Fight AOL's Internet Tax

Please permit me a brief digression from the Crier's normal relentless focus on travel to bring to your attention a troubling development for readers and publishers of newsletters like this one.

As you may have heard, AOL and Yahoo plan to begin charging e-mail senders to insure their messages are delivered directly into account holders' inboxes.

While AOL insists that they will continue to deliver fee-free e-mail as they do now, industry experts predict that the quality of those delivery services will inevitably deteriorate as AOL and Yahoo concentrate on the more lucrative fee-based messages. I agree.

As a legitimate e-mail publisher, and a subscriber to many e-mail newsletters, I know as well as anyone how exasperating the problem of spam and e-mail viruses has become. But AOL's Internet tax is not the solution. What AOL is proposing won't deter a single spammer, and it's profoundly at odds with the guiding spirit of the Internet.

If you agree that this is bad for consumers, bad for the Internet, bad for the free flow of information, please join me and citizens of every political stripe in protesting AOL's misguided effort. Visit http://www.dearaol.com for more information and to sign the petition.

Thanks for helping to keep the Internet vital and viable!

Tim Winship
Editor & Publisher
FrequentFlier.com
"May Your Miles Never Expire"

Bankruptcy Watch

ATA is no longer on the list of airlines operating under Chapter 11.

Yesterday, Feb. 28, the Indianapolis-based discount carrier emerged from bankruptcy after more than a year of restructuring that left ATA smaller by every measure: routes were cut to more than a dozen airports, including its home base of Indianapolis; about half its 60-jet fleet was scuttled; and its workforce was trimmed from 7,000 to 3,000 employees.

The real key to ATA's future success, though, will be its close relationship with Southwest, which includes code-sharing and increasingly intimate frequent flyer program ties (see "Miles & Points" below for more on this).

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, PamC102 has a Frequent Flyer 101 question: "I'm new to this ff game. Could someone please explain to me how I use the partner alliance? Specifically, I have a ff account with USAir and have purchased a ticket on United. They both belong to the Star Alliance. How do I tell United to post my ff miles to the USAir account?"

Also in the "Airline Programs" Forum, fireblade_chick wonders whether the mileage game is worth playing: "I'm a UK resident moving to VA in a few months. I'm going to be hopping back and forth between VA and Europe a few times a year. After a year or so, my travel is likely to pick up regarding internal US flights. Is it worth my while signing up to a program? Particularly if I opt for a program credit card also."

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

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ATA Offers 1,000-Point Book-Now Bonus

ATA Travel Awards members who book a roundtrip ticket online at ata.com between Mar. 1 and Mar. 3, and complete travel by June 3 will receive a 1,000-point bonus.

Registration is required.

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ATA and Southwest Partially Link Programs

Beginning today, members of Southwest's Rapid Rewards program can earn credits for ATA flights, and ATA Travel Awards members can earn credits for Southwest flights. (ATA flights booked via an online travel agency cannot earn Southwest credits.)

In the 3rd quarter of 2006, ATA will become an award partner in Southwest's program, allowing Rapid Rewards members to redeem credits for ATA flights. (Anticipating unsustainable demand from Rapid Rewards members for ATA Hawaii flights, Southwest is already warning as follows: "Hawaii is a popular destination for ATA and seats for Customers traveling on an Award will be very limited. While ATA will make as many Award seats available as they can reasonably accommodate, demand from Rapid Rewards Members will likely exceed that supply. Members who plan ahead and are flexible with their travel dates will have the best chance to secure reservations.")

So far, there's no indication that ATA members will be able to redeem their points for Southwest flights. In other words, it's a slightly asymmetrical relationship.

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Thrifty Offers Triple Delta Miles

Between Mar. 1 and May 31, Delta SkyMiles members will earn triple miles (150 per rental) when renting a mid-size or larger car, for between two and seven days, from Thrifty Car Rental.

Qualifying rentals must be booked on www.thrifty.com using PC Code DLT6.

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Hyatt Will Reward Elites with Airport ID Cards

Hyatt will offer Diamond-tier members of its Gold Passport program Verified ID smart cards for use in airports with Registered Traveler programs later this year.

Registered Traveler allows prescreened travelers to receive expedited processing at airport security. Now available only at Orlando Airport, it will be rolled out at other U.S. airports in the coming months by Verified ID and other private companies.

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Midwest, Northwest to Link Programs?

According to a story in today's bizjournals.com, Midwest and Northwest will resume their reciprocal frequent flyer program relationship.

The two carriers participated in each other's programs until May 2003, when Midwest broke off the relationship, apparently in response to Northwest's aggressive capacity increases in Midwest's hometown market, Milwaukee. Since then, Northwest has reduced its Milwaukee presence although it remains a major player in the market.

The report anticipates that the new agreement could take effect as soon as today, but at press time, neither airline would confirm or comment on the story.

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Northwest Changes Award Terminology

Effective Mar. 1, Northwest is adopting new names for the two categories of WorldPerks awards, as follows:

The awards formerly known as Standard Awards henceforth will be known as PerkSaver Awards.

And what used to be referred to as RuleBuster Awards are now PerkPass Awards.

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Spirit Launches Mileage Program

As of today, Florida-based Spirit Airlines has its own frequent flyer program: Free Spirit.

On Day One, Free Spirit members have only one earning opportunity over and above Spirit flights: the Free Spirit MasterCard. To spur enrollments, cardholders who make at least one charge per month are rewarded with entry-level elite status.

Spirit promises that additional program partners are forthcoming, and that miles earned with any and all partners will count toward elite status.

