This Week's Travel Industry Newsbites

USA Today is reporting that a scam artist took advantage of a vulnerability in the Qantas reservations system to steal more than $600,000 worth of frequent flyer miles.

Over a 6-year period, the Singapore Airlines employee is alleged to have illegitimately appropriated 16 million miles, squirreling them away in a host of bogus accounts. He then redeemed the miles for award tickets, which were sold to friends and family members.

According to the culprit's statement to police, it was "quite easy."

Continental has applied to the National Mediation Board to appointment a federal mediator to broker negotiations with the airline's flight attendant union, the International Association of Machinists and Aerospace Workers (IAM).

The primary points of contention: pension security and vacation time.

After years of teetering on the edge of insolvency and amassing more than $4 billion in debt, Brazilian carrier Varig last week filed for protection under that country's bankruptcy laws. The filing follows the termination of discussions which could have resulted in Portuguese airline TAP taking a 20% stake in Varig.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, Dr. J finds himself stymied in his efforts to find WorldPerks award seats to Africa: "On their website, even looking way out in next May (which I wouldn't think would be a terribly busy season) for tickets Chicago to Nairobi or Killimanjaro (Tanzania), every day I check (and 3 days either side), the best offer I got was their rule buster of 180K miles for coach and many days were 210k (one way 1st class)."

Also in the "Airline Programs" Forum, dcrandall shares a success story in redeeming Continental miles, concluding as follows: "[I]f you want an award seat do your homework, know as much as possible about alternate routes, partner airlines, and most of all, be flexible. By working with the agent and offering suggestions I didn't place all the responsibility on her to find me a seat. She appreciated my help, and together we got the exact travel dates I wanted."

In the "Credit Card Programs" Forum, carlinrob provides a heads-up for Chase Platinum cardholders: "As I suspected, Chase sent me a new 'improved' award brochure indicating that my Chase Platinum card was going to offer better opportunities....after reading the fine print, I realize that it would take 5,000 more points to earn a free ticket on Chase using Continental Airlines."

And much more. Questions, answers? Post them to the Forum!

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Alaska Discounts Summer Award Travel

Mileage Plan members can redeem 7,000 fewer miles -- 13,000 instead of the 20,000 normally required -- for Coach Saver award travel on selected routes between June 15 and Sept. 1. Travel between July 1-5 is blacked out.

Discount applies to award travel on the following routes: Seattle and Calgary, Montana or Sun Valley; Portland and Montana.

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Alaska Extends Holland America Offer

Alaska has extended through June 30 the miles-plus-cash offer for Holland America cruises.

Mileage Plan members can redeem miles to receive a discount on Glacier Discovery Alaska cruises with Holland America. Discount can be applied toward any of 20 sailings between July and September.

Discounted rates are offered for 20,000 miles per person, 40,000 miles per cabin.

To use miles for the discount, bookings must be made by phone: 1-800-820-2816.

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American Bonus for Sandals/Beaches Resort Stays

AAdvantage members who book a Sandals or Beaches vacation of 5 or more nights at AAVacations.com will receive an 11,000-mile bonus.

To qualify for the bonus, make reservations by July 3 for travel between Aug. 20 and Dec. 20.

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Delta Blacks Out Summer Award Travel on AF, KL

According to Delta's website: "Update: As a result of high Award Travel requests during the peak summer travel season, we are no longer accepting award reservation requests for travel on Air France and KLM for the travel period June 1 through August 31, 2005."

No summer award travel on 2 airlines which, via the SkyTeam alliance, are among Delta's closest partners? That simply, and unacceptably, breaks faith with SkyMiles members and gives the lie to the program's promise to them. As the site proclaims elsewhere: "You worked hard to earn your miles. Now it's time for your bonus."

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GlobalPass, the Sequel

GlobalPass began life as LatinPass, a loyalty program consortium featuring Latin American airlines, none of which individually had the size or scope to compete against the mileage programs of the U.S. mega-carriers.

LatinPass evolved into GlobalPass, an online program featuring an unlikely collection of LatinPass leftovers: Aeropostal, Grupo TACA and KLM.

Beginning July 1, GolbalPass will reinvent itself as yet another species of program altogether, allowing travelers to earn GlobalMiles for tickets purchased on the GlobalPass website for travel on any of 500 airlines, for stays at several hotel chains and for purchases at a network of 300 online retailers. GlobalMiles can then be redeemed for award tickets, which the program purchases on the member's behalf.

It's not a bad idea in some respects. In particular, the ability to earn and redeem on almost any airline, and to bypass onerous capacity restrictions on awards, are welcome benefits.

But insofar as it differs from the model consumers understand and embrace, and insofar it is inherently more complicated than mainstream programs, it will be a tough communications job to sell GlobalPass to travelers already vested in traditional airline and hotel programs.

And then there's the value proposition. Members earn 4 GlobalMiles for every $1 spent on airline tickets. Assuming a ticket price of $300 for both earning and redemption, a traveler would have to purchase 35 tickets before earning the 42,000 GlobalMiles required to redeem for a $300 award ticket.

