Bankruptcy Watch

The roller coaster ride continued over this past week, with industry prospects alternately soaring and plunging as individual carriers reported developments running the gamut from the hopeful to the bleak.

Most notable among the latter: Delta's raising (again) the prospect of bankruptcy.

In a filing with the Securities and Exchange Commission, Delta last week projected a "substantial" loss for 2005, citing high fuel prices, intense competition and excess capacity, and warned as follows: "If we are unsuccessful in further reducing our operating expenses and continue to experience significant losses, we will need to seek to restructure our costs under Chapter 11 of the U.S. Bankruptcy Code."

A warning was also forthcoming from Continental, which threatened layoffs and further pay cuts if new labor agreements were not approved by the end of this month.

Citing the same factors which could drive Delta to bankruptcy and Continental to shrink, Northwest first scuttled previously announced plans to increase domestic capacity by 2%-3% during 2005, predicting instead a decrease in domestic ASMs (available seat miles). This week, Northwest announced yet another change of plan: there will be no increase or decrease over 2004.

To be sure, these dire warnings cannot be taken at face value. Especially since 2000, such pronouncements have been deployed less as guidance for financial analysts and more as negotiating ploys, to signal to recalcitrant unions the seriousness of the carrier's situation and the inevitability of cost-saving concessions.

But the threat of bankruptcy remains real, as developments in Canada attest.

After a mere 32 months of flying, Montreal-based discount airline Jetsgo ceased operations completely on Mar. 11, stranding thousands of ticketed passengers. According to the airline's press release: "Given difficult market conditions resulting from competitive pressures in the Canadian airline industry, Jetsgo has determined that, in the circumstances, it is prudent and responsible to discontinue its operations and ground all of its planes."

Saving the good news for last, there are signs of life from an unlikely source, US Airways.

Republic Airways (which, somewhat ironically, owns Chautauqua Airlines, a US Air feeder carrier) and Wexford Capital agreed to invest $125 million in bankrupt US Air, raising hopes that the airline can survive long enough to regain profitability.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, regionalrep comments as follows on elite upgrade availability on Northwest flights: "I have noticed on here and waiting in the gate that everyone seems to be rejected the first class upgrade most of the time. I always hear the announcement 'To all elite members first class has checked in full.'"

Also in the "Airline Programs" Forum, shamrock poses the following question on award redemption: "I'm hoping to take a 2 week trip to Europe next year. If I call 331 days in advance and successfully book the outgoing portion, will they let me put that reservation on hold for another 2 weeks to see if the return date comes up?"

In the "Contests & Sweepstakes" Forum, Ronald provides links to a slew of travel-related sweepstakes.

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

More: http://frequentflier.com/forums/index.php

Your Vote Counts

We're working on several polls to gauge reader sentiment on important travel-related issues. For now, the featured poll is designed to help consumers get their arms around the problem of award availability. How difficult is it to redeem miles for award tickets to desirable destinations? Which airlines do a better job, and which do a worse job of meeting the expectations of their members?

Weigh in with your experience. And see what fellow travelers have to say about theirs.

More: http://frequentflier.com/ffp-vote.htm

AirTran Doubles Indianapolis, Charlotte Miles

AirTran A+ Rewards members will earn double credits for AirTran flights booked at http://www.airtran.com to or from the airline's newest destinations, Indianapolis and Charlotte, and completed by June 30.

More: http://www.aplusrewards.com

Alaska Doubles Miles to Dallas

Mileage Plan members will earn double miles for flying Alaska Air's new Seattle-Dallas flights between July 19 (launch date) and Aug. 31.

Registration is required.

More: http://alaskaair.com/www2/Promo/Registration/PromoEntry.asp?pid=AS0507

American Offers Double Miles for LAX-JFK Flights

AAdvantage members will earn double miles for roundtrip New York-Los Angeles flights booked by Mar. 21 and flown between May 1 and May 25.

Bonus may only be earned once.

Register at https://aa.com/apps/netSAAver/ViewAAdvantageBonusOffers.jhtml, promotion code JFKLA.

Best Western Bonus at H&R Block

Members of Best Western's Gold Crown Club Int'l will earn 200 bonus points for first-time tax prep at H&R Block, 75 points if they're returning H&R Block customers. The bonuses for elite GCCI members are higher: 225 and 100, respectively.

More: http://www.goldcrownclub.com/offers/HRBlock1-05.pdf

Spring Bonuses at InterCon Group Hotels

Through May 31, Priority Club Rewards members will earn bonus points for stays at selected InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Staybridge Suites and Candlewood Suites hotels in the U.S., Canada and Mexico.

Participating properties and offers are listed on the IHG website.

More: http://www.ichotelsgroup.com/

Triple Southwest Credits for Budget Rentals

Rapid Rewards members will earn triple Rapid Rewards credits -- 1.5 credits instead of the standard .5 credits -- on qualifying rentals of 5 or more days between Mar. 10 and June 15, with a Saturday stay over.

Enter BCD # U072712 in the Corporate ID/Rate Code field when booking at http://southwest.com or http://budget.com; or call Budget at 1-800-527-0700.

