure. As you might imagine, it was standing room only on all flights at that particular time on that particular date.

"Her 5:40 flight was overbooked and US Air offered her a free ticket if she'd take the 7 PM flight. Bright girl that she is, she jumped on the opportunity. They also told her that the 7 PM flight looked full, and that if it turned out to be overbooked they would offer her two MORE roundtrip tickets if she would take the 6 AM flight the following day.

"Since her brother and I planned to stay in Fort Lauderdale another two days, and realizing that she would still make her first class on Monday, she wisely concluded that this was an offer that she couldn't refuse.

"Not wanting to miss the chance to give up her 7 PM seat, my daughter told the gate agent that she was able and willing to be bumped, and then sat down in the seat closest to the desk. Trying not to interrupt the agents, she made frequent eye contact and smiled; least they forget about her.

"She paid attention to the activity around the gate, and was encouraged with the arrival of standby passengers and frequent flyers looking for upgrades. As boarding time approached anxious standby passengers grew fretful.

"One passenger finally lost his temper and barked to the agent "if you don't get me on this flight you won't have a job tomorrow!" He must have thought that would help. My daughter stood up, smiled broadly at the irate passenger and said, "I really wouldn't worry; I for one have already given up my seat and I'm sure the agent will get you on the flight just as soon as you let him take care of the other passengers." Grumbling, the man returned to his seat. The ticket agent mouthed a "thank you" to my daughter.

"Everybody who wanted to get on that flight was eventually issued a boarding pass, including the angry passenger. To her disappointment my daughter was also handed a boarding pass. The disappointment did not last long though, because she was seated in first class! Even better, the captain came out of the cockpit, found my daughter, and thanked her for her help with the upset flyer.

"Moral of the story: Be nice to gate agents and they will take care of you." [Lucy C.]

"I really enjoy reading the Crier. One thing that really bugs me though, is that most of the contests are open only to US residents. I happen to live in Ontario, Canada but virtually all my travel is in the U.S. So every time I see the contests, I start to dream of winning some fantastic trip and then I read the rules only to crash to earth again because it is open only to US people.

"Well, I probably know you can't do anything about it, but it does bug me and I just wanted to sound off!!" [Don W. - Canada]

[Following up on his rant in the Dec. 21 issue regarding Northwest service, Dale informs us that he never received a reply to his complaint from Northwest, but did receive 4,000 "Customer Relations Bonus Miles" in his WorldPerks account.]

"I must say I appreciate the Miles. But I am not sure that is solved the problem of the RUDE attendant, nor did it answer the original questions.

"Does Executive Management of Northwest share the same views as the people they hire?

"Or will this get pushed aside as just another complaint from one of those people that have really no say in how we do business?" "Or better yet, I wonder what happened to this and anything anyone else sent to NWA that day?

"Thank you to the person who read the E mail and gave me the miles. But what's next?

"Thank you all for listening, and have a Happy New Year.

"I think your publication contains the most informative and up to date info about what is really happening out here." [Dale B.]

Until next week...