That's not particularly compelling in its own right. But since any GlobalPass earnings are in addition to (but not combinable with) miles or points earned in a member's airline or hotel program, it can be a worthwhile supplement to one's normal earning activity.

Those with miles earned during the LatinPass days have until June 30 to redeem them under the current scheme. Thereafter, for every mile they wish to redeem, they will have to earn 1 GlobalMile in the new program.

Effectively holding LatinPass miles hostage to the new program is a decidedly customer-unfriendly tactic, which GlobalPass would do well to reconsider.

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JetBlue Will Offer TrueBlue Credit Card

Later this summer, JetBlue will roll out a co-branded TrueBlue credit card, issued by American Express.

Cardholders will earn Award Dollars which convert to TrueBlue points at an as-yet unspecified rate. Also still to be determined: the card's annual fee and percentage rate.

Holders of Amex cards linked to the Membership Rewards program can already exchange their Membership Rewards points for TrueBlue points (250 Amex points = 1 JetBlue point, with a minimum transfer of 1,250 Amex points).

So the new card will present consumers with a choice: use the new co-branded card to earn more TrueBlue points, which expire after 12 months; or use the Amex Rewards card to earn Membership Rewards points, which can be extended indefinitely, but which convert into fewer TrueBlue points.

In an interview on CNBC, JetBlue chief David Neeleman made a point of noting that the card would help TrueBlue members earn enough points for an award trip before their points expired. (Like Southwest, JetBlue expires frequent flyer points after just 12 months.)

Which raises the question: why not adopt the industry-standard 36-month expiration schedule for TrueBlue points?

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Northwest Offers Miles for Lounge Memberships

Through Aug. 31, WorldPerks members who purchase WorldClub airport lounge memberships for the first time will earn a 2,500-mile bonus for 1-year subscriptions or a 5,000-mile bonus for 3-year subscriptions.

Use source code SUM05 when enrolling to receive the bonus.

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In addition to the above sign-up bonus, Northwest is offering a refer-a-friend bonus for new lounge memberships. WorldPerks members will earn 1,000 bonus miles for the first new member referred, 2,000 miles for the second referral and 3,000 for the third... for a total of 6,000 bonus miles for 3 referrals.

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Priority Club Discounts Retail, Dining Awards

Through Aug. 15, Priority Club Rewards members can redeem 10% fewer points for retail and dining certificates at a long list of participating partners, including Amazon.com, Circuit City, Macy's, Sharper Image, etc.

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Triple Southwest Points at CHI Hyatts

Rapid Rewards members will earn triple Rapid Rewards credits (1.5 credits instead of standard 0.5 credits) for stays at Chicago-area Hyatt hotels between June 15 and Sept. 15.

To receive the bonus, members should cite offer code SWTPL at check-in and provide a Rapid Rewards account number.

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US Airways Increases Online Booking Bonus

Dividend Miles members will earn 2,500 bonus miles for US Air and US Air Express tickets booked online at usairways.com and flown by Sept. 30.

Registration is required.

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Double US Air Miles for Orlando-Bermuda Flights

Dividend Miles members will earn double miles for all qualifying fares (F, A, Y, B, H, M and V fare classes) on US Airways nonstop flights between Orlando and Bermuda from June 11 through July 31.

Registration is required.

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Deal Alert from SmarterTravel.com

1) AirTran from $39 Each Way, Spirit from $78 Roundtrip

Competing low-cost carriers AirTran and Spirit have both launched 48-hour domestic airfare sales. Destinations include Boston, Chicago, Orlando, Washington, D.C., and other cities around the country. Flights on AirTran start at $39 1-way, while Spirit fares require roundtrip travel and start at $78.

On Spirit, travel is valid on most routes from Wednesday, July 13, through Monday, Dec. 12, on Mondays through Thursdays only. For travel on AirTran, sale fares are available for flights through Tuesday, Nov. 8. Purchase Spirit fares by Thursday, June 23; AirTran fares must be purchased by Wednesday, June 22.

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2) London Fall and Winter Fares from $322

If you're planning a fall or winter trip to London, check the sale at VS (Richard Branson's airline, V. Atlantic) before you book. Prices start at $322 roundtrip, and departures are available from both coasts. Travel at the lowest prices on most routes is valid from Oct. 27 through Dec. 15, and from Dec. 24 to Mar. 8.

Travel on the New York routes is valid from Sept. 1 through Oct. 26, and from Dec. 16 through 23. Travel on the Washington, D.C., route is valid only from Dec. 24 through Mar. 8. Book tickets at least 7 days in advance.

VS has not listed a booking deadline. A Saturday-night minimum stay is required, and the maximum stay is 1 month.

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Win a Trip for 2 to London from British Air

Through July 8, enter British Airways' "Wimbledon Instant Win" sweepstakes for a chance to win a trip for 2 to London, including 4 nights' hotel accommodation and theater tickets. There are also daily instant-win prizes, including rental car in London, theater tickets, tennis rackets and bags.

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[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]