The Bankruptcy Beat

February will be a banner month for bankruptcies, with two airlines shedding the protection of Chapter 11.

First, today United exits bankruptcy after more than three years, the longest-ever stay in Chapter 11 by a U.S. airline.

And ATA, which declared bankruptcy in October 2004, has received the go-ahead to exit bankruptcy and is on track to do so by the end of the month.

While United's press release boldly proclaims "United Exits Bankruptcy as a Strong Competitor Committed to Continuous Improvement," the airline's future is anything but assured. Among the more vocal naysayers is Joe Brancatelli, whose assessment is as follows: "United will fail again because it has no heart, no identity and no definable brand. It has none of the vision and discipline that separates the winners from the losers in the skies."

What Brancatelli sees as lack of focus is actually a key component of United's strategy: to segment the market and offer services tailored to those individual segments. The danger is that by trying to be all things to all people, United will overly dilute its chances of succeeding with anyone.

(Speaking of market segmentation, look for United's new 60-second business travel ad this Sunday, during the Super Bowl halftime broadcast.)

And a milestone of a different sort, perennial customer and investor darling JetBlue posted a loss for the 4th quarter of 2005, the first loss since the carrier went public in 2002.

More worrisome: JetBlue projects a loss for the current year as well, resulting from continued high fuel costs, price competition, and expansion-related expenses.

Say it ain't true, JetBlue!

Media Query

Does your company collect the frequent flier miles you earn from your business trips or do you know of a company that doesn't allow its employees to retain the frequent flier miles for personal use?

If so, please email Washington Post reporter Keith Alexander at alexanderk@washpost.com.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, hest is weighing his program options: "I live in Philadelphia so I travel a lot on USAir. I have like 10,000 Mileage Plus miles and no USAir miles. Is one program better than the other? I care more about Elite treatment than miles/awards. Is there a risk of getting all of my Star Alliance miles on a member that does not hub in my home city? Any talk of USAir leaving the Star Alliance?"

Also in the "Airline Programs" Forum, roadrunner has run into a roadblock: "Anyone have experience trying to get a 1st Class Award ticket using American AAdvantage miles on Qantas? I'm working nearly 330 days in advance, and Qantas seems to have NOTHING but coach seats. Has that been others' experience as well?"

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

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American Cuts Online Booking Bonus

With a notable lack of fanfare (we missed it entirely), American reduced its online booking bonus for coach flights beginning Dec. 15, 2005.

Under the new policy, coach bookings made on AA.com will earn a maximum of 500 bonus miles (250 for the first two flight segments). First and business-class bookings continue earning the 1,000-mile bonus.

Before the change, all roundtrips booked online earned the same 1,000-mile bonus.

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Conrads Offer Triple Miles

Through Mar. 31, members of the programs of 21 airline programs can earn triple miles for stays at 19 participating Conrad hotels.

To receive the bonus, quote Promotion Code DM when booking.

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Double Delta Miles to Europe

Through Mar. 31, SkyMiles members will earn double miles for flights between Cincinnati and Amsterdam, Paris, Rome, Frankfurt, and London.

Registration is required.

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Hertz Offers Bonus Airline Miles

Through Apr. 30, members of participating airline programs can earn an additional 500 miles from Hertz on qualifying Leisure Weekend Rate rentals of two or more days, plus save $5 per day, or earn 500 additional miles on qualifying Leisure Weekly Rate rentals, and save $20. Offer is valid on rentals of any car class, including Minivans and Sport Utility Vehicles, at participating locations in the U.S., Puerto Rico or Canada.

To earn the bonus and receive the discount, cite Promotional Coupon #959372 for Leisure Weekend Rate rentals, or #959383 for Leisure Weekly Rate rentals.

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Bonus Rapids Reward Credits for PeoplePC Service

Southwest Rapid Rewards members will earn four credits for establishing a new PeoplePC Online ($10.95/month) or PeoplePC Online Accelerated ($15.95/month) Internet access account.

Credits are awarded after the third month of service.

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TripRewards Doubles the Rewards

Through May 3, TripRewards members will earn double points or airline miles for up to four qualifying stays at Days Inn, Ramada, Super 8, Howard Johnson, Wingate Inn, AmeriHost Inn, and Knights Inn hotels in the U.S. and Canada or any Travelodge hotel in the U.S.

