Issue #46  --  June 17, 1999

** CONTENTS **

10,000 Miles (What's Wrong with this Picture?) ~ AAdvantage Card for Small Business ~ Air Pacific Joins AAdvantage ~ Delta Offers Platinum Amex Card ~ ClickRewards ~ E*Trade Tell-A-Friend Promo ~ At BA: Buy-1, Get-1-Free ~ American's Europe Promotion ~ Lufthansa's Online Auction ~ Happy Birthday, Delta ~ E-Tickets Go Interline ~ Children Flying Alone

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What's Wrong with this Picture?
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Here's the picture: It's an ad, co-sponsored by two competing companies, both of their logos prominently displayed. Two companies which, combined, have a lock on the market in question. In the ad, these two companies offer an identical incentive to consumers who use either of their products. Two companies, one ad, one offer.

If memory of the dreary science serves, this would amount to some type of anti-competitive activity. Collusion... restraint of trade... something along those lines. The kind of thing the DOJ is in business to discourage in no uncertain terms.

Imagine my surprise when I saw a print ad featuring United and Lufthansa (competitors on U.S.-Germany routes, but partners under the Star Alliance), with the following copy: "Fly roundtrip in paid First or Business Class on any Lufthansa or United Airlines flight to Germany between June 1 and August 31, 1999 and you can earn 10,000 miles in Lufthansa Miles & More or United Airlines Mileage Plus." Hmmmmmm.

I'm all in favor of bonus miles. The more, the better. But when two ostensible competitors have demonstrably colluded to make the same offer, one has to wonder if their "partnership" has gone over the line. Is this any different than Coke and Pepsi sitting down together and jointly setting prices? (Frequent flyer miles are, I would argue, an aspect of pricing.) Am I missing something here? Were United and Lufthansa granted anti-trust immunity while I was out of the room?

If you're traveling to Germany, do enjoy the extra miles. But ask yourself whether you might be earning even more miles if United and Lufthansa had been behaving as competitors, rather than colluders.

>> More <<
Lufthansa
United

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New AAdvantage card for Small Businesses
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According to a recent study by National Small Business United, an industry trade group, small business owners are increasingly using credit cards for payment of goods and services; 47 percent of small business owners used credit cards in 1998, up from 34 percent in 1997. In response to this growing demand, Citibank and American Airlines this week launched a new addition to the Citibank AAdvantage brand of credit cards -- the Citibank Platinum Select AAdvantage Business Card.

The new card provides small business owners with an opportunity to earn rewards when they -- or their employees -- use the card to make purchases. The business owner can open an account with up to nine additional cards for use by employees, with all purchases on the cards earning miles. One American AAdvantage mile is earned for every dollar spent up to 150,000 miles per calendar year.

In addition to the miles redeemable for free travel, upgrades and other related benefits on American Airlines, cardholders also qualify for discounts on computer equipment, automobile rentals and hotel stays. Other special benefits include Reduced Mileage Awards and the opportunity to earn double miles for stays at Wyndham Hotels. Awards earned on purchases made by employees accumulate toward the business owner's American AAdvantage frequent flyer account.

Those customers expected to benefit most from this new credit card include traditional retail small business owners, as well as professionals (e.g., doctors, dentists, accountants, lawyers) and SOHO (small office/home office) business owners. The card will not only provide these owners with many of the services and features that have come to be associated with consumer credit card offers, but will also help them manage their business finances with monthly statements and quarterly/annual reports that track and summarize spending by employee and category.

The Citibank Platinum Select AAdvantage Business Card carries a $75 annual fee, plus $25 for each additional card, and an APR of Prime + 9.9%.

>> More <<
To apply for a card, small business owners should call 888-66-APPLY.

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Air Pacific Joins AAdvantage
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Air Pacific Limited, the flag carrier of the Fiji Islands, has joined the American Airlines AAdvantage program.

