Issue #36  --  March 18, 1999

** CONTENTS **

Cathay Pacific Mileage Offers ~ Double Miles on Southwest for Online Bookings ~ Frequent-Flyer Flyer (sic) ~ Southwest: $99 Transcon, One Way ~ Reno Discounts ~ Walkout Imminent at America West ~ Martin Shugrue Dies ~ Business Travel Slowdown ~ Southwest Launches Service to Long Island ~ Revenue Impact of American's Pilot Sickout ~ Site2See: Virtualireland.com

<< M I L E S >>

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Double Miles on Southwest
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Members of Southwest's Rapid Reward program who book their reservations through the Southwest website and complete their travel by December 31, 1999 will earn double credit for each flight.

Members must present their Rapid Rewards membership card when checking in for flights to receive Rapid Rewards credit.

>> More <<
Southwest online

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Cathay Offers Miles for Asia Flights
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Travel to and within Asia remains soft... which means travel providers continue to offer aggressive incentives to keep the planes flying full. Here are a couple of mileage-based offers from Hong Kong-based Cathay Pacific.

<> Customer Appreciation Offer
AAdvantage members can earn 25,000 AAdvantage bonus miles when flying roundtrip in business or first class to Hong Kong, using any Cathay Pacific transpacific route (New York, Los Angeles, San Francisco, Vancouver or Toronto). The offer is valid for travel between March 1, 1999 and September 15, 1999.

<> "Miles For Me" Program
AAdvantage members who fly any of Cathay's five transpacific routes earn up to 5,000 AAdvantage bonus miles when flying business or first class to Hong Kong and Southeast Asia through March 31, 2000.

In a significant departure from past policy (viz. no mileage credit for economy class travel), AAdvantage members can earn 2,000 miles for a qualifying economy class transpacific roundtrip, or 750 miles for one-way. Unfortunately, "qualifying" economy class travel must be booked in Y or W class--the prohibitively expensive flavors of economy--to be eligible for AAdvantage mileage accrual and for the "Miles for Me" bonus miles.

>> More <<
Cathay's website

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Frequent Flyer Advice
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I recently had the pleasure of working with Victoria Lim, consumer affairs reporter for WFLA, the NBC affiliate in Tampa, Florida. Victoria was producing a program on my favorite subject, frequent flyer programs.

I just received a videotape of the product of Victoria's efforts. She and her team did a terrific job: an in-depth, multi-segment piece on getting the most from frequent flyer program participation. And, as a follow-on to the broadcast segments, WFLA has produced a printed flyer recapping their advice to frequent flyers. It's a one-page summary of their recommendations on how to maximize frequent flyer benefits, and minimize frequent flyer frustrations.

If you'd like a copy, send a stamped, self-addressed envelope to:

       Frequent Flyer
       P.O. Box 888
       Tampa, FL 33601

>> More <<
WFLA's website

<< S T E A L S & D E A L S >>

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Southwest, Coast-to-Coast, Cheap
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Southwest Airlines this week did what it does best. It announced special fares: $99 or less, each way, on all Southwest's scheduled flights nationwide.

The special fares are available for purchase from now until April 27 for travel between April 6 and August 4, 1999. Tickets must be purchased at least seven days before departure and within one day of making reservations.

For example, the roundtrip fare from Los Angeles International to Raleigh Durham (new service begins June 6, 1999) or from Oakland to Islip in Long Island, New York is $198 roundtrip, while shorter-haul roundtrip fares such as those from Seattle to Boise and Ft. Lauderdale to Tampa Bay are $78 roundtrip.

The fares require a roundtrip purchase. An overnight stay also is required, and tickets are nonrefundable but may be applied, if unused, toward the purchase of future travel on Southwest. There are no blackout dates for this sale, but seats are limited and may not be available during peak travel times such as Memorial Day, spring break, or Independence Day holidays.

Fares are subject to change until ticketed, and they do not include airport-assessed passenger facility charges of up to $12 roundtrip and segment fees of $2.

Look for other airlines to match Southwest's fares in competing markets.

>> More <<
Southwest's website

[I'm an unabashed fan of Southwest. They offer real value. Their flights operate on time. And their workforce is motivated and good humored. But I have to hold my nose when referring readers to their website. It's the worst airline site on the web. No contest. No kidding. How 'bout reinvesting some of those profits in a website makeover, Southwest?]

