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The FrequentFlier Crier - A weekly summary of travel news and opinion
 
Issue #187 -- February 27, 2002
 

CONTENTS

  • Oops!
  • Elite Treatment: Unfair?
  • New on the FrequentFlier Forum
  • The IRS Rules (& Rocks)
  • Southwest Adds Partner: EarthLink
  • AOL AAdvantage... Shrinking
  • US Airways Triples Miles for San Juan Flights
  • Double Alaska Miles for Hawaiian Air Flights
  • Up to 100K Bonus Miles with Cathay's Repeat Rewards
  • Deal Alert from SmarterLiving.com
  • Win Mega Miles from Continental
  • NWA Award Seats, Not!

U P F R O N T

Oops!
============

In last week's issue, we misprinted the link to V i r g i n Atlantic's "Lovin' London" sweepstakes. (Admin note - The spaces between the letters of Sir Richard's airline are necessary to bypass Big Brother. Otherwise, the screening software used by some ISPs will misidentify this newsletter as pornography, and block it. Interesting problem for the airline in question... having a name that, when used in an e-mail, triggers a porn alert.)

The correct link is here.

Apologies.

Elite Treatment: Unfair?
=======================

Between the Enron hearings and the FAA whistleblower story, it's been a highly entertaining news week, and one which puts me in mind of a popular hippie-era maxim: Question authority.

Another current news thread would also have us distrust authority, if we could just figure out who's in charge.

On Feb. 17, the Transportation Security Administration (TSA) assumed responsibility for security at most U.S. airports.

On Feb. 20, the TSA ordered the airlines to close down their express lanes for elite-level frequent flyers, passengers traveling on business/first-class tickets, and other special-status travelers. The new equal-treatment policy was predicated on "fairness" and the fact that all passengers pay the same security surcharge.

By Feb. 21, the airlines had restored the VIP lines, apparently with the blessing of the TSA, which had reconsidered and "clarified" its earlier policy directive.

While it's tempting to threaten a class-action suit for the pain and suffering caused by this policy whiplash, I'm not going to take the Feds to task for their waffling on the issue because, frankly I'm very much of 2 minds myself.

My pragmatic you-get-what-you-pay-for side says that elites and front-cabin customers have paid for a higher level of service, and deserve to get it. I don't begrudge a first-class passenger the extra legroom or priority boarding that come with his extravagantly priced ticket. Isn't expedited security clearance just an analogous extra?

But my principled we're-all-in-this-together side responds, with equal fervor, that when it comes to security, all passengers should be treated (in this case, inconvenienced) equally.

In the fullness of time, the right answer may be revealed to me. Hopefully in a flash of blinding light. For now, I'm conflicted.

Opinions...?

O N S I T E

New on the FrequentFlier Forum
==========================

Hal has earned enough miles for a Europe trip and is headed for Madrid. Vovchik provides a link to a no-purchase-necessary 1-million-mile sweepstakes. Brett is looking to maximize the mileage payoff for opening a Citibank account. 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

The IRS Rules (& Rocks)
==========================

The question of the tax status of frequent-flyer miles earned for business trips and used for personal travel rears its ugly head periodically. In the past, the IRS has suggested that, in the abstract, such miles are effectively part of an employee's compensation, and might be taxable as such. But there were thorny problems in the tracking, reporting and valuation of miles, and the IRS never forced the issue.

Since tax season is upon us, I checked with tax expert Eva Rosenberg (http://taxmama.com) for an update on the latest IRS ruling. Her response:

"We've all been holding our breaths, speculating whether IRS would impose their authority to tax business-generated frequent flyer miles. The concern wasn't so much about the instances where those miles were used for business travel. The real issue was, when the mileage was generated by business travel, but used for personal trips.

"Last week, in IRS Announcement 2002-18, IRS announced their decision to leave us all alone. So now, even if your employer paid for all those miles they are tax free for you to use."

Southwest Adds Partner: EarthLink
===========================

EarthLink is the latest addition to the Southwest Rapid Rewards program roster.

Rapid Rewards members who sign up for EarthLink service will receive 4 credits. If you sign up for all 3 Rapid Rewards-affiliated telecom services (MCI, Nextel, and EarthLink), you'll earn 10 credits.

Remember when Rapid Rewards had no partners? How things change. The current partner lineup includes First USA (Rapid Rewards VISA card), Alamo, American Express, Budget, Diners Club, Dollar, EarthLink, Hertz, Hilton, Hyatt, Marriott, Nextel and MCI.

