U P F R O N T

Airlines Report 2001 Financial Results
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Just how bad was 2001 for the airline industry?

United, the country's second-largest airline, posted the worst loss ever, in the history of commercial aviation: $2.1 billion. The previous record loss for a single carrier was $1.2 billion, reported by Continental in 1990.

Other losses for the year: $1.7 billion for American, $1.2 billion for Delta, $2.0 billion for US Airways. The figures include the cash infusions from the government's post-9/11 bailout program, so as bad as the reported losses were, the real losses were even worse.

Trade group IATA (International Air Transport Association) estimated this week that losses for all airlines worldwide will total $15 billion.

Even as they release last year's dismal financials, many airlines are predicting a return to profitability in the first or second half of 2002. Let's hope those estimates are reality-based and not just wishful thinking or, worse, some Enron-like corporate campaign of obfuscation and disinformation.

O N S I T E

New on the FrequentFlier Forum
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Nancy suggests: "Earn 'Frequent Flower' Miles This Valentine's Day." Samepenny reports a sighting of AAdvantage certificates in Target. Sandy is looking for input on the Capital One mileage card. Ronald and Jean are, as ever, veritable founts of mileage news and suggestions. And much more...

Do you have mileage-related questions, answers, anecdotes?
Post them (and read others') on the FrequentFlier Forum.

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

Federal Employees Can Earn, Burn Frequent Flyer Miles
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From the General Services Administration website: "On December 28, 2001, the President signed into law S. 1438, National Defense Authorization Act for Fiscal Year 2002. Section 1116 of this law authorizes all Federal employees -- including members of the Foreign Service, members of the uniformed services, and their family members and dependents -- to retain promotional items, including frequent flyer miles, earned on official travel."

That's the good news. Buried at the bottom of the very same webpage, however, there's a troubling response to the question, "Are frequent traveler benefits taxable?"

"The Internal Revenue Service has indicated to GSA that these benefits may be taxable. GSA will provide additional information as we receive it from the IRS."

Does this signal that frequent flyer miles are back on the IRS's radar screen?

Stay tuned (with fingers crossed)...

Marriott to Gov't Employees: Come Earn with Us
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In the wake of the above-mentioned policy change, travel suppliers will be scrambling to establish new (or deepen existing) loyalty-program relationships with government workers.

Marriott is first out of the gate with an enrollment offer for federal employees, offering 2,500 bonus points when they enroll in the program and then stay with Marriott within 90 days.

To qualify for the bonus, use promotion code GOVD when enrolling at http://marriottrewards.com/enroll or calling 1-800-858-0897 before May 31, 2002.

Flowers for Valentines, Miles for You
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Time is running out to do something nice for your Valentine AND earn miles for yourself.

All airline and hotel programs have florist partners (FTD.COM, 1-800-FLOWERS, Calyx & Corolla, etc.), most of which award 10 miles for every $1 spent. Simply go to the website of the program you wish to earn miles in, look for the list of mileage-earning partners, and choose a florist.

And for the Florally Challenged...
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If flowers aren't appropriate, here are a couple of non-floral options for Valentine's Day giving...

> Ashford Gift Certificates from Hilton HHonors

Through May 30, Hilton HHonors members can redeem 40,000 points for a $100 gift certificate from Ashford.com, 75,000 points for a $250 gift certificate, 130,000 points for a $500 gift certificate and 225,000 points for a $1,000 gift certificate.

> More...

> Discounted Merchandise Awards from Marriott Rewards

Through Feb. 28, 2002, members of Marriott Rewards can redeem 10% fewer points on the program's 10 most popular merchandise awards from Skymall, featuring consumer electronics from Sony, Panasonic and Bose.

> More...

Air Canada Retracts Changes Amid Consumer Outcry
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Air Canada has taken its knocks for the overwhelmingly unpopular changes made to Aeroplan for 2002. Following the torrent of negative customer feedback -- including, notably, the website http://www.errorplan.com/ -- AC retracted some of the changes, including lowering the already paltry 50% mileage credit for some discount fares to a truly miserly 35%.