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Spring Savings at Reno Air
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Reno Air is offering passengers special Spring savings on fares if tickets are purchased by March 23, 1999 and travel is between March 30 and April 30, 1999.

    Sample markets:

    Reno - Chicago                   $99 one-way
    San Jose - Los Angeles           $39 one-way
    Orange County - Las Vegas        $39 one-way
    Colorado Springs - Los Angeles  $108 one-way
    Portland - San Jose              $49 one-way
    Reno - San Diego                 $49 one-way
    Reno - San Jose                  $29 one-way
    Oklahoma City - Las Vegas       $134 one-way
    San Francisco - Los Angeles      $40 one-way

    Fares may not be available on all flights and blackout dates for April 1, 2, 4, and 5 apply. Fares require a round-trip purchase, must be ticketed within 24 hours and do not include passenger facility charges (PFCs) of $3-$12 or segment fees (ZP) of $2 to $8. Fares also require a 14-day advance purchase, one-night stay and are non-refundable. Any itinerary changes will incur a $35 change fee and possible difference in fare but passengers may stand-by at no charge for same day travel.

>> More <<
Reno's website

<< I N D U S T R Y N E W S >>

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America West Prepares for Strike
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As we go to press on Thursday evening, flight attendants at America West are vowing to shut down randomly selected America West flights, beginning as early as Saturday, March 20, if agreement cannot be reached with the airline's management.

At issue are such basics as salary, per diems, and work rules. To put the salary issue in perspective, senior flight attendants at Southwest Airlines--America West's primary low-fare competitor--earn $41,200 a year, compared to $23,800 for their America West counterparts.

While the airline's official position is, predictably, one of cautious optimism, America West has issued the following policy statement "to minimize potential disruption and inconvenience to its customers" in the event disruptions do occur.

>> America West Flight Disruption Policies

If a flight is canceled due to a flight attendant job action, America West will first attempt to reaccommodate affected passengers on the next most convenient flights. These flights may be on other airlines or America West. Because America West can more easily reaccommodate passengers holding paper tickets to other airlines, it recommends that customers obtain paper tickets for travel between March 20 and March 27. If customers already hold electronic tickets, the Airline recommends that they transfer the e-tickets to paper tickets at any America West ticketing location or through travel agents.

America West will provide a full refund to a passenger whose flight is canceled due to a job action, if America West is unable to reaccommodate the passenger or if the passenger requests a refund.

Furthermore, passengers wishing to change their existing reservations to other America West flights may do so without a change fee within 72 hours of their departure or within seven days of their return date on a trip that has already begun.

Original class of service must be available and original minimum stay restrictions apply. Travel must be completed by Oct. 31, 1999.

America West also issued the following "Frequently Asked Questions and Answers":

1. Will America West's flight attendants definitely engage in CHAOS (an acronym for "Creating Havoc Around Our System") or a strike?

No. America West is committed to reaching an agreement with its flight attendants' union without any disruption to service. We believe that a negotiated settlement remains possible.

2. How soon could CHAOS or a strike happen?

The flight attendants' union may engage in self-help activity, including CHAOS or a strike, after 12:01 a.m. EST on March 20.

3. Can you guarantee that my flight won't be canceled by CHAOS or a strike?

If you are traveling before 12:01 a.m. EST on March 20, you can feel confident of your travel plans, as the flight attendants are prohibited from engaging in any job action before that time. If your travel plans fall after 12:01 a.m. EST March 20, America West cannot guarantee it will be flying as the decision to invoke a job action rests with the leadership of the flight attendants' union. Should such an action occur, America West employees will make every effort to minimize any disruption or inconvenience to our customers.

4. What if my flight is canceled because of a job action?

Should your flight be canceled due to a job action, we will make every effort to reaccommodate you at no additional charge to you. If we are unable to do so, we will fully refund your purchase.

5. Can I cancel my non-refundable ticket now and get my money back?

Since we remain hopeful that we will reach an agreement and continue to fly our full schedule, there are no changes to our current non-refundable ticket restrictions.