To qualify for the bonus, stays must be booked online at triprewards.com or one of the participating hotel brand's own websites.

There's also a 250-point bonus for booking stays online.

Registration is required.

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Earn 5,000 Bonus Miles with United Cruises

Mileage Plus members who book a qualifying United Cruise by Mar. 31 for travel to the Caribbean or Mexican Riviera any time during 2006 will earn 5,000 bonus miles per cabin.

To qualify for the bonus, cruise must be seven or more days in a balcony cabin or suite.

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US Air Gets Tough on Expiring Miles

Sometimes it's not a policy change that irks frequent flyer program participants, it's a newfound resolve to enforce an existing policy.

That's the case with US Air's decision to begin deleting miles in the accounts of inactive Dividend Miles members. Specifically, accounts with no activity for the past three years or more are being targeted.

The three-year mileage expiration policy has been the standard among major airlines, including US Air, since 1999. What's new, and startling to some Dividend Miles members, is that the airline has begun playing by its own rules.

No doubt this comes under the heading of "housekeeping" in preparation for the upcoming merger of Dividend Miles with the America West FlightFund program.

Like miles in other major program, the life of US Air miles can be extended another three years from the date of any mileage accrual or redemption. So there's no good reason to allow miles to lapse.

No mileage-earning activity on the horizon? Redeem as few as 300 miles for a magazine subscription. That will give your miles a fresh lease on life, and give you a year's worth of reading material.

Don't dally on this. US Air will begin deleting expired miles on Feb. 15.

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Deal Alert from SmarterTravel.com

1) AirTran Fares from $39 Each Way

AirTran is offering sale fares for travel through late May. Prices start at $39 one-way, and destinations include Atlanta, Boston, Las Vegas, and Miami.

Travel at the lowest prices is valid Tuesdays, Wednesdays, and Saturdays through May 24. Book tickets at least 10 days in advance, and by Feb. 14.

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2) Hawaii Fares on Hawaiian from $298

Travelers departing from the West Coast can take advantage of Hawaiian's winter fares. Prices start at $298 roundtrip, and destinations include Maui and Oahu.

For most routes, travel at the lowest prices is valid through Mar. 15. Travel at the lowest prices for the Los Angeles route is valid through Feb. 14. Travel to/from Maui is valid through Mar. 9. Hawaiian has not listed a booking deadline.

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Win a Trip to Britain, Dinner with a Duchess

Enter VisitBritain's "So British" sweepstakes by June 30 for a chance to win a trip for two to Britain, including business class air from New York to London Stansted, three nights at the Waldorf Hilton Hotel, and dinner for two with the Duchess of Rutland and two nights in The Manner Arms, Knipton.

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

Feedback from the Frontlines of Travel

"Don't know if you've read McCartney's latest [in the Wall St. Journal], but the subject is the government's "Registered Traveler" program. As portrayed, it looks like a complete joke, like something Trey Parker of Southpark might have created. Let's see, pay us $100, send 10 copies of your finger prints, and a bunch of personal data. We'll give you our secret Smart Card, and let you stand in a line over here instead. Could just picture Cartman talking the idea through.

"If the article has the details correct, Registered Travelers wouldn't get any benefits except a shorter line. Sounds like a toll road in airport form." [Glenn]

"I received a notice informing me that my Dividend Miles must be used for Magazine Awards, otherwise they will be forfeited. Is this true? I can't possibly use all of my accumulated miles (18,500) to obtain magazines! Will I loose all of my accumulated miles? If this is the case, I certainly will chose another airlines the next time I travel." [Terrel G.]

[See story in "Miles & Points" above.]

[The following is in response to Michael G.'s comment in last week's Crier that frequent travelers were abandoning Diners Club not because of the loss of major airline partners, as we'd suggested, but because Diners had collapsed its 60-day billing cycle to 30 days.]

"FYI this is inaccurate. They still have 60 day billing. (At least my corporate card does.)" [Shannon]

[The following regards our report in last week's Crier that Hawaiian Airlines is now offering mileage awards on a one-way basis.]

"Re Hawaiian offering 1 way awards... British has had this option for a while at a slight premium (instead of 60k for roundtrip, 32.5k for 1 way )." [Unsigned]

Until next week...