Effective immediately, American Airlines AAdvantage members may earn mileage and claim awards on Air Pacific. The airline provides service between Nadi, Fiji, and Honolulu and Los Angeles, as well as between Fiji and Japan, Australia, New Zealand, Western Samoa, Tonga, Tahiti, Vanuatu and the Solomon Islands.

To raise awareness of the tie-up, Air Pacific is offering AAdvantage members double miles on flights between the U.S. and Fiji June 15-July 31 and Oct. 15-Dec. 10, 1999. This bonus is also available for Air Pacific's newest flights operating in both directions between Los Angeles and Nadi Wednesdays only from June 15 through Dec. 10. During these same time periods, AAdvantage awards on Air Pacific flights between Fiji and North America will also be offered at low introductory rates.

>> More <<
American

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Delta Introduces Amex Platinum SkyMiles Card
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American Express and Delta Air Lines have launched the Platinum Delta SkyMiles credit card from American Express, a co-branded airline card that offers consumers miles-for-purchases, and provides a variety of additional benefits and services, including:

    Free Companion Certificate Each Year Upon Renewal. Cardmembers will receive one free companion ticket on Delta Air Lines every year the card is renewed.

    10,000 Bonus SkyMiles Plus 5,000 Base Miles. New cardmembers receive up to 10,000 SkyMiles plus 5,000 base miles upon using the card for the first time. Base miles are SkyMiles that represent actual miles flown on Delta (rather than dollars spent.) Customers who earn 25,000 base miles achieve Medallion Status which delivers additional benefits including preferred boarding and seating, ticket upgrades, priority on waiting lists.

    10,000 Base Miles Each Year. 10,000 base miles will be awarded to cardmembers every year their annual card spending reaches $25,000 or more in purchases.

    Double Your Miles On Every Delta Purchase. A 100% mileage bonus (two SkyMiles per dollar) for every dollar charged for purchases of Delta Air Lines tickets or Delta Vacation packages.

    American Express Card Benefits. Cardmembers will enjoy American Express Card benefits such as Global Assist

    Hotline, Car Rental Loss and Damage Insurance, Travel Accident Insurance, and Year End Summary.

The Platinum Delta SkyMiles credit card has an annual fee of $135. The fee is $80 for cardmembers who also carry an American Express Personal Card, Gold Card or Platinum Card account issued in their names. The interest rate for purchases is prime plus 9.99% which would result today in an APR of 17.74%.

>> More <<
o For more information or to apply for the Platinum Delta SkyMiles Credit Card call 1-800-223-7583.
o Amex
o Delta

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ClickRewards Summer Offers
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ClickRewards has a few special offers for the summer period, including bonus ClickMiles for online purchases at the Gap, HBO and the Disney Store Online.

For example, ClickRewards and Gap Online are offering 100 bonus ClickMiles for every merchandise purchase over $75 made at the Gap, GapKids, and babyGap online stores through July 31st. You'll also earn one ClickMile for every dollar you spend.

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ClickRewards

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Delta SkyMiles for Investment E-Zine Subscribers
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If you're an investor (and these days, who isn't?), Absolute Investments Webzine is offering Delta SkyMiles to both new and existing subscribers. Check Absolute's website for details.

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Absolute Investments

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E*TRADE: "Tell a Friend"
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E*TRADE has discovered frequent flyer programs... and it apparently likes what it sees.

The online brokerage announced it has extended its airline mileage promotion, launched in January 1999, through an agreement with United Airlines. Under the extended program, E*TRADE customers who refer a friend to E*TRADE receive 5,000 United Airlines Mileage Plus miles -- per friend -- when the friend opens a new E*TRADE account.

As part of the program, the "Tell-A-Friend" promotion gives current E*TRADE customers an opportunity to earn up to 50,000 Mileage Plus miles per year. In addition, the friend opening the new E*TRADE account can earn up to 25,000 Mileage Plus miles, depending on the size of the initial deposit.

Available only to E*TRADE customers through the Destination E*TRADE web site, this promotion targets the self-directed investors that are E*TRADE's core customers.

