U P F R O N T
Bankruptcy Barometer Reads "Caution"
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Let's call it the Bankruptcy Barometer -- BB for short -- the number of times the term 'bankruptcy' is used in media coverage of the airlines over the course of a given week. The BB may or may not have predictive value. But it's unarguably a measure of media focus. And media focus is both cause and effect of consumer attention and attitudes.
Last week, the needle of the BB was stuck firmly at the high end of the scale, suggesting that the prospect of airline bankruptcies is weighing heavily on the minds of the traveling public. No wonder...
American's unions, which accepted wage cuts worth $1.8 billion under threat of an imminent threat of a Chapter 11 filing a year ago, are embroiled in fierce internal battles pitting apologists for the past concessions against their more militant co-workers.
Gordon Bethune -- who probably deserves a barometer of his own -- pointedly avoided any mention of bankruptcy during his interview on the Nightly Business Report last week. But his despair was palpable as he described how the spike in fuel costs had negated the airline's cost-saving efforts.
A USA Today article, subheaded "Delta's difficulties: Airline could be at risk of bankruptcy," detailed Delta's deteriorating financial position as context for Standard & Poor's downgrade of the carrier's credit worthiness.
Hawaiian Airlines, which has been operating under bankruptcy protection since Mar. 2003, could have a new chairman and investor. Don Carty, former CEO and chairman of American, is affiliated with 1 of several investment groups vying for a controlling interest in Hawaiian after the carrier emerges from bankruptcy.
Carty, you will recall, resigned under pressure from American in Apr. 2003 following a flap over management's failure to disclose executive perks even as rank-and-file workers were being pressured to take cuts.
Northwest, with a $962 million revolving loan due next year, is seeking further give-backs from various labor groups. Absent a quid pro quo from management, the pilots union has pledged not to budge.
United, of course, is still operating under bankruptcy protection, and last week disclosed that it would not able to keep to its schedule, which called for a June exit from bankruptcy.
US Airways chief David Siegel today pitched his reorganization plan to employees. While details weren't available at press time, it is assumed that Siegel's proposal boils down to the bleakest of choices: accede to management's demands for further salary and work-rule concessions or face the almost certain prospect of bankruptcy and, possibly, eventual liquidation. (On a separate but related note, Siegel recently predicted that the eventual airline landscape would include only 3 full-service carriers and a large number of discounters.)
It probably goes without saying that the B-word was not uttered in the same breath as AirTran, ATA, Frontier, JetBlue or Southwest.
Speaking of Media...
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Look for me, Tim Winship, on CNN in the next few days. (Sorry, the schedule hadn't been finalized at press time.) The interview was taped on Tuesday and will be edited so I can't be sure what the final piece will cover. I can tell you that we touched on many top-of-mind issues, including the value of miles, availability of award seats, low-fare carriers' programs, etc.
If you're in St. Louis, or within 250 miles thereof, you can hear me on radio station KTRS 550am on the Travel Planners show this Sunday morning, Mar. 28, between 7 and 9 a.m. central time. The show is also broadcast live via streaming audio on the Internet through the station's website at http://www.ktrs.com.
And this very newsletter got a nice plug in the Apr. issue of Entrepreneur magazine from business-travel expert Chris McGinnis. We were 1 of just 4 publications included by Chris on his "Winner's Circle" list.
<< O N S I T E >>
FrequentFlier Forum Topics
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As always, there's plenty of activity on the FrequentFlier Forum.
Lurker reports that Hilton has discontinued Mutual Fund transfers (see "Miles & Points" below). Tommy is searching for a credit card bonus offer. Peter shows how to earn AAdvantage miles for variable annuities. And much more...
Do you have questions, answers? Post them to the Forum!
> More...
<< M I L E S & P O I N T S ~ sponsored by Hertz >>
More AAdvantage Miles for Starwood Stays
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AAdvantage members will earn as many as 6,000 miles for stays at Starwood hotels (Westin, Sheraton, Four Points, St. Regis, Luxury Collection, and W Hotels) in the U.S. and Canada through June 30. Only Sunday through Thursday arrivals are eligible.
Earn 1,000 miles for the first stay, 2,000 miles for the second stay and 3,000 miles plus 2 50%-discount leisure stay certificates for the third.
Registration is required.
> More...
Charge Tax Payments for Less
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AAdvantage members who use their Citibank AAdvantage cards to charge 2003 federal tax payments at PAY1040@link2gov.com will receive a 10% discount on the 2.49% "convenience fee" assessed for credit-card charges.
