Issue #32  --  February 18, 1999

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MileNet Bows Out
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Thanks to M.E. for the heads-up on the demise of MileNet, an interesting but ultimately flawed program occupying the fertile intersection of loyalty marketing and the Internet.

First M.E.'s note, followed by the MileNet notice-to-members:

>As I thought would unfortunately happen, MileNet has ceased operations.

>When I first heard about this program, I downloaded it and tried it out. Even though our company has a 64k leased line, I could not keep connected to the MileNet server; it would always time out or lose packets during transmission, thus making the counter reset to zero. It took only a few days of useage for me to come to the conclusion to delete this software from my computer.

>While this pyramid scheme was a good idea, the implementation was premature; obviously the two entrepreneurs who thought up this scheme were overwhelmed, which was apparent by the lack of valid e-mail address and contact information. But moreover, their downfall was caused by a lack of server bandwidth. They should have been sitting on a T1 or T3 backed by a HP server in order to deliver to over 30,000 people running this small program.

>Better luck in the future.

M.E.

>From: Zen & Andy
>Subject: MileNet Service Shutdown

>Dear MileNet user:

>It is with great regret that we write to inform you that MileNet will be shutting down its service indefinitely upon the distribution of this email. Below we'll explain why we've reached this difficult decision, and how you >can redeem the miles you've earned on MileNet.

>Since we launched MileNet in early November, about 30,000 people have downloaded and used our software to earn frequent flier miles by keeping MileNet on their desktops and sending it to friends. While many of you have praised our concept, we know that it's often been difficult or impossible to access our server due to overwhelming demand. Over the last few months we worked hard to finance infrastructure improvements, but we finally realized that such financing will take more time that we hoped.

>Rather than continue to provide such inconsistent service, we'll be shutting down indefinitely and return if and when we have the resources we need.

>To redeem the miles you have earned on MileNet, please go to http://www.milenet.com/redeem.htm and redeem your miles ON OR BEFORE MIDNIGHT (Pacific Standard time) on FEBRUARY 27, 1999. There you'll be able to redeem the miles you've accrued. ***After February 27, you will no longer be able to redeem miles.***

>Please keep the following in mind when you redeem your miles:

>-Be ABSOLUTELY certain that the account number you enter for redemption is your AIRLINE PROGRAM ACCOUNT NUMBER. For American this is a 7-character string of letters and numbers. For Delta, this is a 10-digit number. If your number is incorrect, we cannot credit miles to your frequent-flier account.

>- We've lowered the minimum redemption to 1 mile, and if you had less than that you'll find your account has been bumped up to 1 mile.

>- You can only redeem the integer portion of your mileage amount. For example, if you have 3.2 miles, you can redeem 3 miles.

>- If you had not previously selected an airline, your account has automatically been set to American. If you had previously chosen Delta, you can redeem your miles on Delta in full. (Low inventory of Delta miles prohibits us from accepting any more Delta accounts).

>- Please allow about 8-10 weeks for the miles to appear on your airline's statement (most of that delay, by the way, is on the airline side, not ours).

>Again, to redeem the miles you've earned, please visit our redemption area at http://www.milenet.com/redeem.htm and redeem your miles ON OR BEFORE February 27, 1999.

>>From all of us at MileNet, we sincerely apologize that we were not able to deliver the service quality you expected.

>Zen and Andy
>MileNet Inc.
>www.milenet.com

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Miles for Train Travel
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Effective February 1, 1999, Alaska Airlines' Mileage Plan members can earn mileage credit while traveling on Amtrak's Coast Starlight, Amtrak Cascades, the Capitols, San Joaquin or San Diegan routes. Earn a minimum of 150 miles on short trips, and as many as 2,000 miles for a monthly commuter pass or for a room on the Coast Starlight.

Amtrak offers a relaxed and leisurely way to avoid the hassles of driving, an easy way to go between the Pacific Northwest's major cities, and a romantic way to travel the entire coast. The Coast Starlight travels daily between Seattle and Los Angeles, offering breathtaking views of Washington, Oregon and California. While on-board, members will enjoy fine wine, gourmet meals, first class sleeping accommodations and superior service.

Frequent schedules serve dozens of destinations in Northern and Southern California. Members can relax or work in comfort en route to their destination aboard the Capitols, San Joaquin and San Diegan. All trains offer snack, sandwich and beverage service and the San Diegan offers roomy Custom Class seating.

Amtrak Cascades serves the Pacific Northwest's major cities, showcasing some of the most spectacular scenery the Northwest has to offer. The Eugene-Portland-Seattle-Vancouver, B.C. route pampers travelers with fresh Northwest food and beverages, wide comfortable seats and Custom Class.

