U P F R O N T

A Tax on Frequent Flyer Miles, Not! (with Your Help)
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We've alluded to the vagaries of IRS policy and practice in regard to frequent flyer miles many times over the years. Good news: The House of Representatives has taken an important step toward settling the issue, once and for all, resolving the current ambiguities in favor of a definitive "no tax on frequent flyer miles" policy.

The following note is from Mike McKay, Senior Policy Advisor for Congressman Gregory Meeks of New York:

"Thanks for your publication. It is great!! We find it full of good information and advice, especially since Members of Congress and their staff are frequent fliers.

"On Tuesday evening, April 16th, Congressman Gregory W. Meeks (D-NY) and Congressman Mark Foley (R-FL) introduced the Frequent Flyer Tax-Free Liability Act of 2002 today. This bipartisan legislation will codify the treatment of travel-related benefits (i.e., frequent flier miles from airlines, hotels, car rentals, cruise lines, etc.) and make it tax-free! As you know, currently there is no law that prevents the IRS from taxing these kinds of benefits, although IRS has not enforced it.

"Mr. Meeks' district includes all of John F. Kennedy International Airport in New York. Mr. Foley is the co-chair of the House Travel and Tourism Caucus. We are hoping that you will inform your subscribers of this bipartisan legislation, and ask them to contact their respective representatives to co-sponsor the bill. A bill number should be assigned by the end of this week. We will also seek a sponsor of this legislation in the U.S. Senate.

"I believe with you and your reader's help, this bill can become federal law and clarify to the IRS that frequent flyer miles and other travel-related benefits, whether business or personal use, are TAX-FREE. Thank you for bring this matter to our attention in your 2/28/02 publication. Congressman Gregory W. Meeks looks forward to working with you on this and other travel issues."

In next week's issue, I'll have a bill number for you, and a link to the House of Representatives website where the bill can be viewed in its entirety. And I will be asking you to join me in communicating my support for this bill to Congress.

The IRS Loves US Airways
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With the deadline for tax payments behind me, but the pain of writing IRS checks still lingering, I found the following newsbite perversely heartening.

According to Forbes, US Airways posted a 2001 pre-tax loss of $1.85 billion. And they still owed the IRS $272 million in taxes.

If misery loves company, you just have to love US Airways.

American Rules AA.com with Heavy Hand
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If you tried to access your AAdvantage account recently on AA.com, you were informed that you would need a new password to do so and, before you could be issued one, you would have to agree to American's new terms and conditions.

Understandably, most users hit the "I Accept" button without bothering to scroll through the dense legalese. If you didn't read the fine print, you will have missed (but agreed to) the following:

"Your account information is owned by and proprietary to American Airlines. While you may access your account information through the Site, you may not give access to your account to any person or entity other than a member of your household or a person that you directly supervise as part of your career or employment. You may not give access to your account to any third party on-line service, including, but not limited to any mileage management service, mileage tracking service, or mileage aggregration service."

If that's not clear enough, it continues...

"You must access your account information directly through the Site and not through a third party web site, including but not limited to any mileage management service, mileage tracking service, or mileage aggregation service."

In other words, you are agreeing to forego the convenience of using a mileage manager (like MilePro or MaxMiles) to access your AAdvantage account information. Legal? Probably. Fair? Hardly. Customer friendly? Not!

First, the precipitous shutdown of AOL AAdvantage, now this. What's with American? The joke among travel writers is that it's American's new AAggressive AArogance campaign. Apt. And amusing. But American's move begs serious questions.

More in a future issue...

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

Fly 5 in 55 to Earn 55,555 (Partners, Days, Miles)
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The Star Alliance is marking its 5th anniversary with a multiple-of-5 mileage promotion. Here's United's version--

Mileage Plus members who fly 5 paid, qualifying segments on 5 different Star Alliance carriers during the 55-day Anniversary Offer period -- May 14 through July 7, 2002 -- will earn 55,555 Mileage Plus bonus miles. Terms and conditions should be up on United's website sometime early next week.

If you participate in the program of a Star Alliance partner airline other than United, check that airline's website for a similar promotional offer.

Delta Shuttle Promises "Service (or Miles)"
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Between Apr. 15 and May 31, 2002, Delta Shuttle's motto is "20 Minutes or 20,000 Miles." In other words, if Shuttle passengers are not able to get from check-in to the boarding gate in 20 minutes, Delta will compensate them with 20,000 SkyMiles.

Just more hype and marketing gimmickry? Perhaps. Delta is losing business to Amtrak on the Shuttle routes (Boston, New York, Washington, D.C.), and it's a hit they can't afford to take. But at least this guarantee recognizes and addresses head on the cloud that still hangs over travel, the nightmarish inconvenience and unpredictability of the airport experience.

SkyMiles members also will earn triple bonus miles for each one-way flight during the promotion.

> More...

US Airways Triples Shuttle Miles
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Earn triple Dividend Miles on US Airways Shuttle flights between Boston and New York (LGA), and between New York (LGA) and Reagan Washington National, from Apr. 16 through May 31, 2002. Bonus miles will count toward 2002 Dividend Miles elite status.

Register using promotion code 5236.