According to Media Metrix, for the month of April 1999, the Destination E*TRADE web site had an Internet reach that exceeded the combined reach of the Charles Schwab and Ameritrade sites.

>> More <<
E*TRADE

<< S T E A L S & D E A L S >>

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At BA: Buy one, Get One Free
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British Air is calling its summer promotion "the double exposure deal of the year."

British Airways is offering a free roundtrip ticket to London with each roundtrip economy ticket purchased before June 30.
The offer is good for anyone that purchases a roundtrip economy ticket for summer travel, June 22 through Sept. 30. The free second ticket may be used anytime between Nov. 1, 1999, and March 31, 2000, except for Dec. 15 through Jan. 15, 2000.

These buy one, get one free air fares are good to London from any one of British Airways 22 gateways in the USA. Sample roundtrip fares to London are: $598 from New York, Philadelphia and Boston; $638 from Baltimore or Washington, D.C.; $698 from Miami; $778 from Detroit, Dallas/Ft. Worth or Houston; $798 from Los Angeles and San Francisco.

Tickets must be booked seven days in advance and paid for within 48 hours of booking; they must be purchased by June 30. Minimum stay is one Saturday night and maximum stay is one month. Summer travel is valid only for June 22 through Sept. 30. Tickets are non-transferable and government fees and taxes are the responsibility of each passenger.

Passengers traveling on this special fare are enrolled in British Airways Executive Club. Upon their return from London, they will be sent information by the Executive Club on redeeming their free winter-time return ticket to London.

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British Air online

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American Has a Summer Europe Promo, Too
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American Airlines AAdvantage members who purchase an economy class ticket for a round-trip between the U.S. and London June 18 through June 30 for travel between June 22 and Sept. 30 will receive an award certificate for a free economy class ticket to London.

The free ticket is valid for use between Nov. 1, 1999, and March 31, 2000, with travel excluded between Dec. 15 and Jan. 15. The promotion is available from 22 U.S. cities, including New York, Newark, Boston, Chicago, Dallas/Fort Worth and Miami. To qualify, customers must register through AAdvantage DIAL-IN at 1-800-882-8880 (enter promotion code USLON) by June 30.

The seven-day advance purchase fare from New York to London is currently $598, and the seven-day advance purchase fare from Chicago to London is $768. A Saturday night stay is required.

In addition, AAdvantage members will have the opportunity to earn double miles for each roundtrip flight in First Class or Business Class between the U.S. and Europe June 18 through Sept. 7, 1999. To qualify for this promotion, customers must also register through AAdvantage DIAL-IN (enter promotion code DBEUR).

>> More <<
American's website

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Lufthansa's Online Auction
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Lufthansa has its own version of the wildly popular online auction, with monthly offerings listed on its website.

The current auction is all but over (June 17 & 18, 1999). But it's worth a look for now, and perhaps a return visit for next month's bidding.

According to Lufthansa's announcement: "Bid on many popular travel destinations. Who can resist the charm of Munich, Venice, Rome, Florence or Paris? Or maybe you are up for an exotic destination like Johannesburg, Tel Aviv or Singapore... But not only that, you can also bid for a one week car rental with Sixt.

"How about cruising the Autobahn in a Mercedes, Audi or BMW? Pick up your car in Germany and explore the sites of Europe in luxury. Sixt rent a car is offering 7-day rentals including unlimited mileage and Collision Damage Waiver.

"Choose where you want to go and what you want to pay for it. Bids begin at $10 per item."

Let us know if you manage to get a ticket (ANY ticket) for $10. And do take care not to get sucked into the insidious bidding wars that result in over- rather than underpaying. (In a good-faith effort to prevent auction fever, Lufthansa will stop the bidding when the published fare is reached. Consumers should bear in mind, though, that the published tariff is often higher than the street price and is therefore not a good "value" benchmark.)