TAP Portugal Is New Star Alliance Member

On Monday, TAP Portugal became the 16th member of the Star Alliance. Among other ramifications of the tie-up, members of TAP's Victoria Frequent Flyer Programme can now earn and redeem miles in the programs of all other Star Alliance carriers, and vice versa, and are eligible to receive elite benefits across the Star network.

Other Star airlines: Air Canada, Air New Zealand, ANA, Asiana, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, Thai Airways, United, US Airways and VARIG.

More: http://www.staralliance.com/star_alliance/star/frame/main.html

Double US Air Miles for L. America, Caribbean Flights

Through Apr. 30, Dividend Miles members will earn double miles for US Air flights between Ft. Lauderdale/Hollywood and Guatemala City, Guatemala; Kingston, Jamaica; Panama City, Panama; San Jose, Costa Rica; San Salvador, El Salvador; Santo Domingo, Dominican Republic.

Bonus miles count toward elite status.

Registration is required.

More: http://usairways.com/dividendmiles/7812.htm

Earn Bonus Miles for US Air Vacations

Dividend Miles members will earn extra miles when booking US Airways Vacations packages online between Mar. 1 and Mar. 31, for travel May 1 through June 30.

The bonus: 5,000 miles for air/hotel inclusive vacations to Bermuda and Grand Cayman Island, 3,000 miles for Walt Disney World Resort packages.

More: http://www.usairwaysvacations.com/dble_divmiles.asp

Deal Alert from SmarterTravel.com

1) Domestic Sale Fares on Independence Air from $29 Each Way

Act quickly to take advantage of Independence Air's new domestic sale. Prices start at $29 1-way, and destinations include Las Vegas, Orlando, Washington, D.C., and more.

Travel at the lowest prices is valid on Tuesdays and Wednesdays from Apr. 1 through May 25. Book tickets by Mar. 17. Fares may be combined for roundtrip travel.

More: http://www.smartertravel.com/air/deal.php?id=8533

2) Europe Fares on Lufthansa from $372

Book a shoulder-season flight to Europe with Lufthansa's new April sale. Prices start at $372 roundtrip, and destinations include Frankfurt, Madrid, and Paris.

Departures are valid midweek from Apr. 1 through 30. Book tickets at least 7 days in advance, and by Mar. 22. Fares require a Saturday-night stay, and the maximum stay is 30 days.

More: http://www.smartertravel.com/air/deal.php?id=8519

Win an Apple iPod

Through Mar. 31, enter the InterContinental March Ipod-A-Day Giveaway for a chance to win 1 of 31 Apple 20GB iPods. One iPod will be given away each day during the sweeps period.

To enter, book a stay at an InterContinental Hotels Group website (ichotelsgroup.com, intercontinental.com, crowneplaza.com, hotelindigo.com, holiday-inn.com, hiexpress.com, staybridge.com, candlewoodsuites.com or priorityclub.com); or enter by mail, no purchase required.

More: http://www.ichotelsgroup.com/

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

Feedback from the Frontlines of Travel

[Commenting on last week's coverage of changes to the Choice Privileges program, including the addition of elite tiers...]

"Make note, this one only applies to stays in the U.S. and Caribbean. Therefore this 'elite' program unfortunately holds little water for me.

"When I stay at Choice, it's on an International basis simply to get a small business class hotel room with no frills so I can do my work, and avoid the gouging of Hiltons, Conrads, InterContinentals, Sheratons, Westins, and even some Holiday Inns in some places (like Holiday Inn Golden Mile Hong Kong that raised their award level from 15,000 Priority Club points to 25,000 PC Points... talk about inflation)!

"So if I was to count the number of stays with Choice International, I'd be the equivalent membership level to a Platinum Ambassador with Intercontinental, because some areas I have a 3 - 6 night stay per visit. Instead I get zero points, zero miles, zero stay credits, zero nights with Choice International. As for International Choice Awards, I get none because they give me nothing when I pay to stay at the same hotels that are offering the awards. It's a partial program and frankly Choice's promotions pumping the US and Caribbean is a little insulting as a business traveller, because I'm the one they want, not the equivalent of The Simpson's that complain about 'Buy on Board' on airplanes for their bi-yearly vacation to The Caribbean." (Al from Boston)

"Just wanted to let you know what I've encountered with the H&R Block tax prep offers (Mar. 9 issue).

"Last year I tried to get United miles and the people at the Block office didn't know anything about it. They said they'd look into it but I never got the miles (the previous year it worked okay at same office). This year it was for Priority Club points (Holiday Inn hotel program) but the same office never heard of this offer either and their computers wouldn't take the coupon code. I contacted H&R Block on the internet but all I got was a stock answer of 'thank you for the feedback.' They never did answer my question on where I mail the coupon and receipt for their service. I did get a response from Priority Club and submitted the information to them and they say they are going to follow up to get me my points. I guess we'll have to see about that. Next year I'm definitely going to find another tax prep service!" (Linda K. - WA)

"... I fly US Airways several times a year and have found no problems with service, schedules or performance. The ground and air crews have been great. The only problem since their difficulties started a few years ago is the upkeep of the cabins. Some of their 737's need a cleaning crew to spend a few hours wiping down and vacuuming." (Rich)

Until next week...