U P F R O N T

Upcoming: 20th Anniversary
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We're fast approaching the 20th anniversary of frequent flyer programs (birthdate: May 1981), and the attendant hype and hoopla should be a welcome diversion from the otherwise dreary day-to-day of the travel biz.

Delta is first to announce its anniversary promotions (see "Miles & Points" section below), but it's a safe bet we'll see a plethora of special offers from many airline and hotel programs over the next 6 months.

Labor Discord Threatens NW Operations
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While the mileage picture looks bright, the service and dependability picture is a gloomy one.

If Northwest cannot hammer out an agreement with its mechanics, and if the Feds don't intervene to forcibly suspend a strike, Northwest's mechanics could strike as early as this coming Monday. Stay tuned to your preferred media for updates, or check NW's online labor update here.

There are also labor problems looming at the 3 largest airlines -- American, Delta and United.

O N S I T E

FrequentFlier.com--Bigger, Better, Faster
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Over the past week, we've made some back-end changes which position FrequentFlier.com both to perform better in the short term and to grow in the long term, as we add new content and functionality to the site.

Specifically, we have moved the website to a new server, which features faster processors, more memory and more disk space. And in concert with the hardware change, we upgraded to the latest version of the software supporting the FrequentFlier Forum. The changes should result in faster page-loading and, overall, a better experience for those visiting the site.

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

Ella is looking for a SkyMiles enrollment bonus. Roxanne wants to maximize her miles for an international car rental. Kathy asks (wisely) whether there's a formula for deciding between a mileage award and a revenue ticket. Samepenny wonders whether to upgrade her SkyMiles credit card. Cliff is looking to use Aeroplan miles to defray the costs of flying to the Philippines.

Do you have questions? Do you have answers? Post them to the Forum!

>> More - The FrequentFlier Forum

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

At Delta: 20 Million Mile Anniversary Sweepstakes
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As does the frequent flyer program phenomenon itself, Delta's program turns 20 this year, and the airline will mark the anniversary with a yearlong series of events and promotions for SkyMiles members and employees.

Beginning Mar. 5, SkyMiles members residing in the U.S. may visit http://delta.com/20years and enroll in one or more of Delta's e-mail programs to be eligible for the 20 Million Mile Anniversary Sweepstakes. Twenty Grand Prizes each worth 1 million miles will be awarded in random drawings Mar. through July.

Delta's e-mail program subscribers will automatically be entered in each monthly drawing. Four winners will be selected every month until July 20, 2001.

In addition to the sweepstakes and other promotions, Delta will end the year by donating a total of 1 million miles, or 200,000 miles each, to its 5 SkyWish charities: CARE, Make-A-Wish Foundation, Make-A-Wish Foundation International, The United Way of America and United Way International.

Cyberspace Meltdown Continues
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It was another in a series of ugly weeks in cyberspace, with EToys declaring bankruptcy, Yahoo's CEO stepping aside, and Napster down and close to out (you expected a business based on breaking copyright law to last how long...?).

Closer to the online rewards space, CyberCash, "The World's Leading Provider of Secure Electronic Commerce Payment," filed for Chapter 11 bankruptcy protection. And more relevant still, MyPoints' stock closed on Thurs. below $1, putting it in danger of being delisted on the NASDAQ.

The digital world isn't coming to an end. You'll still be able to buy Barbie online; peer-to-peer will persevere; and online rewards programs aren't barreling headlong toward extinction. But SOME of today's programs won't be with us tomorrow.

Let's be careful out there...

United Offers Miles for Same-Day Shipping
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United is awarding customers 1,000 frequent flyer miles to customers who book a first-time United SameDay shipment online at http://www.unitedsameday.com between now and May 31, 2001. Customers will earn an additional 500 miles per subsequent United SameDay shipment booked online during this period. In addition, all registered users will be entered into a drawing to win 2 round-trip business class tickets to anywhere United flies.

United SameDay offers same-day, door-to-door small package delivery services to businesses and individuals within the U.S.

