Independence Day

Best wishes to all our U.S. subscribers for a happy and relaxing July 4th holiday.

If you're manifesting your Independence by flying over the holiday weekend, be prepared for long lines and full flights. Load factors have been running at record levels so far this summer, and should approach 100% at the beginning and end of the July 4th weekend.

Plan on arriving at the airport extra-early. And have a back-up plan in mind in case your customary airport parking lot is already full when you arrive.

And hey, let's be careful out there.

This Week's Travel Industry Newsbites

On Friday, the House of Representatives passed legislation that would appear to block bankrupt United from defaulting on its pension liabilities and transferring them to the Pension Guaranty Benefit Corp (PBGC).

The legislation, an amendment to a spending bill, still has to get through the Senate and be signed into law by President Bush.

But even if enacted, the law is not expected to affect United's restructuring since it only constrains the use of federal funds, while the PBGC's funds come from corporations.

Whatever its practical effects, the move is a clear rebuke to United and a shot across the bow of other U.S. carriers which may be considering following the lead of United and US Airways, both of which offloaded pension obligations while in bankruptcy.

Also on Friday, the Department of Justice approved America West's plan to acquire US Airways, a key milestone on the road to the merger of the 2 carriers, and perhaps US Air's last best hope of long-term survival.

Approvals still to be secured: America West shareholders, US Air creditors and the court overseeing US Air's bankruptcy, and the Air Transportation Stabilization Board, a guarantor of loans to both carriers.

In the airline industry's first spinoff of an airline mileage program, ACE Aviation Holdings, parent company of Air Canada, has sold a 12.5% stake in the Aeroplan frequent flyer program.

The IPO raised CAD$250 million (USD$203 million), effectively valuing Aeroplan Limited Partnership at CAD$2 billion.

Aeroplan has about 5 million members, partner tie-ups with more than 60 companies and reported revenues of CAD$509 million in 2004.

To the cash-starved U.S. airlines, the temptation to follow in ACE's footsteps must be all but overwhelming.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, Gary Steiger provides a heads-up on the scheduled end to MCI's relationship with Northwest and reflects on the demise of phone miles: "Now of the big 3 only Sprint will offer miles, and I wonder whether or not they will continue this program to maintain a competitive advantage. It is both sad to see the offers go. We certainly took maximum advantage of them, didn't we?." See "Miles & Points" below for details.

In the "Hotel Programs" Forum, willymy reports on a 5-night stay (part award, part paid) at the Beverly Hilton: "Great stay and would recommend the hotel to all."

And in the "Miscellaneous Travel Topics" Forum, Max Bialystock shouts out about the "destination marketing fee" now being charged by some Canadian hotels: "This fee is miniscule on an individual basis, but collectively, it surely is producing millions of dollars. The fee is not uniformly being charged everywhere throughout Canada---YET. After inquiring, I was told that it is NOT A GOVERNMENT-IMPOSED TAX. It is a fee which Chambers of Commerce or some such tourism industry decision-making body summarily decided to impose upon hotel guests."

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

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Rescue Expired AAdvantage Miles (for a Price)

Between June 27 and Dec. 31, AAdvantage members may reactivate expired miles earned after Dec. 31, 2002.

It will come as no surprise that there's a price to be paid for this: $50 for every 5,000 miles revived, plus a $30 processing fee. So the cost to reactivate 25,000 miles, enough for an entry-level award ticket, would be a hefty $280, enough to buy an advance-purchase coach ticket on many routes. And a revenue ticket would not be subject to the onerous capacity controls that make award tickets such a hit-and-miss proposition.

As is so often the case these days with loyalty program initiatives, this has the stench of financial desperation about it -- 1 part convenience, 2 parts gouging.

Comments?

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American Doubles Miles for DFW-Toledo Flights

Through Aug. 31, AAdvantage members will earn double miles on American Eagle's new nonstop flights between Dallas/Fort Worth and Toledo.

Register before flying using Promotion Code TOL2X.

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Earn American Miles for Water

Through Sept. 30, 2006, AAdvantage members will earn 500 bonus miles for every 5 specially marked 15-packs of Dannon Natural Spring Water.

To receive the miles, members must submit 1 Redemption Certificate along with a minimum of 5 and a maximum of 50 Proofs of Purchase per envelope to Dannon American Airlines Promotion, P.O. Box 619043, DFW Airport, TX 75261-9043. Submissions must be received by Oct. 7, 2006.

There's a limit of 100,000 bonus miles per member that may be earned through this promotion.

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Conrad Stays Earn Double Airline Miles

Between July 1 and Aug. 31, stays at participating Conrad hotels and resorts will earn double miles in the programs of 13 airline programs, including American, Delta, Northwest, United and US Airways. Also on offer: a complimentary room upgrade (subject to availability at time of check-in).