>> More <<
Lufthansa's June auction

<< I N D U S T R Y N E W S >>

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Happy Birthday, Delta
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On June 17, 1929--70 years ago today--Delta's very first passenger flight departed Love Field at 8 a.m., bringing Dallas its first air link to the east on a route that stretched to Jackson, Mississippi, with stops at Shreveport and Monroe, Louisiana. Today, Delta marks the 70th anniversary of that first passenger flight as the Travel Air again took off from Love Field at 8 a.m., flying its original route.

The Travel Air plane was advertised as the "limousine of the skies" by its manufacturer, and Delta used its special features to sell air travel to early passengers. The plane featured wicker chairs equipped with hand holds, rather than seat belts.

Powered by a 300-horsepower Wright J6 engine, the Travel Air Model 600B could carry 150 pounds of baggage with the five-passengers and a pilot.

The inauguration of passenger service represented a bold step financially for Delta. The route was operated without the benefit of an air mail contract with the federal government and revenue from airmail was needed to supplement passenger revenues. In spite of this uncertainty, Delta's service did relatively well during those early months, and Delta expanded its route map eastward to Birmingham in September 1929 and westward to Fort Worth in 1930.

Since that day 70 years ago, Delta has grown to become one of the largest airlines in the world, flying to 190 destinations in 32 countries with more than 2,600 flights a day.

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E-Tickets Go Interline
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American Airlines and Canadian Airlines today became the first airlines to implement technology that allows the two carriers to issue electronic interline tickets on each other.

The capability will give customers the added convenience of being able to use electronic tickets when their itinerary includes travel on both American and Canadian, or on codeshared flights operated by either carrier (this capability includes American Eagle as well as Canadian's regional affiliates). It will also allow customers to use electronic tickets issued by one carrier on the other carrier without re-issuing a paper ticket.

American pointed out that the technology that allows electronic ticket interline capability with Canadian will serve as the foundation for the development of this feature with other oneworld alliance partners in the future. American also has a separate, but similar, project underway with United Airlines.

Electronic interline tickets can now be issued by American and Canadian through their reservations departments, airport and city ticket offices, or through the airline web sites on the Internet. American is also working on technology that will allow computer reservations systems used by travel agents to issue electronic interline tickets in the future.

American last year became the first airline to implement electronic ticketing capability for its entire worldwide system, bringing the convenience of electronic tickets to the 44 countries served by American and its regional airline affiliate, American Eagle.

>> More <<
o American
o Canadian

<< M I S C E L L A N Y >>

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Children Flying Solo
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Millions of children travel alone each year -- with the summer season being a particularly busy time. As children head off to camp or trips to Grandma's, Fodor's Travel Publications and the American Society of Travel Agents (ASTA) offer some tips on how to make the journey fun, exciting and an event to remember.

>> Planning Ahead Can Go a Long Way

    -- Book a morning flight. If it is delayed or canceled, you have the rest of the day to make alternate plans.
    -- Book a non-stop flight. If one is not available, a good travel agent will ensure the most convenient connection at the best value.
    -- Ask your travel agent about the Airline escort programs for children traveling alone
    -- Get to the airport early to ease check-in and get children accustomed to the surroundings.
    -- Sit quietly and review every step of the trip... what to expect on the plane, movies, food and the necessities (the lavatory is the bathroom!).

>> Make It Fun For the Children

    -- Book a "seat with a view" and don't forget to ask if food service is available... you may want to pack a lunch.
    -- Pack a new book or toy as a surprise. Little hidden notes from you or family photos can also help ease anxiety.
    -- Make a game of the meeting process. Create a two-piece puzzle out of the children's latest pictures. They carry one piece and the person meeting them the other. When the two pieces meet -- they know they have met the right person! The airline escort will ask the person greeting your children to sign a release form.
    -- Pack a one-time-use camera and ask them to take pictures of the trip so you can share in their memories.

>> Safety Is Number One

    -- Remind children to be careful -- don't talk to strangers but also reassure them that they can go to someone in uniform for assistance.
    -- Give them a picture of the person meeting them -- with the full name, address and phone number written on the back.
    -- Give them a phone number where you can be reached during the travel day in case there are any problems.

>> More <<
ASTA
Fodors

Until next week...