AAdvantage Bonuses for O'Hare Flights, New Otani Stays
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AAdvantage members can earn double miles for travel on American Eagle service between Chicago O'Hare and Cedar Rapids, IA; Cincinnati, OH; Cleveland, OH; Columbus, OH; Dayton, OH; Des Moines, IA; Indianapolis, IN; Omaha, NE or Richmond, VA.

To qualify, purchase and travel on a published fare ticket between Mar. 5 through Apr. 30, 2001. You must register before flying.

Earn 1,000 miles for the first night at Hotel New Otani Tokyo, Osaka, Makuhari, Los Angeles, and Hawaii. If you are a New Otani Club member, you'll also earn 500 miles per night from your second night. Offer applies to eligible stays between May 1 and July 31, 2001.

Earn Triple FlightFund Miles for Alamo Rentals
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Through July 18, FlightFund members earn triple miles and receive a discount of up to 15% off retail rates when renting a compact car through a minivan, in the U.S. or Canada, for 4 to 14 days.

Request I.D. Number 649991 and Rate Code BN when making your reservation.

NW Launches Mexico Flights with Bonus
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To promote its new service between Memphis and Monterrey, Mexico, Northwest is offering 2,000 bonus miles for each roundtrip between Apr. 1 and June 30, 2001. Register here for the promotion at least 7 days prior to travel and no later than Mar. 31.

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...

London in March Starting at $173 R/T
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British Airways is offering sale fares to London for Mar. travel, with round-trip fares starting at $198 for midweek travel. Purchase tickets by Monday, Mar. 19 and at least 3 days before departure.

For more details, go here.

System-Wide Sale to/from the East and Southeast
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AirTran Airways has released a system-wide sale for travel through June 12. Purchase tickets by Tuesday, Mar. 20. Most major U.S. airlines have matched these fares.

For more details, go here.

I N D U S T R Y N E W S B I T E S

The TWA Saga (continued)
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On Wed., TWA's board recommended that American's buyout offer--now raised from $500 to $742 million--be approved over competing bids from, among others, corporate raider Carl Icahn and investor group Jet Acquisitions.

The final decision remains in the hands of the bankruptcy court judge. Look for a ruling as early as Fri.

For updates, and a pretty thorough preview of AA's plan to integrate TWA's operations into its own, check here.

Online Commissions (continued)
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We reported last week on the move by Northwest and KLM to withhold commission payments for ticket sales made through online outlets like Travelocity and Expedia. We were holding our breath in anticipation of other airlines' following NW's lead, but so far -- and this is itself newsworthy -- that hasn't happened.

In an unrelated move, Travelocity has stopped offering Southwest tickets. According to reports in the trade press, Southwest was unwilling to invest in the software infrastructure required to seamlessly link to Travelocity's reservations system. Henceforth Southwest's only online sales will be through its own website.

OAG Poll Profiles Frequent Flyers
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OAG has released results of its 2000 Reader Poll, profiling frequent flyers and their travel behavior. We've excerpted some of the frequent flyer program-related findings below. Following the table is a link to the full report on OAG's site.

                                      YEAR
                              2000           1999

  Number of Program Memberships
    Overall Avg.              7.0             6.5
    U.S. Programs             5.2             5.0
    Non-U.S. Programs         1.6             0.8

  Elite Programs
    U.S. Programs             1.3             1.3
    Non-U.S. Programs         0.5             0.2

  Miles Earned in Past 12 Months
    Average               117,000          96,000

  Difficulty in Claiming Award (if requested)
    No Problem                38%             35%
    Minor Problem             37%             38%
    Major Problem              9%             12%
    Impossible                 9%              9%
    Possible, but only
     with mileage surcharge    7%              6%

  Annual Number of Award Tickets Claimed
    Mean                      4.4             4.5

  Award Tickets Used for--
    Leisure Trip              90%             90%
    Business Trip             10%             10%

> More - Complete OAG 2000 Reader Poll

Until next week...