U P F R O N T
This Week's Travel Newsbites
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Good-News/Bad-News Financials
Since reporting the 1st-quarter financial results of most major U.S. carriers a couple of weeks ago, 2 more airlines have disclosed earnings which neatly represent the opposite sides of the travel-performance spectrum.
Weighing in on "the sky is falling" side, United's chief Glenn Tilton blamed the bankrupt carrier's $1.3 billion loss -- the largest ever, for any airline -- on "the conflict in Iraq, the weak economy and a fierce low-fare environment." Operating in exactly the same environment, JetBlue managed a $17.6 million profit, and seemed to positively taunt the floundering mainline carriers by announcing plans to purchase 65 A320 jets.
Late-breaking news -- As we go to press this week, US Airways is reporting its 1st-quarter results, which come down squarely on both sides of the good-news/bad-news dividing line.
Depending on who's telling the story, the headline is either that US Air lost $282 million or made $1.63 billion. The former figure is net of "unusual gains" and various arcane accounting adjustments associated with the carrier's exiting bankruptcy on Mar. 31.
Swiss --> Star?
Swiss International -- the reincarnation of defunct Swissair -- is the focal point of merger rumors. The other party in the purported get-together: Lufthansa. Even short of an outright merger, a commercial tie-up between the 2 carriers would likely presage Swiss's entry into the Star Alliance, co-anchored by Lufthansa and United.
In the Archive: MSNBC/Frommer's Chat
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If you missed yesterday's MSNBC/Frommer's online chat -- yours truly answering questions on mileage programs -- you can see the archived version at the link below.
To no one's great surprise, many of the questions related to fears of deceased airlines and lost miles.
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M I L E S & P O I N T S
Alaska Air Now Features iStay Miles
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Members of Alaska Airlines' Mileage Plan can now earn 5 miles per $1 spent at hundreds of boutique hotels and independent resorts through iDine, the company which operates the miles-for-dining program for Alaska's program, and for many other airline programs.
The hotel program works the same way iDine's dining program does. Members first register 1 or more credit cards to participate. Then, when using a registered card to charge a stay (or meal) at a participating hotel (or restaurant), the miles are automatically credited to the member's account. The beauty of the iDine system is that the transaction is captured automatically, with no additional action required on the member's part.
Current Mileage Plan Dining members and Alaska Airlines Visa credit cardholders are automatically enrolled in the program.
There is a salient difference between earning dining and hotel miles: the hotel stay must be booked online at http://www.mileageplan.idine.com or with Mileage Plan Dining and Hotel Rewards Member Services at 1-888-419-6683. The program promises members "the best available room rates," but consumers would do well to shop other outlets to be sure they're not paying extra for the miles.
To promote the addition, Mileage Plan members will earn double miles -- 10 miles per $1 spent -- through Sept. 30 at participating hotels.
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[I'm guessing that the hotel link will eventually apply to all iDine's many airline partners, but there wasn't time to confirm that at press time. Look for more information next week.]
CanJet Launches SmartRewards
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As of May 1, Eastern Canada's low-price carrier CanJet has its own frequent flyer program, SmartRewards.
SmartRewards members earn 1,000 points for every 1-way flight, and can redeem 6,000 points for a free 1-way flight. Bottom line: fly free after every 6 paid flights. Unfortunately, CanJet took their cue from Southwest and JetBlue and made the consumer-unfriendly decision to expire points after just 12 months.
As a start-up promotion, members earn 250 bonus points for flights booked by May 14.
For now, the program has no earning or redemption partners.
For more information, or to sign up, visit http://www.canjet.com/en_srfaqs.asp.
You Have SaveSkyMiles Mail
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The 2-year-old SaveSkyMiles initiative took a significant step forward this week with the publication of its first e-mail newsletter, which supplements the SaveSkyMiles website and rolling billboards (http://www.frequentflier.com/saveskymiles.htm).
SaveSkyMiles is the collective effort of a band of Delta loyalists who take exception to recent changes to the program.
I happen to think they're right to be upset, and I applaud the grit and communications savvy they've shown in advancing their cause.
Even if I disagreed with their premise, it'd be a compelling David versus Goliath story and a case study in leveraging the Internet to advance consumer rights.
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Delta Serves Up Miles-for-Java
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SkyMiles members who purchase coffee at http://www.javacity.com/delta by May 31 will receive a 10% discount and earn 5 miles for every $1 spent on Java City products.
