The Bankruptcy Beat

Northwest took a provisional step forward in resolving labor-cost issues this week, reaching a tentative deal between the airline and its ground handlers union. The agreement must next survive a vote by the union membership.

Negotiations with Northwest's pilots and flight attendants have stalled, leading to more strike threats by the two unions. The airline countered by warning that such job actions would be illegal and making a formal request to the bankruptcy judge that current contracts be voided.

Hoping to remain on track to exit bankruptcy protection next month, United will appear this week before the bankruptcy court, together with creditors and other interested parties, to seek final approval of its post-Chapter 11 business plan.

Among the issues still unresolved: a pension plan for flight attendants to replace the one United terminated; and a generous stock plan for 400 of the company's top execs. Regarding the latter, a union rep observed: "In medieval times, people guilty of this kind of greed would have been boiled in oil."

Delta meanwhile is extending its push southward, signaling its intent to launch no fewer than 12 new nonstop routes from the U.S. to Mexico by June. That's in addition to 35 new routes to the Latin America/Caribbean area Delta either implemented, announced or applied to serve during 2005.

And just to prove that airlines can operate efficiently and profitably, while maintaining good relationships with customers, employees and shareholders, Southwest today reported its financial performance for 2005: a $548 million profit. That makes 2005 Southwest's 33rd consecutive year of profitability.

How Diners Club Lost Its Mileage Mojo

Like the proverbial overreaching wunderkind, Diners Club Rewards had everything going for it -- including the industry's most complete list of major U.S. airline partners -- and let it slip away.

As we've reported, as of Jan. 1, Diners Club Rewards members can no longer redeem their points for miles in the programs of Continental, Northwest and US Airways. And United exits the program as of Apr. 17.

What happened? Read the whole story (our take, that is) here.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, sdavi3680 will be flying Qantas to Australia, and is considering the mileage options: "I am a newbie to FF miles. I am going to join a frequent flyer program I just don't know which one. I think I can join the British Airways program as they are a partner airline. Would this be better for me as I live in the UK? Do they both have similar earning potential?"

Also in the "Airline Programs" Forum, lasnowboardnguy finds reasons to prefer Alaska over American: "I am a AAdvantage platinum with American and gold MVP with Alaska, and while I like to earn the upgrades when flying AA (in lieu of listing my Alaska Mileage Plan number) I cannot tell you how frustrating it is to be charged $100 in fees for booking award travel last minute to spend time with an ailing family member. For all of you who were not aware, Alaska does not charge any fees other than the $5 for award tickets no matter how many days advance purchase you have. These rules apply to award tickets using Mileage Plan miles while flying American!!"

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

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Next Week: Tips from "Mileage Pro"

In next week's Crier, we'll be summarizing some of the best tips from the just published book, "Mileage Pro - The Insider's Guide to Frequent Flyer Programs," by Tim Winship and Randy Petersen.

Stay tuned.

Up to 36K Bonus American Miles for West Coast Flights

Through Feb. 15, AAdvantage members can earn up to 36,000 bonus miles for up to eight eligible roundtrips to or from California, Oregon or Washington on American, American Eagle or AmericanConnection flights. (See AA.com for a list of qualifying origin/destination airports.)

Registration is required.

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Eos Seeks Loyal Flyers

Eos Airlines, which recently launched New York-London (Stansted) services using a B757 configured to seat just 48 passengers (roundtrip tickets are $6,500), has unveiled its own loyalty program, Eos Club 48.

Members earn 15,000 points for every roundtrip flight. Each point is worth 1¢, so roundtrip earnings amount to $150, a 2.3% rebate.

Taking a page from the playbook of the travel-rewards credit cards, members may redeem points for travel on any airline, or for hotel stays or consumer goods.

Members who enroll and travel roundtrip before Mar. 31 will earn 80,000 points (15,000 base miles plus 15,000 bonus miles plus 50,000 account activation bonus miles).

Eos points do not expire.

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Le Meridien Triples the Miles

Between Jan. 1 and Mar. 17, members of the programs of eight airlines, including Continental and Delta, will earn triple miles for qualifying stays of three or more nights at Le Meridien hotels.

Registration is required.

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Northwest's 100K Mile Dash Promo

Through May 31, WorldPerks members can earn up to 100,000 bonus miles by... well, it's another of those NW promotions that attempts to be all things to all people and succeeds only in being confusing to everyone.

