Bankruptcy Watch

Kirkland & Ellis, the law firm which helped steer United through bankruptcy, has submitted the bill for its services: $99.8 million. The firm had as many as 300 lawyers working on United's behalf over a three-year period, one of whom billed $782 an hour, according to an analysis of the expenses by the Wall Street Journal.

While Kirkland's are the highest of the bankruptcy-related expenses incurred by United, they are by no means the only such costs.

Perhaps in anticipation of its own staggering future legal fees, bankrupt Northwest Airlines has decided to go where no other airline has dared to go before, charging a $15 premium for select aisle and exit-row seats booked within 24 hours of departure (36 hours for WorldPerks elite members).

While Northwest touts the "choice and comfort" of so-called Coach Choice, it's hard to see the move as anything other than cynical money-grabbing by an airline which might be better served by striving to increase customer satisfaction than by increasing fees. The surcharge is likely to be deemed especially onerous by Northwest's most profitable customers -- those purchasing walk-up fares -- since they already pay a hefty premium over advance-purchase ticketholders.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, pwallas (who characterizes himself as "Chairman's Preferred at US Airways, but no one at AA") wants to regain his elite status with American: "I missed requalifying for AA Gold by a few miles, was offered the opportunity to buy Gold status for several hundred dollars, but declined. Has anyone recently been offered an AA elite qualifying challenge? I wonder if they have substituted the 'buy status' offer and no longer offer challenges?"

And in the "Hotel Programs" Forum, Constant Traveler is trying to make sense of the buy-or-use-points question: "From a hotel use standpoint, what is the value of an SPG [Starwood Preferred Guest] point? Where is the cut-off where it is better to pay for a room than to redeem? Current example: Pay $116/night or redeem 3,000 points. I would argue, spend 3,000 points. Another example: Pay $250/night or redeem 10,000 points."

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

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American Offers Elite Threshold Bonuses

Taking a page directly from United's playbook, American is offering elite-level AAdvantage members who meet certain performance thresholds special awards which do not require the redemption of miles.

Current Executive Platinum members who earn 125,000 or more elite-qualifying miles or points during 2006 will be given their choice of two one-way systemwide upgrades, a one-year Admirals Club membership, 20,000 AAdvantage bonus miles, or AAdvantage Gold status for a companion.

Current Platinum and Gold members have to log 75,000-99,999 and 40,000-49,999 elite qualifying miles or points respectively, during the same time period, to earn a choice of somewhat more moderate awards, including bonus miles and upgrades.

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Delta Adds Scenic Air as Mileage Partner

SkyMiles members can now earn miles for flights on Las Vegas-based Scenic Airlines, which offers air tours of the Grand Canyon.

Members earn between 500 and 6,000 miles, depending on the duration/cost of the tour. To earn miles, SkyMiles members must book with Scenic and cite their SkyMiles number when making reservations.

Scenic is an earning partner only. Miles cannot be redeemed for Scenic award flights.

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Frontier Restricts Unrestricted Awards to Elites

In a novel move, beginning next month Frontier will only offer unrestricted awards to elite members of its EarlyReturns program. Here's the announcement:

"Starting April 1, 2006 EarlyReturns Plus -- any available seat redemption -- will no longer be available to Base members.

"This will be an exclusive benefit for Ascent and Summit members."

While high-priced unrestricted awards are an unfortunate byproduct of the airlines' refusal to make adequate seats available at restricted levels, they're a fact of travel life. Depriving non-elites of access to them simply devalues an already weak program.

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Earn Double Hilton Points in the U.K., Ireland

Through Apr. 30, HHonors members will earn double base points and get a 20% discount for stays at Hilton hotels in the U.K. or Ireland booked 21 days or more in advance.

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Coming to a Mall Near You: Midwest Miles

Beginning this summer (exact date TBD), Midwest Miles members will be able to earn miles for shopping online at the Midwest Miles Mall. The Mall will feature a range of retailers, including SkyMall, Casio, Frontgate, Hammacher Schlemmer and Sharper Image.

