U P F R O N T
The Dollars & Cents of Airline Survival
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The financial results are in for most of the largest airlines' 4th quarter, as follows:
4th Quarter
Profit/(Loss)*
Airline 2003 2002
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AirTran $22 $8
Alaska ($21) ($43)
American ($111) ($529)
America West $7 ($52)
ATA Due Feb. 2
Continental $47 ($109)
Delta ($327) ($363)
JetBlue Due Jan. 29
Midwest ($2) ($7)
Northwest $370 ($488)
Southwest $66 $42
United ($476) ($1,473)
US Airways Due Feb. 5
* millions
One has to question the fundamental viability of any industry in which a company can credibly claim that a $476 million quarterly loss is a good sign. But in United's case, given the magnitude of their financial difficulties, it's true.
In fact, with the exception of Delta, the trend overall is positive. The question is whether profitability can be achieved quickly enough to keep the marginal players from going under.
Speaking of going under, even as US Air denies a final decision has been reached to sell assets, at least 4 airlines have submitted bids to purchase various pieces of US Air's operation, according to Reuters. Both American and JetBlue have reportedly bid for US Air's Washington-New York-Boston shuttle service. (The prospect of JetBlue competing in the heretofore highly profitable shuttle market must give Delta the chills.)
<< O N S I T E >>
FrequentFlier Forum Topics
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As always, there's plenty of activity on the FrequentFlier Forum.
David relates a long frequent-flyer tale, the moral of which is: "(A)lways take the miles even if you don't think you will ever get more. You probably will." Michael wonders what's the best use of frequent flyer miles. Ronald has links to several lucrative travel sweepstakes. And much more...
Do you have questions, answers? Post them to the Forum!
> More...
<< M I L E S & P O I N T S >>
Alaska to Discontinue Paper Statements
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Effective Mar. 2004, Alaska Airlines will stop producing and mailing paper Mileage Plan statements.
If you're a Mileage Plan member and haven't yet signed up to receive e-statements, go to Alaska's website and do so. To be clear: there's no longer a choice -- it's either e-mail or no mail.
If you're reading this newsletter, you're obviously online and comfortable with the web and e-mail. Alaska's move assumes that all members of their program are similarly cyber-savvy. That's a questionable premise at best.
The new policy brings JetBlue to mind. In a self-proclaimed effort to minimize costs, JetBlue launched TrueBlue as a web-only program. So consumers knew the ground rules when they enrolled.
But Alaska's case is rather different. Members enrolled in the program with the expectation that they would be able to monitor their account activity, in a readily accessible medium. And suddenly, with a mere month's notice, Alaska unilaterally defines 'readily accessible medium' as e-mail, and only e-mail.
At the very least, this seems an uncharacteristically high-handed move on Alaska's part.
Mountain or mole hill? Let me have your thoughts at feedback@frequentflier.com.
Triple AAdvantage Miles for Loews Stays
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AAdvantage members will earn triple miles for stays of 3 or more nights at 3 new Loews hotels (Loews New Orleans, Loews Beverly Hills and the Don CeSar Beach Resort) between Jan. 4 and Apr. 11.
Offer applies to special Warm and Loews-y rates and other qualifying rates.
> More...
American, Mexicana to Link Mileage Programs
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In conjunction with a bilateral code-share agreement, Mexicana will become an earning and redemption partner in American's AAdvantage program, and American will do the same in Mexicana's Frecuenta program.
No start dates were announced, but Mexicana's relationship with United and the Star Alliance ends on Mar. 31, 2004, so the new tie-up should be in place soon thereafter.
Continental Offers Bonus for CO Flights
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Between Jan. 15 and Mar. 7, OnePass members will earn double miles for flights to Denver or Eagle/Vail/Beaver Creek.
Separately, the newly renovated Keystone Resort is offering special rates from $69 per night, including night skiing and other activities on date of arrival.
Register for the bonus using the link below.
> More...