Basically, you earn points for various transactions with Northwest and WorldPerks partners; the points then convert to bonus miles. A nonstop flight on an unrestricted ticket, for example, earns 60 points. Online bookings or check-in net 10 points. Stays at WorldPerks hotels or rentals at car partners earn five points each. Conversions range from 500 miles for between one and 19 points to 100,000 miles for 2,500 or more points.

Plus, the three top points earners from each WorldPerks tier (non-elites and three elite levels) will receive additional prizes, ranging from bonus miles to free trips.

Registration is required.

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Northwest Offers Bonuses for Referrals

In yet another convoluted promotion, Northwest is offering WorldPerks members up to 20,000 miles for referring friends who complete qualifying transactions by May 31.

Bonus miles are awarded when up to five referred friends purchase tickets or check in on nwa.com and for Northwest or KLM-operated flights, with a maximum of 4,000 bonus miles per friend.

Registration is required.

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Points.com Offers Miles-for-Upgrades

Points.com members who upgrade to the paid Gold account for $49.95 per year have their choice of enrollment bonus miles/points from 23 different programs, including those of Air Canada, Alaska Air, American, Delta, Midwest and US Airways, as well as several non-travel programs. Monthly memberships are also available for $4.95, with fewer bonus miles.

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Earn Bonus Airline Miles for Hawaii, Tahiti Starwood Stays

Through Dec. 25, 2006, Starwood Preferred Guest members will earn triple miles in the programs of American, Delta, Northwest, or United miles and double miles in Continental's program for stays at participating Hawaii and Tahiti booked online. Stays booked via Starwood's call center double miles.

There are also 30-35% discounts on qualifying room rates, depending on which airline program the member belongs to and whether stays are booked online or not.

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Online Booking, Check-In Bonus from United

Between Jan. 1 and June 30, Mileage Plus members will earn up to 2,500 bonus miles per flight when booking and checking in online at united.com.

That's the standard online booking bonus of 1,000 miles, plus up to 1,000 additional miles for checking in online for two or more flight segments, plus another 500 miles for completing both transactions.

There's a maximum of 5,000 miles per member that can be earned during the promotion period.

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Deal Alert from SmarterTravel.com

1) Japan Fares on United from $398

United's winter Japan sale fares start at $398 roundtrip from the East Coast and Midwest, and $570 from the West Coast. Fares are available for travel to Nagoya and Osaka.

Departures are valid through Mar. 31. Departures to Osaka are valid Mondays, Thursdays, and Saturdays, and returns are valid Sundays, Tuesdays, and Fridays. Departures to Nagoya are valid Mondays through Thursdays. Book tickets at least seven days in advance, and by Jan. 24. Fares require a six-night minimum stay, and the maximum stay is 30 days.

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2) Cross-country on United from $198

In response to Southwest's new nationwide sale, United is offering cross-country flights from $198 roundtrip. Travel on the sale routes is valid through early March.

Travel is valid Tuesdays, Wednesdays, and Saturdays through Mar. 7. Book tickets at least 21 days in advance. United has not listed a booking deadline. Most fares require a one-night stay.

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Win a Trip for 2 to Ireland

Enter the IMA Fly Away Sweepstakes by Jan. 31 for a chance to win a trip for two to Ireland including air and five nights' hotel accommodation.

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

Feedback from the Frontlines of Travel

"I have found the "Free Companion Ticket" offered by American Express with their Delta SkyMiles Platinum Card to be useless. I live 45 miles from my principal/closest airport. To use the certificate you have to present it at the Delta ticket counter within 24 hours! To make a 90-mile round trip, plus parking and time off from work means the ticket is not free! In this day of electronic transactions, American Express is 15 years behind the times. Maybe it's time to switch to another travel card, since Delta is on the ropes anyway. Thanks for letting me vent!" [William J.]

"First, I am a regular reader of your newsletter and enjoy it very much. Thank you! "In October '05 I booked a March flight on JetBlue from JFK to Orlando and a return from Ft Myers back to JFK. A decent price of $867 for the four of us. With JetBlue having a sale I checked the same flight and noticed a $708 price. I contacted JetBlue customer service to see what I could do. My expectation was to pay a cancellation fee and hope I might get a few dollars back, if they would do anything. Within 5 minutes of calling customer service rep had canceled my earlier flights and re-booked the new flights plus put $159 in my TrueBlue account to spend on my next flight. He was a professional and very nice person and I look forward to many more flights on JetBlue." [Andrew S.]

Until next week...