6. What about children traveling alone? Should I still book them on America West?

Because of the uncertainty surrounding a possible job action by our flight attendants sometime after 12:01 a.m. EST on March 20, we will not accept reservations for unaccompanied minors traveling after March 19 and until an agreement is reached.

7. How can I get information about my flight?

America West's reservation line is 800-235-9292. Customers can also visit our web site at http://www.americawest.com or contact their travel agent.

8. Will America West Express service be affected?

America West Express will continue to operate a full schedule unless there is a complete shutdown at America West. In that event, America West Express will continue to operate but at a reduced level.

In addition to America West's recommendations, FrequentFlier.com suggests the following if you're holding America West tickets, or if you're flying to/from cities where America has a significant presence (Phoenix, Las Vegas, Columbus, etc.):

* Arrive at the airport early. Even if you're not booked on America West, you could find your seat given to a bumped America West passenger. Depending on the airline, if you don't check in 20-30 minutes before the scheduled departure time, your reservation can be cancelled and your seat made available to someone else. CHECK IN EARLY.

* If you do find yourself bumped, ACT QUICKLY to get yourself reaccommodated. You will be competing with other displaced travelers for those few available seats. If you can't secure an alternative confirmed reservation, get your name on the standby list. If there are several alternative flights, all fully booked, have your name added to the shortest standby list-standby passenger number 10 is more likely to be given a seat than standby number 25.

* Because the odds of being bumped are higher, BE PREPARED to spend time at the airport or even a night at a hotel, possibly without your luggage. Carry prescriptions and other essential items including a change of clothes in carry-on baggage. Keep a little extra cash on-hand for meals, magazines and sundries.

* Use paper tickets. Wherever possible, TRAVEL WITH PAPER TICKETS. E-tickets are great, and will certainly replace paper tickets in the long (short?) term. The problem, for now: airlines cannot accept each other's e-tickets. So if you're booked on a cancelled America West flight, you'll have to wait in line to have your e-ticket converted to a paper ticket before it will be accepted by a different airline.

* Call your travel agent. If you work with a TRAVEL AGENT, take advantage of their services. Your may be able to get your agent on the phone before you get to the front of the airport check-in line, or before you get a response from the airline reservations line. And your agent should be able to suggest flights with available seats, and help with reservations.

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Martin Shugrue Dies
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Martin R. Shugrue Jr., 58, a longtime airline executive, died on March 7th at his home in Houston.

Shugrue was born in Providence, R.I., and was a graduate of Providence College. After serving as a aircraft carrier Navy pilot, Shugrue joined Pan American World Airways in 1968. When furloughed in 1969, he continued working for Pan Am in various management positions.

At the company's headquarters in New York, he worked in personnel and labor relations positions, followed by assignments in Washington and later London, where he was responsible for Western Europe. He returned to Pan Am headquarters where he became senior vice president for Human Resources, and then Marketing and Sales. In early 1983, he was elected vice chairman of Pan Am's board.

Shugrue left Pan Am in 1988 to become president of Continental Airlines. Thereafter, he was appointed Trustee-in-Bankruptcy of Eastern Airlines and moved that company almost, but not quite, to the point of recovery.

With Eastern's demise, Shugrue returned to try to bring his long-cherished dream to reality, the renaissance of Pan Am. With his own capital and other financing support, he started the new Pan Am in 1996, only to see it fail in 1998.

During the last year, Shugrue had a business relationship with Aviation Management Services, a consulting firm specializing in aviation in Latin America.

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Business Travel Costs Increase
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According to a recent survey of corporate travel managers, record-level business air fares are prompting American corporations to reduce air travel and pursue alternatives to offset fare increases.

The survey, conducted February 2-4 by the National Business Travel Association (NBTA), indicates historically high concern by corporations about rapidly rising business air fares and their impact on corporate America's ability to conduct business. The annual survey by NBTA reveals that corporations have restructured travel programs to compensate for rising costs.

Of the 440 companies surveyed, over 73.5% of corporate travel managers stated that the record increases in airfares have moved their corporations to reduce the level of domestic air trips. Significantly, 20% of respondents indicated that they are reducing domestic travel for the first time this year. In response to rising fares, 72% of corporate travel programs have increased their use of low-fare carriers and a record 83% are booking coach instead of first class tickets for air travel. 66% of corporate travel programs are increasing their use of Saturday night stayovers to reduce the cost of air travel and 83% of programs are increasing the use of advanced purchase fares--up 21% from the previous year's results.