Amtrak passengers can also earn miles on the Chicago-Milwaukee run in the Midwest Express program.

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America West Upgrades FlightFund
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America West on Tuesday announced enhanced features and a new elite program for its frequent flyer program, FlightFund. A new FlightFund image and logo debut in conjunction with the changes.

The new elite program, FlightFund Elite, offers members new benefits and replaces the current America West Chairman's Club program. The FlightFund Elite program includes new tiers with the addition of a third level -- Silver, Gold and Platinum -- as well as unlimited, confirmed First Class upgrades, discounted Top Value awards and the ability to qualify for Elite status by actual mileage or segments flown. The 1999 FlightFund Elite program begins March 1, 1999 and continues to February 29, 2000.

FlightFund members qualify for the Platinum level at 75,000 miles or 90 segments and receive a 125 percent elite mileage bonus for every mile flown. To qualify for the Gold level, FlightFund members must fly 50,000 miles or 60 segments and earn 100 percent elite mileage bonus miles, and 25,000 miles or 30 segments qualifies members for the Silver level and allows for a 50 percent elite mileage bonus. Qualification can be achieved by flying on America West Airlines, America West Express, Continental Airlines, Continental Express and Continental Micronesia flights.

Following are highlights of the 1999 FlightFund program effective April 1, 1999 unless otherwise noted:

    -- Effective June 1, 1999, Mileage Award Certificates will no longer be automatically issued. Miles will be banked in the members account until redeemed and FlightFund miles will not expire as long as the account shows activity in the last 36 months.

    -- The mileage required for award travel to Mexico and Alaska has been lowered. The minimum mileage required for travel to Mexico is now 25,000 miles and to Alaska, 20,000. Additional miles are required for awards to Mexico that include segments on Continental Airlines.

    -- Peak domestic award travel between the 48 contiguous United States, Alaska and Canada will be introduced. For domestic travel during the months of June through August, the Coach Class Value Award redemption level will be 25,000 miles on America West and Continental Airlines. Domestic Value Award travel at all other times will continue to be 20,000 miles for Coach Class travel.

    -- America West's partnership with Continental Airlines has expanded to include Continental Micronesia offering additional opportunities to earn and redeem miles in the Mid and South Pacific.

    -- Members can now upgrade to first class for one-way travel by redeeming less than the roundtrip mileage requirement.

    -- Members can now redeem miles for Business Class award travel on British Airways and Northwest Airlines for select international destinations.

    -- New members will receive a 2,500-mile bonus after the first flight.

>> More <<

America West online

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Kiplinger's on Discount Travel
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Thanks to J.B. for passing along this reference to "Fly in Style Without Paying the Price" by Lynn Woods on Kiplinger's Personal Finance site.

Some of the same advice you've heard here, so they're on to something.

>> More <<
Kiplinger's article

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ClickRewards does Business-to-Business
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Advertisers will benefit from Adauction.com's recent venture with
Netcentives. Adauction.com (www.adauction.com) will team up with
Netcentives' (www.netcentives.com) ClickRewards Shopping Network to
offer frequent flyer miles to advertisers who purchase advertising
inventory regularly. Executives at Adauction.com say this marks the
first time a business-to-business e-commerce company joins ClickRewards.
The incentive and loyalty program will reward media buyers with
ClickMiles that can be redeemed for frequent flyer miles from several
airline companies.

This is how the program works: media buyers and advertisers can earn
one ClickMile for every $10 purchase with Adauction.com. For example,
executives say that an advertising lot of 300,000 impressions selling
for $8 CPM, at a total cost of $2,400-would earn 240 ClickMiles for
the buyer.

"We have established a very loyal base of advertisers and media buyers who deserve to be rewarded for choosing regularly buy through our channel," says David Wamsley, Adauction.com's president and CEO. "Our customers will instantly recognize the added value of ClickRewards, which has been a very successful program for other leading brands that work with Netcentives."

Adauction.com provides business-to-business e-commerce service for buying and selling media. Netcentives is a provider of marketing solutions for e-commerce.

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America West, Flight Attendants at Loggerheads
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America West and its flight attendants continue on a collision course, which will likely result in work slowdowns at best and, at worst, a strike with its inevitable flight cancellations and delays.

America West Airlines and the Association of Flight Attendants received a letter earlier this week from the National Mediation Board declaring negotiations between the parties have reached an impasse and the parties have been released into a 30-day cooling off period. The cooling off period begins at midnight tonight and expires at midnight March 19, 1999.

Under the rules of the Railway Labor Act, no job action can be taken during the 30-day cooling off period, but negotiations can continue. Any related work actions by the flight attendants may not occur until after the cooling off period expires.