[The better deal: Charge the tax payments to a Delta SkyMiles, United Mileage Plus or Starwood-linked card to earn double miles or points. The bonus leaves the "convenience fee" untouched, but effectively halves the price paid per mile.]
The e-mail announcement from Citibank rather unhelpfully included no website link or other Citibank contact info, advising recipients as follows: "For additional information, email LINK2GOV Corp at PAY1040@link2gov.com or visit www.PAY1040.com/ca."
Continental Reprises Mileage Transfer
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Between Mar. 10 and May 31, Continental OnePass members may once again transfer miles to another OnePass account for a service charge of $5 per 500 OnePass miles (2,500-mile minimum transfer).
There's no limit to the number of miles that can be transferred, but members may make transfers to only 1 account or receive miles from a maximum of 5 accounts.
To transfer miles, call 1-800-554-5522. You'll need your OnePass account number and PIN plus the account number to which the miles are being transferred.
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Hilton to Discontinue HHonors Mutual Fund?
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The buzz this week on the FrequentFlier Forum and elsewhere in the mileage community concerned Hilton's abrupt termination of the HHonors Mutual Fund feature, which allows married HHonors members to consolidate their earnings in a single account.
Members who called the HHonors service center were first told that Mutual Fund transfers were no longer possible, then that they could be made on a special-request basis, and finally that Mutual Fund remained alive and well.
When I called Hilton's headquarters office on Wednesday afternoon, the company acknowledged the mixed messages and promised that they would clarify the situation "soon."
My best guess is that such a change is indeed in the pipeline and, as sometimes happens in large organizations, word got out prematurely.
My hope and expectation is that if such a change is indeed in the offing, HHonors will give members sufficient advance notice that anyone wishing to take advantage of the service will be able to do so before it is discontinued.
Stay tuned.
Northwest Triples DEN-LAX Miles
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WorldPerks members will earn triple miles on Northwest's new Denver-Los Angeles nonstop flights between Apr. 4 (launch date) and June 30. Bonus will apply toward elite qualification.
Registration is required prior to travel, and by May 31.
> More...
Cruise for Priority Club Points
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Priority Club Rewards members can earn up to 10,000 bonus points for booking a cruise through Priority Club Rewards Cruises. Choose cruises from Carnival, Costa Cruises, Cunard Line, Holland America, Princess, Seabourn and Windstar Cruises.
Bonus varies according to cruise length, from 2,000 bonus points for 1- to 5-day cruises to 10,000 bonus points for cruises of 13 or more days. Bonus is in addition to the 3,000 to 20,000 points normally awarded for cruises.
For more, visit http://priorityclub.com/cruise or call 1-866-710-8289 (U.S. and Canada) or 757-422-8811 (outside the U.S. and Canada).
US Air Liberalizes Buy-3/Get-1-Free Promo
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When US Airways' first announced its buy-3/get-1-free promotion, L, T, S, V and W fares did not qualify for the offer. The offer now has been modified to include all published fares. Tickets must still be purchased at www.usairways.com to qualify.
The promo is in effect through June 15.
> More...
<< 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...
Europe Sale Fares from $266
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Fares to Europe are on the rise as we approach the Continent's summer peak season, but that doesn't mean you can't find good deals. American and Delta are currently offering sale fares to European destinations including Brussels, London, and Moscow-and we found prices as low as $266 roundtrip.
Booking deadline is Mar. 24 (today) on American, but you have until Mar. 28 to book on Delta.
> More...
Fares from JetBlue and American from $78
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JetBlue is known as a low-fare trendsetter, and the airline is upholding its reputation with its latest domestic fare sale, with prices on short routes starting at $78 roundtrip. American has announced a similar sale for travel between New York (LGA) and Tampa.
Travel on both airlines is valid through Oct. 31, and fares require either a seven or 14-day advance purchase. Neither airline has announced a booking deadline, so these fares could disappear at any time.
> More...
<< S W E E P S & F R E E B I E S >>
Win 600K AAdvantage Miles in American Sweepstakes
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Enter American's "Go All American" sweepstakes by May 15 to win 1 of 3 prizes, including 600,000 AAdvantage miles, a Bose Lifestyle DVD system and $5,000 in American Express Gift Cheques.
Follow the below link to enter online.
> More...
[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]
<< R E A D E R R A N T S & R A V E S >>
Feedback from the Frontlines of Travel
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"I think I know why John (last week's "Rants") has been so successful getting upgrades with Delta's new policy. It's due to all of us who were either run off or left Delta because we were going to lose our Medallion status anyway with their new rules in 2003. There have to be thousands of extra seats up front every day."
- Bob
Until next week...
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