For the latest, check http://aircanada.com/aeroplan/

As a side note to all the turmoil, word is that Air Canada is planning to spin off Aeroplan as a separate company, complete with its own IPO. The changes are no doubt calculated to position the independent Aeroplan as a more rather then less profitable operation. Unfortunately, AC chose short-term profit over the best interests of its best customers, a sure route to our Hall of Shame.

Air Canada Offers Elite Members First-Flight Bonus
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Through Mar. 31, 2002, Air Canada is offering Super Elite, Elite and Prestige members 1,000 bonus Status Miles (which count toward 2003 elite status) for each of their first flights of the year a) within Canada, b) between Canada and the continental United States, and c) internationally.

Olympics Charges Earn Double SkyMiles
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Holders of the Delta SkyMiles credit card will earn double miles on all purchases charged to their cards in Salt Lake City and throughout Utah during the month of Feb.

Detroit Flights Earn 1,001-Mile WorldPerks Bonus
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Between Feb. 24 and Mar. 31, 2002, Northwest is offering WorldPerks members 1,001 bonus miles for every flight from, to or through Detroit.

Offer is valid for WorldPerks members residing in the U.S., Canada and Mexico. You must register for this offer at https://www.nwa.com/offers/nwg2002/using promotion code number 5013.

Frontier, National Add Miles-for-Charity
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Two smaller carriers have introduced miles-for-charity programs in the past week...

> Frontier
Members of Frontier's EarlyReturns program may now donate miles to their choice of 4 selected charities via Miles 4 Smiles by contacting the EarlyReturns desk at 1-866-263-2759 and requesting a transfer from their account to the Adoption Exchange, Colorado Wildlife Heritage Foundation, El Jebel Shrine or the National Coalition Against Domestic Violence.

There is a 1,000-mile minimum donation and Frontier will match every 4 miles transferred with 1 mile. E.g., for a 10,000 mile donation, Frontier will add an additional 2,500 miles to the charity's account.

> National
National Airlines has introduced Comps for a Cause, which allows members of the carrier's National Comps frequent flyer program to donate points to Miracle Flights For Kids, a Las Vegas-based organization that assists individuals and families with travel to medical facilities across the U.S.

National Airlines will donate 1 Comps Point for each donated Comps Point to Miracle Flights.

Donations can be made online at http://www.nationalairlines.com, or by mailing a request letter to National Airlines, Comps for a Cause, 6020 Spencer Street, Las Vegas, NV 89119. The letter must include: the donator's National Comps account number, the number of Comps Points to be donated (minimum of 50) and the account holder's signature.

Virgin Adds 2 Hotel Partners
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Members of Virgin's flying club can now earn miles for stays at Ian Schrager and Hyatt hotels. Stays at Hyatt Hotels & Resorts earn 750 miles; stays at Ian Schrager Hotels earn 500 miles.

To promote the new partnerships, double miles are offered between Feb. 1 and Apr. 30, 2002, for Hyatt stays, and between Feb. 18 and Apr. 20, 2002, for Ian Schrager stays.

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...

Half-Price Companion Fares to London
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British Airways has released a companion fare sale on winter travel to London between Feb. 4 and Mar. 21. Buy one ticket and receive a second fare for half price. Make reservations at least three days before departure and by Friday, Feb. 15.

> More...

'Spring Fever' Fares on Domestic, Int'l Routes
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United is offering a "spring fever" fare sale to destinations in the U.S., Europe, Latin America, and Asia. Purchase tickets online only and no later than Wednesday, Feb. 13.

> More...

S W E E P S T A K E S & F R E E B I E S

Citi Sweepstakes' Prize Is 1,000,000 Miles
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Enter the Citi "1,000,000 Miles" sweepstakes for a chance to win the grand prize of 1 million AAdvantage miles, and 8 weekly prizes of 100,000 miles. There's no purchase or application necessary to enter.

The Sweepstakes ends at 5:00 PM ET on Mar. 28, 2002, and is open to legal residents of the U.S. 18 years of age or older as of Feb. 1.

> More...

[Other travel-related sweepstakes and giveaways are online.]

Until next week...