U P F R O N T
Newsbites - the Week In Travel
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<> Good News, Bad News from United
United, the poster child for on-the-ropes airlines, was again prominent among this week's newsmakers.
First, the world's 2nd-largest airline reported a $382 million loss for Jan., a bad start to a year which promises to get worse before it gets better.
Against that loss, a glimmer of good news: United's revised business fares, introduced on Jan. 6, are generating $20 million more per month than the previous prices, calming fears that lower fares would simply dilute revenue. Apparently, the cheaper "full" fares attracted enough extra customers to offset the discount, and then some. This could turn out to be a step in the direction of a new pricing model, which more rationally balances supply and demand.
Finally, Reuters reports that United is close to dismantling its employee ownership structure, in place since 1994. (At one point, United employees owned 55% of the company's stock.)
This will make a compelling business-school case study: does the failure of majority ownership by United's workers suggest that the employee-owner concept is fundamentally untenable; or did United's management spoil a good idea with bad execution?
<> CO-DL-NW Alliance Regroups
Elsewhere in the world of travel, Continental, Delta and Northwest have adopted a more conciliatory stance toward the DOT, which recently rejected the proposed alliance among the 3 carriers. Rather than proceed with the alliance over the DOT's objections, as originally threatened, the airlines will revise their proposal to address some -- but not all -- of the DOT's concerns.
This is much more than an arcane dispute between the meddling Feds and a belligerent private sector. With the carriers in question controlling 35% of the U.S. travel market, the proposed alliance would be the largest ever.
And it would launch SkyTeam, the Delta-led network, to the top of the global alliance heap, ahead of Star and oneworld.
On the upside, a successful alliance promises vastly increased earning and burning opportunities for members of all 3 carriers' mileage programs, as well as expanded lounge access, etc. On the downside (and this is DOT's concern), there's the worrisome prospect of collusion and its byproduct, higher prices.
O N S I T E
New On the FrequentFlier Forum
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Debra asks: "Can anyone suggest a credit card that is good with lots of airlines or sharing partner airlines?"
Paul reports on his 4-night award stay at the Paris Hilton.
Michele wants to know: "How can I best transfer all my rewards into Continental?"
Jon (who's 6'2") wonders: "Short of performing certain favors for the ticket agent, what's the best way to get a bulkhead or exit row seat?"
Questions, answers, comments? Post them to the Forum!
> More...
M I L E S & P O I N T S
Air Canada Doubles Miles for U.S.-Canada Flights
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From Apr. 1 to May 31, Aeroplan members will earn double miles for Air Canada flights on the following routes:
- Between Montreal and Chicago, San Francisco, or Los Angeles
- Between Toronto and Chicago, Dallas, Phoenix, Seattle, San Francisco, Los Angeles, or San Diego
- Between Ottawa, Winnipeg, Calgary, or Vancouver and Chicago
Booking classes J, C, Y, M, B, H, V, and Q are eligible.
> More...
New Mileage Card for U.S. Aeroplan Members
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Also from Air Canada: a new co-branded credit card for U.S. Aeroplan members issued by MBNA America Bank.
The Air Canada Aeroplan Platinum Plus MasterCard awards cardholders with 1 Aeroplan Mile for every $1 spent on eligible purchases.
New cardholders will receive 5,000 bonus miles after using the card for the first time, plus 2 Maple Leaf Lounge passes and an Air Canada Companion Certificate, good for a free second ticket when buying an eligible-fare Air Canada ticket for travel originating in the U.S.
At press time, neither the Aeroplan nor the MBNA site had been updated to include the new card, so you'll have to call Aeroplan (1-800-361-5373) or MBNA (1-800-932-2775) for further info.
Online Check-In Nets AAdvantage Bonus
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Through June 30, AAdvantage members can earn a 1-time bonus of 500 miles for checking in and printing a boarding pass online at http://www.aa.com.
Online check-in is available to AAdvantage members with an e-ticket from 12 hours to 1 hour prior to departure, on U.S. flights.
No registration required.
> More...
First Look: BA Modifies Executive Club
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From BA's website: "From 1 July 2003, we will be introducing new benefits and changes to simplify and improve the British Airways Executive Club."
We'll cover the changes in detail in an upcoming issue, but the most salient change at first glance is the new earning rate for discount economy: .25 miles for every mile flown. That's certainly not a benefit. Neither is it a simplification. Or an improvement. In fact, it may be a ticket to the Crier doghouse.
> More...
Hilton Offers 50% More Points
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Between Mar. 1 and May 31, HHonors members can choose to earn a 50% bonus on Base points instead of Points & Miles for HHonors stays.