To be eligible for the bonus, bookings must be made online at ConradHotels.com.

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Continental to Shut Door on iDine Hotel Program

On July 1, the OnePass Hotel program by iDine will be discontinued.

OnePass members who have booked an advance reservation through the program and have not yet completed their stay by July 1 needn't worry -- their reservations are still valid and mileage will still be credited to their accounts.

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Frontier Offers Elite Members More Award Options

Elite members of Frontier's EarlyReturns program can now use their miles to buy or bid for "lifestyle oriented merchandise" at the newly opened online More Store.

There are currently products and services from more than 35 companies on offer, from jewelry to restaurant meals to golf outings.

As a point of reference, 3,000 miles can be redeemed for $50 gift certificates good for use at a number of upscale Denver-area restaurants. That amounts to a per-mile value of 1.7 cents, solid if unexceptional value. With items offered via auction, the value-per-mile will obviously depend on how high the bidding goes.

Basically, Frontier has taken Continental's OnePass auction, added a selection of items for sale outright, and limited the entire package to elite members.

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"Invest While You Rest" at Jameson Inns

Beginning July 1, Atlanta-based Jameson Inns will offer loyal customers shares of company stock through its new frequent-stay program, Jameson Stock Awards.

The program's tagline: "Now you can be more than a guest. You can be an owner."

Customers who stay at any Jameson Inn or Signature Inn for 3 nights during a 12-month period will receive 10% of their room charges in the form of Jameson stock. Additional shares can be purchased direct from Jameson with no commission.

Jameson operates 123 inns in 13 states.

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MCI Will Cut Connection with Northwest

Effective July 31, MCI will no longer offer Northwest miles to new customers.

WorldPerks members have until July 14 to sign up for MCI service and still earn 5,000 bonus miles plus 5 miles for every $1 spent through July 31, 2006.

Current MCI customers participating in the WorldPerks program will continue to earn miles through July 2006.

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HOU Hilton Stays Earn Double Southwest Credit

Through Aug. 31, Southwest Rapid Rewards members will earn double credit for stays at participating Hilton Family hotels in Houston.

To participate, Rapid Rewards members should visit southwest.com and choose the Double Credit rate when booking on southwest.com; or, when booking via hiltonfamily.com, request the Double Credit offer (Plan Code H7 at Hilton and Hilton Garden Inn hotels, or Plan Code HH7 at Doubletree, Embassy Suites, or Homewood Suites).

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Bonus United Miles for National Car Rentals

Through Dec. 31, United Mileage Plus members can earn 500 bonus miles plus a complimentary upgrade when renting a compact through midsize car for 3-14 days at participating National locations in the United States or Canada. Rental must include a Saturday night.

To receive the bonus, book online at www.nationalcar.com or call 1-800-CAR-RENT and cite Contract ID 5001572 and Coupon ID 10009641.

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Deal Alert from SmarterTravel.com

1) Caribbean and Bermuda Fares on American from $218

American's Caribbean and Bermuda sale fares start at $218 roundtrip for travel during the late summer and fall. Destinations include The Bahamas, Bermuda, and Jamaica.

Departures are valid Mondays through Thursdays from Aug. 29 through Nov. 11. Travel must be completed by Dec. 11. Book tickets at least 3 days in advance. American has not listed a booking deadline. Fares require a Saturday-night stay, and the maximum stay is 30 days.

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2) Mexico Sale Fares on Delta from $290

Delta is introducing service between Salt Lake City and Puerto Vallarta. To promote the new route, the airline is offering sale fares from several cities in the western U.S. to Puerto Vallarta for travel this fall and winter. Prices start at $290 roundtrip.

Travel is valid Mondays through Thursdays from Nov. 1, 2005, through Mar. 31, 2006. Book tickets by July 6. Fares require a 3-day minimum stay, and the maximum stay is 30 days.

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Win 1 Million AAdvantage Miles + 2 Million HHonors Points

Unlike the sweepstakes usually featured in this space, this week's offering is a contest. The difference? In sweepstakes, winners are chosen at random; contests are judged, so entries are evaluated and winners picked on their merits. In this case, the potential rewards are worth the considerable effort required.

The grand prize of the American Way Ultimate Road Warrior search is 1 million AAdvantage miles and 2 million Hilton HHonors points. There are lesser prizes as well, including laptop computers and consumer electronics.

To enter -- and here's where the effort comes in -- submit essays (3 of them, plus answers to 2 bonus questions) making the case that you are the ultimate road warrior.

Entry deadline: July 14.

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