Also praiseworthy: Rapid Rewards' "no capacity controls" policy. An award traveler has as good a chance of securing a seat as a revenue passenger has.

Where change is needed, conspicuously, is with the program's policy of expiring credits after a measly 12 months. That's an awfully unfriendly policy for an airline which strives so hard to be customer-friendly.

> More...

AOL AAdvantage... Shrinking
====================================

From the AOL AAdvantage website: "The AOL AAdvantage Rewards program has limited its earning offers to an exclusive opportunity through Opinion Place."

So, from an earning standpoint, AOL AAdvantage is nothing more than the core AAdvantage program, plus a miles-for-survey-taking feature, which isn't always available to all members.

For whatever reasons, this program hasn't lived up to what American and OAL initially boasted to be its potential. It's time for American and AOL to cut their losses and put the ailing program out of its misery.

US Airways Triples Miles for San Juan Flights
================================================

Dividend Miles members can earn triple miles for US Airways or US Airways Express flights to/from San Juan, between Feb. 14 and Apr. 15, 2002.

Register prior to departure by calling 1-800-872-4738 and entering promo code 8203.

Earn Double Alaska Miles for Hawaiian Air Flights
===================================

Members of Alaska Airlines' Mileage Plan can earn double miles for flights on Hawaiian Airlines between Mar. 1 and June 15, 2002.

Hawaiian serves 6 West Coast hubs with direct flights or connections to 6 Hawaiian Island destinations, as well as Tahiti and American Samoa.

Register prior to your first qualifying flight at http://alaskaair.com or by calling 1-866-604-3275 and entering promotion code 810119.

Up to 100K Bonus Miles with Cathay's Repeat Rewards
==================================

Until June 30, 2003, Cathay Pacific is offering first- and business-class passengers a chance to earn as many as 100,000 bonus miles for a single roundtrip flight to Asia.

This is a fly-more/get-more offer. For the 1st roundtrip between N. America and Asia, you'll earn 10,000 bonus miles; for the 2nd roundtrip, 25,000 bonus miles; and so on up to the 7th and subsequent roundtrips, which earn 100,000 miles each. There's a similarly tiered bonus-mile offer for Cathay's flights between New York and Vancouver which tops out at 40,000 miles for the 7th roundtrip.

You must pre-register for the Repeat Rewards offer by calling 1-800-882-8880 and entering promo code C-X-U-R-R (29877).

> More...

S T E A L S & D E A L S

Deal Alert from SmarterLiving.com
=================================

This week's hot deals from SmarterLiving.com...

Savings on Las Vegas Flights Starting at $68 R/T
---------------------------------------------------------
America West has released a sale on nonstop flights between Las Vegas and cities throughout the U.S. Travel is valid between Mar. 4 and June 14. Purchase tickets online only, at least 7 days before departure, and no later than 9 p.m. PT on Sunday, Mar. 3.

> More...

Fly to Frankfurt in April for $399 R/T
--------------------------------
Northwest has announced a sale on travel to Frankfurt, Germany, from selected cities in the Eastern and Midwestern U.S. Departure is valid between Apr. 1 and 23, and return travel must be completed by Apr. 30. All flights will connect via Northwest's new terminal in Detroit. Purchase tickets online only and at least seven days before departure.

> More...

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

Win Mega Miles from Continental
======================================

Sign up for AT&T WorldNet Service before May 14, 2002, to receive 2,000 OnePass bonus miles and a chance to win 1,000,000 OnePass miles.

> More...

[Other travel-related sweepstakes and giveaways are online at http://frequentflier.com/sweeps.htm.]

R E A D E R R A N T S & R A V E S

NWA Award Seats, Not!
====================================

Since you apparently have the forum for it, I personally would appreciate it if you would use your "soapbox" more to address the airlines' abysmal allocation of award seating on their flights (particularly NWA). I have repeatedly attempted to book award seats on NWA to no avail. Now NWA is going to raise their award level from 20,000 to 25,000 miles. I lose 25% (I hope my percentage is right - a math whiz I am not) of my substantial accumulated award mileage overnight due to arbitrary and capricious decisions by NWA relative to award levels and seat allocation. If a small-time company acted this way, someone would be crying, "Fraud."

- Maddog

Until next week...