Bottom line: you're earning the extra points in place of airline miles.
To participate, go to http://www.hiltonhhonors.com, enter your HHonors account number and PIN or username and password, and select "earn 50% bonus on Base points."
NWA Offers Bonus for Enrolling, Flying
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Between Feb. 1 and May 31, new WorldPerks members will receive up to 6,000 bonus miles for enrolling and flying.
Fly within 6 months of enrollment to earn 1,000 bonus miles for the first flight, and 5,000 bonus miles for the second roundtrip flight.
> More...
From United: Miles for Credit Watch
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Mileage Plus members can earn 1,000 miles when purchasing a 1-year subscription to the Equifax Credit Watch service for $69.95.
> More...
United-US Air Tie-Up Moves Forward
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On Mar. 1, Premiere members of United's Mileage Plus program began receiving elite treatment (priority boarding, dedicated check-in lanes, priority waitlist, access to special seat assignments) when flying on US Airways, and US Airways Dividend Miles elites began receiving similar treatment when flying United.
The next and final step takes effect on Apr. 1, when members of both programs can redeem their miles for flights on either airline.
Double US Air Miles for United Flights to Asia
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Dividend Miles members will earn double miles for flying United between the U.S. and Asia and the South Pacific, or between Asia and the South Pacific, from Mar. 1 through Apr. 11. Offer may be earned an unlimited number of times.
To qualify, register prior to travel at http://www.usairways.com/dm/2586.
Note - While the bonus is for United flights, double miles are only being offered to Dividend Miles members, not Mileage Plus members.
Ooops
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In last week's Crier, we listed the toll-free number for Priority Club Rewards in connection with the double-points-for-tax-payments offer from Starwood Preferred Guest. Our error.
The correct number to call for more information on this offer: 1-800-AXP-1000.
Also in last week's issue, we mentioned that membership in National Rental Car's Emerald Club had been closed for more than 10 years. More precisely, membership in the awards portion of the program has been closed. The Emerald Club itself remains open for business and is accepting new members.
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...
Coast-to-coast companion fares for $218
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United's latest sale fares will save you money on long-distance travel when you fly with a companion. Travel is valid to/from cities on both coasts, including Los Angeles, San Francisco, Washington, D.C., and New York, through Apr. 10. Book tickets online only, at least 7 days in advance, and by Monday, Mar. 10.
> More...
Sale fares to/from the East, Midwest, and FL from $88
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AirTran has released sale fares to/from cities in the East, Midwest, and Florida, plus Grand Bahama Island, for travel all the way through Sept. 9. American, Northwest, and US Airways have matched these fares on selected routes.
These are especially good deals because you can travel at low fares during the summer, when flights are typically more expensive. On most airlines, book tickets at least 7 days in advance and by Thursday, Mar. 6.
> More...
R E A D E R R A N T S & R A V E S
This Week's E-mail Bag
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"Contrary to the statement in the Feb. 26 issue of the FrequentFlier Crier that "travel and frequent flyer miles aren't life's highest priority," my co-workers and I, who travel extensively on the job, strongly disagree. Smooth and safe travel at the least expensive rate is TOP priority for us.
"And those "FrequentFlier Funnies" and FF info is the MAIN reason we subscribe to the FrequentFlier Crier.
"Please continue with all of your valuable and entertaining info."
- Sandra
"Just saw this in your newsletter. I worked and saved and scrounged for enough miles to send both of us to London on the Concorde for our QE2 cruise in December. Now, my husband may have the last laugh (please don't let it be). He thinks I'm nuts to go all ga-ga over an airplane.
"I didn't even take the "free air" on Cunard, so I can fly the Concorde. I have paper ticket in hand for December 12. Please give me good news that BA is not retiring the Concorde before that.
"Thanks for your time and your EXCELLENT newsletter."
- Gina
[As I replied to Gina, all we know at this point is that BA is rethinking the future of its Concordes. There's no word yet on whether or when they might be mothballed. To be safe, though, if you've always dreamed of flying Concorde, consider acting sooner rather than later.]
F R E Q U E N T F L I E R F U N N I E S
True (Funny) Travel Stories
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Dealing with a customer angry about ticket prices, the reservationist was not making any headway. The lady was upset and couldn't understand why she was unable to buy a ticket from San Diego to Seattle for $39. When the caller persisted, the agent finally said, "Ma'am, we're the ones with the Eskimo on the tail... not the dog on the side of the bus."
[FrequentFlier Funnies are true stories told by pilots, reservations agents and other travel industry professionals, reprinted with permission from William Joric's "Air Sick Humor."]
Until next week...
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