From NW: Use 5 Partners, Earn 10,000 Miles
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Northwest is offering WorldPerks members 10,000 bonus miles upon completion of the following 3 steps:

1) Register for the offer (link below).
2) Complete 1 qualifying activity (a NW or KLM flight, MCI long distance sign-up, a new WorldPerks Visa account, etc.).
3) Complete 5 mileage-earning partner transactions. In most but not all cases, multiple transactions count multiple times. So, for example, 5 separate hotel stays would earn the required 5 partner credits.

You can register now, but the qualifying activity and the 5 partner transactions must take place between May 1 and July 31, 2002. Registration must occur first, but the qualifying activity need not precede the earning of partner credits.

Complete details (and there are many) are below.

> More...

HHonors Adds Scandic to Hotel Roster
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Hilton has added a new hotel group to the family of brands offering miles and points under the HHonors umbrella. HHonors members can now earn points for qualifying stays at 140 Scandic hotels in 9 countries, including Sweden, Denmark, Norway and Finland.

The addition of Scandic brings the total number of HHonors hotels worldwide to more than 2,300.

Use Diners Club Points for Concierge Service
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Diners Club Rewards members can now redeem points for Concierge Services, including house cleaning (4-hour service from 32,000 points), house sitting (from 25,000 points), services of a personal trainer (from 52,000 points) or chef (from 95,000 points, plus groceries).

> More...

Earn Double United Miles at FTD.COM
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Between Apr. 15 and June 30, 2002, Mileage Plus members can earn double miles (20 for each $1 spent) at FTD.COM.

To earn double miles, you must begin shopping at FTD.COM or call 1-800-SEND-FTD and ask for promotion code 7203.

Go to Golf School, Save Money, Earn Dividend Miles
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US Airways Dividend Miles members can attend a Nicklaus/Flick 2-day golf school for $1,295 -- a $1,000 discount -- and earn 10,000 bonus miles for doing so. The following dates/locations are offered:

Apr. 19 - 20 Tournament Players Club of Scottsdale
Apr. 27 - 28 Lake Las Vegas Resort / Reflection Bay
May 17 - 18 Tournament Players Club of Scottsdale

> More...

Hawthorn Suites to Join Hyatt Gold Passport
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Hyatt Hotels and Hawthorn Suites has announced that "by early 2003," Gold Passport members will be able to earn Gold Passport points at all Hawthorn Suites properties.

Gold Passport members will earn 3 points per $1 spent during Hawthorn Suites stays. Points will be redeemable at any Hyatt hotel or resort or Hawthorn Suites worldwide.

As of March 31, 2002, there were 149 Hawthorn Suites locations.

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...

Sale Fares to Australia and New Zealand as Low as $609 R/T
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American Airlines and Air New Zealand are offering sale fares from the U.S. to Australia or New Zealand. Fares start at $609 on American, from Honolulu to Sydney, Australia, and are as low as $698 from Los Angeles (LAX) on Air New Zealand.

> More...

Get Away to the Caribbean with Sale Fares from $298 R/T
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Spring and summer travel to the Caribbean is on sale from Delta Air Lines. Special fares are valid for travel from selected U.S. cities through July 31, and do not require an advance purchase. Purchase tickets online only and no later than Wednesday, May 15.

> More...

S W E E P S T A K E S & F R E E B I E S

Win a Grand Tour of Europe
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Register online to enter Luxury Link's Grand Tour of Europe sweepstakes. The winner will receive 9 nights' accommodation (London, Paris, Rome) and roundtrip airfare for 2 from New York to Europe.

Enter as often as you wish by Apr. 30, 2002.

> More...

[Other travel-related sweepstakes and giveaways are here.]

R E A D E R R A N T S & R A V E S

Thumbs Up/Down on Travel Agents (cont)
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"This is a reply to Karen. I have used travel agents for over 40 years. In all those years I have always beat their quoted prices. I would find my own "good" fare and use the agent to ticket if convenient. They were not interested in the best fares because they wanted a higher commission. In the old days my better fares were found just by calling airlines on the phone. Now I price check on the Internet. In the name of greed, travel agents spelled their own death sentence and I for one just don't care. It is too easy to do without you."

- Shirley

"I just wanted to comment on Karen's view of Travel Agents. She mentions that they need to be better trained and she's always hearing about how agent's messed something up. Let me tell you that this industry changes more than any industry I know of. Training is all well and good, but when the airlines change their policy as often as their underwear, it makes it hard to know what they want today!! If they wouldn't send us debit memos for thousands of dollars for every stupid little thing, we may not have to call them so much. They break their rules daily, but debit us if we do. They debit us for holding space for a client longer than 24 hours!!! We hold space as a favor to clients, and we pay in the end if the client doesn't call us back to confirm or cancel! Until you have been on this side of the fence, don't act like it's so easy. In every profession there are good and bad seeds. I'm sorry you haven't found a good one!

"In regards to airline online help desks? Talk about order takers who could care less whether or not something works, wait until you have to use one! They don't have to look you in the face or gain your trust as a client. They get there $7 and hourand go home. I doubt they lay awake at night and wonder how to fix your problem!!!! Good luck to everyone without a travel agent."

- Dee

Until next week...