Over 45% of corporate travel managers report that senior executives are flying coach as opposed to flying first or business class. Additionally, over 72.5% of corporations have incorporated the use of corporate or charter flights into their program, with 36% reporting that the use of corporate or charter jets for the first time this year.

To offset rising airfares, corporate travel managers have positioned travel programs to maximize productivity without sacrificing cost. 76% of corporate travel programs have reduced the number of employees on business trips an increase of 22% of last year's results. 83% of corporate travel managers have moved to take advantage of advance purchase fares designed for the leisure market up 21% over the previous year.

Corporations have proved effective at developing cost saving strategies to reduce travel expenditures. Over 90% of corporate travel managers report actively negotiating with air carriers for reduced rates up from 69% during the same time last year.

Corporate travel programs continue to aggressively incorporate alternatives to traditional business trips. 72.5% of survey respondents indicated that they have increased their reliance on video- and tele-conferencing as an affordable alternative to air travel.

Interesting stats, if a bit suspect given the NBTA's constituency and mission.* This survey certainly lends itself to use as a stick with which to threaten the airlines into keeping their fares in check.

(* According to their press release: "The National Business Travel Association represents more than 2,200 corporate travel managers and travel service providers. NBTA members manage and direct more than $65 billion of expenditures within the business travel industry.")

>> More <<
NBTA online

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Southwest Arrives on Long Island
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On Sunday, Southwest launched its new service to Long Island's MacArthur Airport.

Southwest began the new service with 12 daily nonstop flights to four cities: eight daily flights to Baltimore/Washington, two flights to Chicago Midway, one flight to Nashville, and one flight to Tampa Bay. The airline also offers direct or connecting service to 29 other cities across the country.

Southwest brings long-awaited discount fares to Long Island travelers. Southwest offers a $65 one-way unrestricted fare between Islip and Baltimore/Washington, a 54 percent savings over the $140 fare offered by other airlines at MacArthur Airport. This fare is not an introductory offer -- it is available on every seat, every flight, every day between MacArthur Airport and Baltimore/Washington.

Southwest will operate its quietest aircraft, the Boeing 737-700, from MacArthur Airport. Southwest was the launch Customer for the -700 in 1997 and will take delivery of 28 more of the new aircraft during the remainder of 1999. The airline's fleet totals 284 Boeing 737s with an average age of 8.4 years, one of the youngest pure jet fleets in the domestic airline industry.

Southwest Airlines is the fourth largest domestic carrier in terms of passengers boarded. With the addition of service to Islip, Southwest serves 53 cities in 27 states with more than 2,400 daily flights. Southwest recently announced it will add Raleigh-Durham, N.C., beginning June 6, increasing its nationwide network of destinations.

>> More <<
Southwest's website

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Sickout Cost American $200 Million
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In case you were trying to quantify the financial fallout of last month's sickout by American's pilots, AMR, the parent company of American, has released its own assessment of the damage.

AMR estimates that the pilot union's job action resulted in a pre-tax earnings impact of approximately $200 to $225 million during the first quarter 1999.

"Our February financial results showed a greater loss of higher yield traffic than we had anticipated," said Gerard J. Arpey, AMR's senior vice president of planning and chief financial officer. "In addition to the losses associated with the canceled flights, customers were reluctant to book American for a period of time after the job action." In testimony before the U. S. District Court on February 17, AMR stated that losses due to the job action could easily exceed $150 million.

>> More <<
AMR's website

<< M I S C E L L A N Y >>

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Site2See
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Since it is (or was) St. Patrick's Day, it's only fitting that we point you in the direction of an Ireland-related website.

Virtualireland.com is as Irish as it gets. And, appropriately, it went live yesterday, St. Patrick's Day. Among other things, it allows visitors to:

 - View same-day footage of the St. Patrick's Day parade in Dublin

 - Send virtual rounds of Irish stout, Irish whiskey, or St. Patrick's Day cards to anywhere in the world

 - Enter the virtualireland.com sweepstakes for a free trip to Ireland

 - Listen to traditional Irish music

And of course, you'll see plenty of banner ads from Air Lingus.

>> More <<
Virtualireland.com

Until next week...