U P F R O N T
A New Plan for Aeroplan
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The June 1 news release posted on Aeroplan's website trumpets "THE NEW AEROPLAN."
In this case, what's new is both the program's look and feel (redesigned logo, membership card and website) and its future direction. And it is the latter change that is the big story here.
In short, Aeroplan is being transitioned from a traditional airline frequent flyer program, with an emphasis on travel-related activity, to a frequent-buyer program, with an emphasis on rewarding retail spending.
According to Aeroplan, more than half of Aeroplan miles are already earned for non-flight activity, and the majority of surveyed members wanted more earning opportunities "through regular household purchases - whether filling up the grocery cart or the gasoline tank."
In addition to bringing new retail and services partners into the fold, a key element in the program's reinvention is the Aeroplan card itself. The new membership card has a magnetic stripe on the back, making the member's encoded information machine-readable when making purchases at participating retailers.
Aeroplan will not have the retail loyalty market to itself. They will be going head-to-head with Air Miles (https://www.airmiles.ca/), which boasts participation by 7.6 million Canadian households, half the country's total, and features more than 100 program partners in 12,000 locations throughout Canada.
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While Aeroplan's ties to Air Canada are conspicuously downplayed on the new website, for the time being Aeroplan remains a wholly owned subsidiary of Air Canada. But Air Canada is still operating under bankruptcy protection, and the airline's future is an open question.
The sale of an asset such as Aeroplan would help shore up Air Canada's balance sheet, and must be among the options being discussed behind closed doors. In fact, just last year a Toronto-based conglomerate, Onex, was set to purchase a 35% stake in Aeroplan for $165 million. That would suggest that, at the time, a freestanding Aeroplan had a market value of $600 million.
The deterioration of Air Canada's financial situation and prospects for survival can only have diminished the program's value to potential investors. And indeed, Onex eventually withdrew its offer.
But it stands to reason that these changes -- positioning the program to grow and prosper independently of Air Canada -- are a prologue to at least partially privatizing Aeroplan, and selling shares to outside investors.
(Financial footnote - Air Canada reports that the program generated $600 million in 2003 from the sale of miles to program partners.)
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What does all this mean to Aeroplan members?
On the upside, a robust Aeroplan increases the odds of Aeroplan miles surviving in the longer term, regardless of Air Canada's fate. The downside: expanded earning opportunities will translate into increased demand for award seats, which can only make a bad situation worse.
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<< O N S I T E >>
New Site Features: Polls 'n Products
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While most Americans were relaxing over this past 3-day holiday weekend, we were busy adding 2 features to the FrequentFlier.com website.
First, we've resurrected the FrequentFlier Polls, installing a new survey software package to allow us to gather feedback on various travel-related issues. To begin with, we've put up 5 polls, including "Best U.S./Canadian Airline Program" and "Best Hotel Chain."
I especially encourage our readers to weigh in on the new awards survey, expressly designed to provide a more definitive understanding of which airlines are doing the best, and worst, job of delivering frequent flyer awards.
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Secondly, in response to a surprising number of requests from readers who apparently don't have enough logo t-shirts, we have cobbled together, in conjunction with CafePress, an online store where you can purchase a range of items (mugs, apparel, mousepads, bags) branded with the FrequentFlier.com logo.
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FrequentFlier Forum Topics
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Max takes issue with Northwest's "Detroit to New York, NY" promotion. Ronald has a link to an online wine retailer who awards AAdvantage miles for purchases. Ella's excited about United's Bermuda promotions -- discounted awards or bonus miles, your choice. And much more...
Do you have questions, answers? Post them to the Forum!
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<< M I L E S & P O I N T S >>
Mexico Vacations Earn AAdvantage Bonus Miles
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AAdvantage members who book AmericanAirlines Vacations packages to Mexico by July 31 will earn up to 11,000 bonus miles.
Eligible packages include 5-night stays at participating hotels in Cancun/Riviera Maya, Cozumel, Los Cabos, and Puerto Vallarta, or 7-night stays in Ixtapa. Earn 8,000 AAdvantage bonus miles per booking, plus an additional 3,000 bonus miles when booking online, for a total of 11,000 bonus miles.
Travel may take place between July 1 and Dec. 15.
> More...
Go to the Movies for AAdvantage Miles
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AAdvantage members who purchase 3 large Coca-Cola fountain drinks at any of Cinemark's 188 U.S. movie theaters in 33 states will earn 300 AAdvantage miles and be entered automatically into a sweepstakes to win 50,000 AAdvantage miles (see "Sweeps & Freebies" below).
After earning the initial 300 miles, each subsequent purchase will earn an additional 100 AAdvantage miles.
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Double Miles on Delta
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Between June 1 and July 31, SkyMiles members will earn double miles on the following 5 routes: Delta Connection/Chautauqua Airlines flights between Tampa and Tallahassee; Delta Connection/Comair flights between New York (JFK) and Charleston or Savannah; Delta Connection/Comair/Atlantic Coast Airlines flights between JFK and Raleigh-Durham;. Delta Connection/Comair/Chautauqua Airlines flights between JFK and Detroit Metropolitan Airport (DTW).