Speaking of elite status, Free Spirit has no fewer than four elite tiers: Elite, A-List, VIP and Celebrity. (Non-elite status is wittily referred to as Somebody status, to differentiate program members from mere nobodies.)

Members earn between 50% and 300% of actual flown miles, depending on their status and the fare paid. So, for example, a member with Somebody status only earns .5 miles for every mile flown on discounted coach fares, while a top-tier elite member earns 300% of flown miles on unrestricted business-class fares.

Members will not be permitted to make award bookings until later this year. The program offers restricted (booked 21 or more days out) and unrestricted awards, beginning at 15,000 miles for a short-haul coach award and increasing to as many as 90,000 miles for an unrestricted business-class ticket to the Caribbean.

Addressing one of the key concerns of mileage program participants today, Spirit boasts that its program offers "award travel available on every flight, without blackout dates."

Free Spirit's mileage-expiration policy is complicated, illogical and consumer-unfriendly.. Miles expire after six months, UNLESS 2,000 or miles were earned during the previous six-month period. (The fact that a diagram had to be used to explain this policy should have nudged Spirit in the direction of a simpler policy.) But the miles of members who make at least one charge per month using a Free Spirit MasterCard never expire.

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Referral Bonus for Mileage Plus Visa

Mileage Plus members can earn up to 15,000 bonus miles for referring up to three new Mileage Plus Visa customers.

The bounty: 5,000 bonus miles for each referral who applies for a Mileage Plus Visa, is approved and makes a qualifying purchase.

The procedure: Referrals must call 1-800-571-7401 to apply for a card and mention the Mileage Plus number of the member who referred them.

Newly enrolled cardholders still earn whatever sign-up bonuses are in effect at the time.

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Deal Alert from SmarterTravel.com

1) Ireland Sale Fares on Aer Lingus from $310

Late-winter and early-spring flights to Dublin and Shannon start at $310 roundtrip with Aer Lingus' current sale. Departures are available from both coasts.

Travel at the lowest prices is valid through Mar, 31. Aer Lingus has not listed a booking deadline.

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2) Caribbean Fares on US Airways from $161

Flights to the Caribbean are on sale from US Airways. Prices start at $161 roundtrip for travel through early April.

Travel is valid through Apr. 6, and departure days vary by route. Book tickets at least three days in advance, and by Mar. 4. Fares require a two-day minimum stay, and the maximum stay is 30 days.

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Win a $50,000 Trip

Enter Conde Nast's "See the World" sweepstakes by Apr. 3, for a chance to win $50,000 to... well, see the world. In addition, 60 $100 bluefly.com gift certificates will be awarded during the sweepstakes period.

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

Feedback from the Frontlines of Travel

"As a business owner, if I purchase a ticket for my staff for a business trip is there a way to accumulate the FFM on behalf of the business vs. the individuals who are my employees?" [Alise K. - Columbus, Ohio]

[FrequentFlier.com replies - There's no formal mechansim to do so, no.

The major programs only allow members to enroll as individuals, so there's no way to collect employees' miles in a single business account.

If you want to bother with the paperwork, you could track your employees' business travel, and the number of miles they earn specifically on biz trips paid for by the company, and require that they redeem miles for biz travel when they've accumulated enough miles for free tickets.

Be aware, however, that implementing such a policy is virtually certain to have a negative morale effect. While your logic -- that miles earned for travel on the company's budget belong to the company -- is unimpeachable, the vast majority of companies allow their business travelers to retain their miles, at least partly in recognition of the fact that biz travel is a hardship. The miles are considered well deserved extra compensation.]

"My brother just tried to fly United with his family last Saturday out of Boston. He was going to Tucson, not sure if it was a direct flight. He was flying his whole family on miles, and was to stay in the Tucson area for the week.

"When he got to the airport they said the flight was canceled because of mechanical difficulties. They told him 'go home' you won't be flying today. He protested vigorously but the best they could do was an afternoon flight the next day with 2 extra layovers, so he ended up canceling the family vacation, defaulting on the hotel.

"The weird thing was everybody in line with him (also protesting) was flying on miles. They haven't refunded his miles yet, saying it will cost him an extra $100." [Jen]

[FrequentFlier.com replies - Under the circumstances in question, United certainly should waive the mileage redeposit fee. Be polite but firm.]

"You wrote in the Feb. 22nd edition of the Flyer Crier: 18 Destinations in Asia for $1,299 - With Cathay Pacific's All Asia Pass, you can fly roundtrip from the U.S. or Canada to Hong Kong and visit 17 other destinations in Asia for as little as $1,299. Travel is valid through May 18, and from Aug. 21 through Dec. 1; travel from May 19 through Aug. 20 costs an additional $350.

"Well, unfortunately as much as Cathay Pacific is one of my favourite airlines, this is obviously a no deal. After SARS, the All Asia Pass was originally as low as $699.00. That was less than 5 years ago. I see a near 100% appreciation in cost. Back during the $699.00 days, the fuel surcharge and higher taxes and fees also didn't exist. Also, the All Asia Pass does not earn any frequent flyer miles, and add the fuel surcharges (which, in my opinion is just down right illegal for any company to do), higher taxes and higher fees, we are looking at a credit card company's dream: a maxed out account. Although popping on any aircraft at nearly anytime is great to do like it should be even in the USA, it is still not as inclusive as it wants to be made to look.

"All Cathay Pacific really has to do is push me as a partner, on the side, to become a rich fat cat, and I'll be happy to pay $14,000 RT on a monthly basis for First Class from the USA to Hong Kong for the rest of my life." [Al from Boston]

Until next week...