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Double Northwest Miles at Pan Pacific Hotels

Through May 31, WorldPerks members will earn double miles for stays at participating Pan Pacific hotels of two or more nights booked online at panpacific.com.

Participating hotels:

• Pan Pacific Bangkok - Thailand
  
• Hotel Sari Pan Pacific Jakarta - Indonesia
  
• Pan Pacific Sonargoan Dhaka - Bangladesh
  
• Pan Pacific Kuala Lumpur - Malaysia
  
• Pan Pacific Kuala Lumpur International Airport - Malaysia
  
• Pan Pacific Manila - Philippines
  
• Palau Pacific Resort - Palau
  
• Pan Pacific Singapore - Singapore
  
• Pan Pacific Whistler - Canada
  
• Pan Pacific Vancouver - Canada
  
• Pan Pacific Yokohama - Japan
  
• Pan Pacific San Francisco - United States

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United Extends Bonus for Economy Plus Access

Previously scheduled to expire on Feb. 28, United has extended through June 30, 2006, the 5,000-mile bonus for purchasing any of three available Economy Plus packages, as follows:

For an annual fee of $299, Mileage Plus members who purchase Economy Plus Access will be able to book coach seats for themselves and a traveling companion in the Economy Plus section, which features as much as five extra inches of legroom.

For $699 a year, program members receive Economy Plus Access and a 12-month membership in United's Red Carpet Club airport lounges.

And for $749, members get Economy Plus Access bundled with Premier Fast Track, which awards Premier elite status after 15,000 miles or 15 segments flown on United or Ted during the subscription period (versus the normal 25,000 miles or 30 segments).

For our assessment of Economy Plus Access, see the Aug. 3 newsletter.

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Hertz Offers Double United Miles and an Upgrade

Through May 31, Mileage Plus members will earn double miles, plus a two-car upgrade, on qualifying Leisure Weekend Rate rentals of two or more days and Leisure Weekly Rate rentals.

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Deal Alert from SmarterTravel.com

1) Bermuda Fares on JetBlue from $129 Each Way

JetBlue recently announced its next international destination: Bermuda. To promote the new route, the airline is offering one-way sale fares to Hamilton starting at $129 from New York, and $139 from connecting cities in the eastern U.S.

Service to Bermuda begins May 4. JetBlue has not listed an end date for the sale prices, or a booking deadline.

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2) Central America on Taca from $382

Flights to Central America are on sale from Taca. Prices start at $382 roundtrip, and destinations include cities in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.

Travel is valid through June 15. Taca has not listed a booking deadline. Fares require a three-day minimum stay, and the maximum stay is 120 days.

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Win a 7-night Royal Caribbean Cruise

Enter American Airlines' "Ultimate Surf Destination" sweepstakes by Apr. 30 for a chance to win one of six seven-night Royal Caribbean cruises for two, including air. Other prizes: three four-night cruises for two; one custom surfboard with roundtrip air for two to any domestic surfing destination.

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

Feedback from the Frontlines of Travel

"We take a cruise once in a while and need air to get to the ship, but we sail home on that ship. My wife heard that some of the FF miles can be used for a one way ticket, It that TRUE and which ones?

"We wasted a return ticket from Buenos Aires to Miami a couple of years ago...." [TG]

[FrequentFlier.com replies - A few airline programs, such as those of AirTran and Hawaiian Airlines, allow members to redeem fewer miles for a one-way award ticket. But the great majority of programs only offer roundtrip award tickets. So in a sense, yes, you're being forced to overpay if you're only flying one way. (The same illogic applies to paid advance-purchase tickets, which also are sold only on a roundtrip basis.)]

"One thing that should be mentioned is that Citibank PremierPass credit card mentioned by Ralph H. [in last week's "Rants & Raves"] is that it has a $75 annual fee, at least according to the app I received in the mail as part of a prescreened offer. BTW, there is a toll-free number on that form informing me that all of us can opt out of prescreened offers from this and other companies... 888-567-8688... no more having to pull out the applications from this type of junk mail to shred them." [Dave P. - Redwood City, CA]

Until next week...