Buy @ Bluefly to Earn Diners Club Bonus
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Through Feb. 29, Diners Club Rewards members will earn 10 points for every $1 charged at Bluefly.com, an online retailer of designer-brand merchandise. That's 5 times the normal earning rate.
Bonus will be applied automatically... there's no need to register or cite a promotion code.
> More...
Dollar Is New Frontier Partner
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Members of Frontier's EarlyReturns program may now earn miles for Dollar car rentals.
Normal earning rate is 50 miles per rental day at participating Dollar locations. But through May 31, members will earn triples miles (150 miles per qualifying rental day).
EarlyReturns members should cite promotion code FR3XM when booking to receive the triple miles.
Miles are subject to a "frequent flyer surcharge" of $0.50 per rental day, up to a maximum of $2 per rental transaction.
Earn Extra United Miles at OfficeMax
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Through Feb. 29, Mileage Plus members will earn 200 bonus miles for purchases of $200 or more at OfficeMax.com. The bonus is in addition to the 4 miles per $1 normally earned for OfficeMax transactions.
Follow the below link to insure the miles are credited for your purchase.
> More...
US Air Offers Extra Incentive to Buy Miles
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US Airways is offering businesses a 20,000-mile bonus when purchasing Dividend Miles for use as sales incentives and employee rewards by Mar. 31.
A minimum of 200,000 Dividend Miles may be purchased online through Dividend Incentives for $0.02 per mile plus tax and processing fee.
To register for the bonus, and for complete terms and conditions, see the below link.
(Dividend Incentives is separate from US Air's consumer miles-for-sale service, which sells smaller lots of miles for higher per-mile prices.)
> 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...
London Sale Fares from $198, Plus Hotels from $25/Person
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British Airways has announced a double-whammy of a good deal, with sale fares to London from $198 roundtrip coupled with London hotel stays from $25 per person.
For the lowest fares, travel from Feb. 3 through Apr. 4, and from Oct. 28 through Dec. 17; summer fares will be higher. Book tickets at least 7 days in advance, and by Thursday, Feb. 5.
> More...
Cross-country Fares from $158, Plus Hawaii and Mexico
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We've seen a flurry of great deals in recent weeks as small, low-cost airlines drop their prices and force their larger competitors to do the same. ATA has announced a fare sale with similarly good deals, and while the airline's website states that the low price is $118 roundtrip, we found that the best deals were for longer flights.
The sale includes cross-country flights starting at $158 roundtrip, as well as cheap flights to exotic destinations like Hawaii and Mexico. Travel to and from most destinations is valid from Feb. 3 through May 23. Book tickets by Monday, Feb. 2.
> More...
<< S W E E P S & F R E E B I E S >>
Win a Trip to Australia
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Enter Away.com's Australia Vacation Sweepstakes by Apr. 30 to win Qantas tickets for 2 to Australia.
Entries may be submitted online or via regular mail.
> More...
<< R E A D E R R A N T S & R A V E S >>
Feedback from the Frontlines of Travel
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"I am a big AirTran supporter for the past five years - over 60 segments in 2003. I just flew ATL/LAX this past weekend. Very friendly staff. Ryan's Airbus 320's OK, but not in great shape. It's a good thing AirTran is adopting XM on their flights this year - even if it's only audio. For shorter flights, who needs entertainment amenities, but four hours with no audio, video, or food (other than pretzels and drinks) is rather spartan. My wife really missed having a movie. I think AirTran will be smart to follow Jet Blue's lead on entertainment in flight.
"I'm A Plus Elite. I like it because I usually sit up front, and I accumulate flights somewhat faster than I did on Delta (most of my segments are in the east/southeast). They have good customer service, and even for utilizing the certificates, they don't have a "no waivers/no favors" policy that their competition has embraced. Of course, there's no Crown Room or meal amenities, but their smiling faces and "give you a break" attitude go a long way. Plus, I like a smaller plane that loads in 10 to 15 minutes - reducing delays. I don't know how many times I've been on a DL 757 or 767 has been at the gate still loading five to ten minutes after scheduled departure time - most recently during the Christmas holidays."
- Bob in Marietta, GA
Until next week...
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