So if the miles are worth 2 cents apiece, the mileage component of the offer amounts to a 10% rebate, bringing the total discount to 20%. Drink up!
United Offers Grocery Miles Enrollment Bonus
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Between May 22 and July 30, Mileage Plus members will earn 1,000 bonus miles for enrolling in the GroceryMiles program.
GroceryMiles participants earn 125 miles for every cumulative purchase of $250 at participating Safeway, Vons, Dominick's, Pavilions, Genuardi's and Pak'n Save stores. Plus, there's a 1,000-mile bonus for spending $250 or more between May 22 and July 30.
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From US Airways: Online Booking Bonus
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US Airways wants Dividend Miles members to book their award travel online. And for a short time, they're offering a significant incentive to do so.
Dividend Miles members who book award travel at usairways.com between May 6 and May 23 will earn 2,500 bonus miles.
To book award travel online, visit usairways.com, access your Dividend Miles account, and select Redeem Miles. After choosing a destination, the online calendar displays the available dates for award travel, 2 months at a time for an entire year.
There's an additional bonus for just doing it online: no fee for last-minute reservations.
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...
Two-day systemwide AirTran sale from $98
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Act quickly to plan a summer vacation on the East Coast, out West, or in the Bahamas, with AirTran's new 2-day sale. Travel is valid to/from Atlanta, as well as every other city in the airline's route system, through Oct. 15. Book tickets at least 7 days before departure and ** by Thursday, May 8. **
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Fly to Puerto Rico or the USVI from $369
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Springtime is when fares to Caribbean destinations begin to drop from their high winter levels, and right now American is offering low sale fares for travel to San Juan, Puerto Rico, as well as St. Croix and St. Thomas in the U.S. Virgin Islands. Travel is valid through June 20. No booking deadline has been announced; tickets must be booked at least 3 days before travel.
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R E A D E R R A N T S & R A V E S
This Week's E-mail Bag
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"In a form letter from Kendall Stork, President and CEO of Citibank (South Dakota), N.A., we TravelerMiles program members were told,
"'No other reward program values you more. That's why we're making sure you know about the exciting changes being made to the TravelerMiles program that will make it even more rewarding.'
"Leading with traditional corporate-speak, Mr. Stork went on to explain that one of these "exciting changes...that will make it [the program] even more rewarding" was a huge reduction in the benefits, a huge increase in cost of the TravelerMiles $100 discount coupon on any airfare.
"It used to be that 6000 points (1 point per dollar) earned program members a $100 discount coupon on any airfare. As of July 14th, 2003, it will take 8000 points to earn that same $100 discount coupon.
"That's a full one-third, 33-1/3% increase in the "cost" of my ticket. Where I used to spend $6000 for the $100 discount, I now must spend $8000 for the same discount. In this economic environment?
"We know you have less to spend, folks, but why don't you just go ahead and spend more so we can give you less. Ah, the free enterprise system at work.
"Can somebody please tell me 1) how it is that Mr. Stork thinks these 'exciting changes' reflect how much he values us, and 2) how this reduction in benefits makes the program 'even more rewarding?'
"Me, I feel decidedly de-valued...."
- Baron in Santa Fe
[Editor's Note - It is indeed astonishing and infuriating that otherwise reputable, successful companies routinely disrespect the intelligence of their customers with such patently disingenuous messages. Instead of adding insult to injury, they might as easily say, "In order to manage our business responsibly -- to best balance the interests of our customers, employees, shareholders, etc. -- we have to make some adjustments to our program. Please understand." How refreshing would that be?]
F R E Q U E N T F L I E R F U N N I E S
True (Funny) Travel Stories
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A supervisor reports speaking to an irate lady who was upset about not being able to "make a deal" with the airline. She wanted to cancel her itinerary during the busy holiday travel time and allow the airline to re-sell those prized seats, which she saw as a big favor. In return, she wanted free denied boarding compensation seats in advance. Explaining that while it's true that holiday flights are often overbooked, and frequently free seats are given as compensation for denied boarding, the supervisor denied the passenger's request. "Because passengers book several flights and don't cancel," she explained, "we have no way of knowing which flights will actually be oversold until we see who shows up." Not satisfied, the woman refused to give any information for canceling the flights she didn't intend to use and said in a low, mean-spirited voice, "Two can play at this game!"... and hung up.
[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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