U P F R O N T
American Shifts Into Self-Destruct Mode
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Amid all the recent criticism of the beleaguered airlines, American seemed to be flying above the clouds.
Sure, they were losing boatloads of money, but their management looked pretty good compared to the bumblers and double-dealers heading up other carriers.
Until late last week, that is, when it came to light that American chief Don Carty had dealt himself and his top managers an obscenely generous package of retention bonuses and pension guarantees while imploring the rest of American's 100,000 employees to agree to drastic pay cuts, all the while invoking the spirit of "shared sacrifice."
Things quickly unraveled, with American's unions going ballistic, Carty apologizing, and the airline's very future thrown into doubt. Among the ironies: there's a rumor that Carty's predecessor, Bob Crandall, whose clashes with labor earned him the nickname Darth Vader, might be called back to replace Carty.
Now, American's labor force finds itself in the ridiculously self-defeating position of possibly re-voting to rescind concessions in the short term, knowing that a bankruptcy filing will be triggered and lead to much more drastic concessions later. A case study in cutting off your nose to spite your face.
American's rapid descent from Golden Boy to whipping boy is nothing less than breathtaking.
You've heard of dysfunctional families? This is a dysfunctional industry, so wrought with anger, greed and incompetence that it is self-detonating as we watch, horrified but fascinated.
'Scuse me, I have to go back to the wire services.
Airlines' 1st-Quarter Results: Grim (Again)
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Over the past week, most major airlines posted their first-quarter financial results. Predictably, they were dismal.
Airline |
Q1 Profit / (Loss)* |
AirTran |
$2 |
| Alaska |
($56) |
| American |
($1,043) |
| America West |
($62) |
| Continental |
($221) |
| Delta |
($466) |
Midwest Express |
($12) |
Northwest |
($396) |
| Southwest |
$24 |
* millions
American's news release may as well have been speaking for the entire industry: "We are beset on all sides by a struggling economy, the continued uncertainties regarding hostilities in the Middle East, concerns regarding the SARS outbreak, fuel prices that are significantly higher than they were a year ago, and fare levels that are at 30-year lows."
SaveSkyMiles Takes It on the Road
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The group responsible for the SaveSkyMiles.com website (http://saveskymiles.com) is ratcheting up the pressure on Delta to roll back unpopular changes to its frequent flyer program by mounting a mobile billboard campaign.
The billboard should be circulating around New York airports (La Guardia particularly) on Wednesday and Thursday, then in the vicinity of the Plaza Hotel (Central Park South) on Friday.
Preview the billboard here: http://frequentflier.com/saveskymiles.htm.
M I L E S & P O I N T S
Alaska Doubles Miles for West Coast Flights
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Through June 30, Mileage Plan members will receive double miles on Alaska Airlines or Horizon Air flights to or from Vancouver, San Francisco and Los Angeles.
Register prior to the first qualifying flight at http://www.alaskaair.com.
Asiana Launches Mileage Credit Card
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Members of Asiana Club can earn 1 mile for every $1 charged to the new Asiana Visa card issued by Bank of America.
The card comes in Classic and Platinum versions, with Classic cardholders receiving 3,000 miles and Platinum cardholders 5,000 miles as a first-use bonus. As a special promotion for new accounts opened by June 30, new Classic cardholders will be awarded another 3,000 bonus miles, and new Platinum cardholders an additional 5,000-mile bonus.
The card also offers annual benefits such as, discounts on Asiana ticket purchases, free lounge passes and upgrade opportunities to qualified cardholders.
> More...
Best Western Offers Bonus Miles for Travel Cards
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Between May 1 and July 31, members of Best Western's Gold Crown Club International program will earn 250 American, Northwest or United miles for every $100 purchased on a Best Western Travel Card -- a prepaid stored-value card that can be used toward Best Western stays worldwide.
> More...
From Continental: Miles-for-Fido
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Continental is offering OnePass members frequent-flyer miles when they travel together with their pets on the same Continental flight, using the carrier's PetSafe service.
Miles are awarded according to the PetSafe shipping bill: every $1 spent earns 1 OnePass mile. (In-cabin pets and service animals do not qualify.)
The promotion is in effect between through Dec. 31, 2003. Between now and July 14, miles are doubled.
Further details on the PetSafe program are available online here, or by calling the Animal Desk at 1-800-575-3335.
Earn Double SkyMiles for ALL Charges
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SkyMiles members will earn double miles for EVERY eligible $1 spent using a Delta SkyMiles credit card from American Express between May 15 and July 15. (The Amex SkyMiles card's "Always Double Miles" feature normally awards double miles for purchases only at selected retailers.)
Registration is required (link below).
> More...
Hilton HHonors -- CORRECTION
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In last week's Crier, our report on the new HHonors partner, Awards for Mortgage & Real Estate, included the following:
"Miles are also offered for home equity loans, home sales and moving services. And there's an additional bonus of up to 10,000 miles for Gold and Diamond members."
As should have been blindingly obvious, HHonors members won't earn miles for the referenced transactions, they'll earn Hilton HHonors bonus points.
Apologies for the misdirection.
> More...
United Offers Double US Air Miles for Int'l Flights
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Members of US Airways' Dividend Miles program who purchase a roundtrip ticket on United to Europe or South America, for travel between May 1 and July 31, will earn double Dividend Miles. Register here.
Also, the double miles offer for United flights to Asia and the South Pacific has been extended to July 31. Register here.
There is no limit to the number of trips that qualify for the bonuses.
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...
Domestic and international spring sale from $68
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Spring can be a good time to get away before prices go up for the summer. Northwest has extended its sale fares for spring travel throughout the world. Higher summer prices are also available to domestic and European destinations.
Most other carriers have matched Northwest's fares.
Travel dates and booking deadlines vary by destination.
> More...
Summer flights to/from the U.S., Canada, and Mexico from $68
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Take advantage of Alaska's summer sale fares to/from destinations on both coasts, as well as to Canada and Mexico. Travel is valid through Oct. 16. Book tickets at least 7 days in advance and by Wednesday, Apr. 30. Other airlines have matched these fares.
> More...
True (Funny) Travel Stories
True (Funny) Travel Stories
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Caller to an airline reservations agent: "When my last flight was delayed, the captain instructed the flight attendants to give everyone a free drink. I was underage at the time, so they wouldn't serve me. Can I get my free drink on this flight? If not, the money will be OK."
[FrequentFlier Funnies are true stories told by pilots, reservations agents and other travel industry professionals, reprinted with permission from William Joric's "Air Sick Humor."]
Until next week...
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