In other words, management and labor feud; customers suffer. This is the same customer-be-damned scenario played out in Northwest's 1998 strike, and the recent American Airlines pilot sickout.

>> More <<
Web site

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TWA's Spring Discounts
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Trans World Airlines on Tuesday launched a sale on domestic and international fares for tickets purchased through this Friday, February 19th, 1999.

Offpeak domestic prices are discounted up to 48 percent off standard 21-day advance purchase fares. The sale does not apply to Israel or Saudi Arabia.

    Domestic sale fares require a 14-day advance purchase, and travel must be completed by June 10th, 1999. Internationally, travel must begin by April 30th, 1999, for Europe; by March 31st for Cairo; by April 27th for Caribbean points; and by June 27th for points to Mexico. Domestically, all travel must include at least a Saturday night stay and a maximum 30 day stay. Other restrictions and blackout dates may apply.

>> More <<
TWA online

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Midwest Express FA's to Vote on Union
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In yet another sign of increasing labor-management tensions throughout the industry, the Association of Flight Attendants, AFL-CIO, filed a petition late yesterday with the National Mediation Board (NMB) calling for a union representation election for flight attendants at the Milwaukee-based airline, Midwest Express.

AFA filed the petition for the election after receiving signed union authorization cards from an overwhelming majority of the airline's more than 350 flight attendants.

"A union is the only way for us to gain a voice in our jobs and to improve working conditions," said a veteran Midwest Express flight attendant who has flown for the airline for nearly 10 years. "Our airline is profitable, but we are receiving very little recognition for the value that we bring to our employer day in and day out," she said. The flight attendant chose to remain anonymous fearing retaliation by the company.

Growing numbers of non-union flight attendants are showing an interest in gaining a voice in their workplace. At Midway Airlines, flight attendants chose AFA as their bargaining representative by a wide margin late last year.

A large majority of Delta Air Lines' flight attendants also want a union, according to a telephone poll of the workers conducted for AFA.

AFA represents more than 44,000 flight attendants at 23 airlines.

>> More <<
AFA's website

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Rants & Raves
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In the spirit of recent airline humor...

Received the following, forwarded by J.B. from Mike, who apparently pens this, The Thirstday Edition of The Dogpatch Moonshine Gazette, regularly.

>Good Mornin' Y'All!

>Well, it's Thirstday and that means a travel day for me again. Sometimes I think the Airlines are kinda like the old carnival husksters: "Hurry! Hurry! Hurry! Step right up and get your ticket!! You too can see the 7 wonders of the world! Or at least your luggage will! Come see us fit six people were five can sit with comfort! See the barfing baby! Experience the thrills of having nine minutes to get to a gate a mile from were you landed! We'll shake ya! We'll bake ya! We'll freeze your ass off! Come find what it is like to to have your ears turn inside out as we raise and lower the air pressure from sea-level to Mt. Rainier to sea-level in mere minutes! "

>When I used o go camping with the Padre in the mountains and the deserts of California I got a watch that measures air pressure and a bunch of other stuff. One of those Casio 47 function jobs. We won't go in to what possessed me to buy this sucker, except to say it has all kind of neat dials and gadgets and stuff (I can hear Deb saying "A Boy and his Toys.....") Anyway, I have found a good use for it. It does measure perceived altitude by way of the current air pressure. Now when I first got this doo-hickey I noticed that the airlines ran us at about the same air pressure as we would find on a 6,800 mountain. A mite thin, but no problem as most of us don't start getting any ill effects from high-altitude until about 7,400 feet. I can always tell when Deb and I get into the high country out west as Deb starts turning green at 7,200 and gets rather sickly above 7,500 feet. (It was interesting to see her reactions taking her from Durango to Silverton on one trip - two passes over 10,000 and one over 11,000 feet) ('Course it took me three days to peal my fingers from the grip I had on the old truck) - But back to my point. The last couple of trips I noticed I was getting a neck ache by the time we were back into the landing pattern. Sooo I strapped on the ol' camping watch and kept a eye on the pressure. Our friendly neighborhood airlines are now taking the air pressure up to the around the 8,000 foot level.

>The highest I have seen was Northwest at 8,400 and US Air at 8,200. Talked to a pilot for US Air that was at one of the parties and found out this is one more way for the airlines to save $$. I don't know about you, but for me I am registering a complaint every time I walk off a plane with a head or neck ache. Can you say "Class Action Law Suit?"

>Sorry about the diatribe. Still some of the old fire in me when I run into this crap. I understand the need to cut costs but the health and safety of passengers must come first. By the way, Gator-Food Airlines better know as AirTrans, and one of the cheapest fares across the east cost routes has yet to go above 6,500 feet.

>Go figure.

Until next week...