U P F R O N T

Northern Exposure: Canada Rocks
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Canada's a happening place, commercial aviation-wise.

In recent issues, we covered the beginning and end of Roots Air (all in just 41 days), the new Royal Bank AAdvantage credit card, discounted Aeroplan awards, Canada 3000's partnership with AAdvantage, and Air Canada's welcome commitment to make at least 10% of its seats available for Aeroplan awards -- every route, every month.

This week, we have a special elite-qualifying offer for Canadian AAdvantage members (in Miles & Points), and a report on Air Canada's plan to spin off Aeroplan as a separate subsidiary (in Industry News Bites).

O N S I T E

FrequentFlier Forum Topics
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As always, there's plenty of activity on the Forum.

Vovchik broke the news of CyberRebate's bankruptcy. Keith is looking for a Visa or Mastercard which earns multi-airline miles, like the Diners Club card. Sharon knows where to buy Pop Tarts (with 100-mile AAdvantage certs) for $1.50. Linda just returned from a trip to Australia, partially earned by purchasing 400 boxes of Kellogg's cereal. 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

AAdvantage Lowers Thresholds for Canadian Elites
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This year, AAdvantage members with mailing addresses in Canada can earn Gold or Platinum status for fewer miles.

Earn 18,000 miles or points (instead of the normal 25,000) by Dec. 31, 2001, to qualify for Gold status through Feb. 2003. And qualify for Platinum with 35,000 (instead of 50,000) miles or points through year's end.

Delta Touts Award Data
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According to Delta, SkyMiles members redeemed a record number of awards last year. Award seat redemption on Delta and its airline partners increased 9%, from 2.5 million in 1999 to 2.8 million in 2000. Combined with other awards, such as upgrades and Crown Room Club memberships, SkyMiles redemptions topped 3.2 million.

Delta attributed the increase to their Award Travel Tip Line, the Mileage Purchase Program, and the availability of reduced-mileage awards.

Perhaps more significantly, Delta's internal research indicates that more than 86% of those surveyed got the award destination of their choice.

Two editorial comments--

1) As we've said here many times before, we'd like to see frequent flyer data fully disclosed by all airlines. So it's heartening to see Delta deploying SkyMiles data, albeit in a highly selective, patently self-promotional way.

2) Take these figures with a grain of salt. E.g., while redemptions may have increased 9%, it's also likely that mileage accumulation has increased by an even higher percentage. What consumers need -- and legislators should demand -- from each airline is a complete picture of award supply and demand, with consistent reporting metrics adopted industry wide, which allows meaningful comparisons among the programs.

Read E-mail to Earn WorldPerks Bonus
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WorldPerks members who register online to receive promotional e-mails will be rewarded with up to 1,000 bonus miles.

You'll earn the first 500 bonus miles 4 - 6 weeks after registering. Remain registered through Oct. 31 and a second 500 bonus miles will be deposited in your account by Dec. 15, 2001. Current e-mail registrants can also qualify for the promotion by modifying their account and completing the new online form, which gathers more specific travel interests about each customer. E-mail registration must be completed by Aug. 31. Register online at http://www.nwa.com.

Marriott Offers 25K Bonus + Chance to Win a Million
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Marriott Rewards members will earn a 5,000-point bonus for every third qualifying hotel stay between June 15 and Sep. 15, 2001. The bonus can be earned up to 5 times, for a maximum of 25,000 bonus points.

You must register to receive the bonus. If you register online at marriottrewards.com, you'll automatically be entered in a monthly prize drawing -- held May, June and July -- to win 1 million Marriott Rewards points. You can also register for the 25K Bonus by calling 1-888-977-7012, but you will not be eligible for the 1 million points sweepstakes.

Starwood's "Anywhere in the World" Sweeps
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Starwood Preferred Guest members who complete an online registration form (link below) will be entered to win 250,000 Starpoints. Winners will be notified by mail after the drawings on May 31, 2001, Sep. 30, 2001, Dec. 31, 2001, Mar. 31, 2002 and July 31, 2002.

And by entering the 250,000-point drawing, you're automatically entered in the 1 million-point drawing on Aug. 15, 2002.

> More...

Amex Expands International Airline Program
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If you carry either of Amex's top-of-the-line cards, the Platinum or Centurion, you now have a choice of 22 airlines when taking advantage of the cards' International Airline Program. The program offers complimentary companion tickets on participating airlines with the purchase of full-fare Concorde, first or business-class tickets, depending on the carrier.

The new additions are China Airlines, Japan Airlines, LanPeru and South African.

Bid SkyMiles in "More For Your Miles" Auction
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Delta's latest More for Your Miles auction is now open for bids. Packages range from a 5-day Montana getaway (minimum bid 50,000 miles) to a Renaissance Caribbean cruise (minimum 150,000 miles).

The auction closes on June 17, 2001

> More...

Earn AAdvantage Miles for Wellesley Inns Stays
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Effectively immediately, AAdvantage members can earn miles for stays at Prime Hospitality Corp.'s Wellesley Inns & Suites.

Earn 1 mile for each $1 spent at any Wellesley Inns & Suites nationwide. There's no limit to the number of miles that can be earned per stay.

> More...

ClickRewards Offers Bonus for eWine
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Through June 14, ClickRewards members earn 1,000 ClickMiles when making their first purchase of wine from eVineyard. Purchase must be $25 or more to qualify.

Latest Dot-Bomb: CyberRebate
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Rumors of CyberRebate's demise turn out NOT to be exaggerated. According to their website, effective Wed., May 16, 2001:

"CyberRebate.com, Inc., an on-line retailer headquartered in Long Island, NY, filed for bankruptcy protection under Chapter 11 in the Eastern District of New York at 10 a.m. today.

"As of the filing time, CyberRebate.com suspended operations on its Web site.

"Questions regarding customers, vendors and others affected by today's action will be resolved as the bankruptcy process proceeds.

"Sadly, most employees were released this morning. A small staff will remain to take the company through bankruptcy.

"More information will be available once the bankruptcy process gets underway.

"Customers will be contacted regarding their rights and remedies."

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...

Fare War on Summer Domestic and International Travel
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Several U.S. airlines, including Continental, TWA, and United, have released summer sales on domestic and international travel. Purchase tickets by Thur., May 24.

> More...

Savings to/from the East, Southeast, and Midwest from $78 R/T
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AirTran Airways has announced a fare sale on travel to/from cities in the East, Southeast, and Midwest valid for travel between May 26 and Sep. 27.

> More...

I N D U S T R Y N E W S B I T E S

Aeroplan Declares Independence
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Taking a page from the playbook of many U.S. airlines, Air Canada will spin off its Aeroplan frequent flyer program as a wholly-owned subsidiary.

According to the new unit's chairman-to-be, the change is expected to foster a more entrepreneurial culture and help "realize Aeroplan's full potential for profit and to further enhance shareholder value." Aeroplan, together with Canadian Plus (acquired last year by Air Canada), generated more than $350 million from the sale of miles during 2000. The program currently claims 6 million members.

The new subsidiary will focus on adding new partners, and expand its current online features to include a virtual shopping mall, where members will earn Aeroplan miles for purchases of merchandise and other non-air services. The stated goal: become North America's leading customer loyalty program within 5 years.

The change will take affect by the end of the summer of 2001.

Until next week...