Registration is required.
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Double Miles for Delta Charges
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Between June 15 and July 15, eligible charges made on registered Delta SkyMiles credit cards will earn double miles, i.e. 2 miles per $1 rather than the normal 1 mile per $1. Charges not eligible for the bonus: travel, charities, wholesale goods and services (except for warehouse clubs), restaurants within lodging establishments and business services.
How does this relate to the existing "Always Double Miles" earning feature of Delta's card? It adds retail, dining and entertainment charges to those made at gas stations, supermarkets, home improvement and hardware stores, drugstores, U.S. Post Office, and wireless phone bill payments.
A maximum of 10,000 bonus miles may be earned during the promotion.
Registration is required. Call 1-800-653-6051 or use the link below.
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Hilton Brings Award Booking Online
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Hilton HHonors members can now book their Standard or Point Stretcher award stays online.
Begin by clicking on the "Reservations" link at hiltonhhonors.com.
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Independence Air, iClub, Set for Take-Off
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On June 16, Independence Air takes to the air as the country's newest discount carrier, based at Washington-Dulles. (Independence is the reincarnation of Atlantic Coast Airlines (ACA), which formerly operated primarily as a regional feeder for United. Independence has severed its ties with United and completely redesigned its business model.)
Yes, Independence has a mileage program, iClub. Unlike most programs, iClub awards points for dollars spent on tickets, including taxes and fees, rather than for flights taken or miles flown. Specifically, members earn 1 point for every dollar spent. And a free ticket is earned for a flight to any destination within 1,500 miles for 1,500 points. Longer award flights require 3,000 points.
So if you were paying an average of $250 per Independence Air ticket, you'd have to fly 6 roundtrips to earn 1,500 iPoints and a free roundtrip. That's neither great nor terrible, compared with major airline programs.
What is great about the program is that there are no blackout dates or capacity controls on award seats. As their website says: "If there is a seat available on a flight, it is available for award use." And what is terrible about the program is the mileage-expiration policy: points expire after 12 months.
Rather than the double or triple miles typically offered to promote new flights, Independence is offering iClub members a $25 discount for their first roundtrip purchased and flown by Sept. 30.
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Free Marriott Night for New Visa Cardholders
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Through Sept. 30, new Marriott Rewards Visa Signature or Business cardholders will earn 1 free night after their first charge. That's in addition to the standard 15,000-point bonus awarded after the first purchase.
The free-night certificate is valid at category 1-4 hotels and is good through March 31, 2005.
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Northwest Reprises "Fly Free Faster"
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Between June 1 and Aug. 31, WorldPerks members who complete 1 "qualifying activity" and 5 partner transactions will earn 10,000 bonus miles.
Qualifying activities include a qualifying Northwest flight, signing up for a new WorldPerks credit card, etc. Partner activities include just about all mileage-earning transactions not classified as "qualifying activities." See the Northwest website for details.
Registration is required, prior to qualifying or partner activities. Thereafter, qualifying and partner activities may occur in any order.
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More US Air Miles for Charging Full-Fare Coach Tickets
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Through Apr. 30, 2005, Dividend Miles members who use their US Airways Visa Signature cards to charge selected full-fare coach tickets (Y, B, N and U fare classes) for travel on US Airways, US Airways Express or US Airways Shuttle will receive a 50% booking bonus. The bonus will count toward earning Preferred status.
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<< 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 on AirTran, American, US Airways from $98
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AirTran is offering domestic sale fares starting as low as $98 roundtrip, and American and US Airways have announced similar sales. Departures on most routes are valid through Nov. 9.
Book tickets at least 7 days in advance on all 3 airlines. Book AirTran tickets by Thursday, June 3. American and US Airways have not announced booking deadlines, so the sale fares could disappear at any time.
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Bermuda Sale Fares from United starting at $318
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To promote its new service to Bermuda, United has announced summer sale fares starting at $318 roundtrip. Departures are valid on Saturdays through July 24.
Book tickets at least 7 days in advance, and by Saturday, June 26.
> More...
<< 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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"As a resident of the Washington DC area (northern VA actually, but I consider Dulles my "hometown" airport), I'm absolutely delighted with the prospect of Independence Airlines coming to our market. It will be a refreshing change from United and US Airways. Any comments on their mileage program?"
- Greg
[Editor's Note - See "Miles & Points" above. Again, the conspicuous downside to iClub is the 12-month points-expiration policy.]
<< S W E E P S & F R E E B I E S >>
Win 50K AAdvantage Miles
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Enter the Cinemark-American Airlines AAdvantage Sweepstakes by Aug. 26 to win 1 of 5 grand prizes of 50,000 AAdvantage miles each.
To participate, earn miles in the Cinemark theater promotion (see "Miles & Points" above), or mail contact info to the sweepstakes sponsor (details at the below website).
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[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]
Until next week...
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