U P F R O N T

The Freedom to Move About the Country
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Tomorrow, July 4, is Independence Day in the U.S., a national holiday commemorating the adoption of the Declaration of Independence on that day in 1776. In recognition of the fact that many of our subscribers will -- hopefully! -- be putting family, friends and barbecue ahead of e-mail, this is a bare-bones issue of the Crier. We'll get back to our usual miles and points coverage next week.

One semi-ponderous thought, though, related to the holiday theme...

Second only to freedom of speech and religion, the freedom to travel is perhaps the most profound of the freedoms this country's founders pursued and, sometimes, died for.

It's now part of the country's DNA, and we take it for granted. As a memorable Southwest ad puts it: "You are now free to move about the country." But on this Independence Day -- more than at any other point in my lifetime -- that freedom seems in danger of wilting under the twin clouds of terrorism and instability within the airline industry itself.

These, I have to remind myself, are "mere" practical matters. Yes, the lines can be tortuous, the security pat-downs exasperating, the terminal evacuations unnerving. And if 1 or more larger U.S. airlines drown in their own red ink, the prospect of achieving any real civility in our civil-aviation system will indeed be bleak. But our fundamental right to travel remains, so far, unaffected.

And that's what I'll be celebrating on the 4th. But even as I offer up my thanks for this freedom-in-principle, I will be hoping that the reality of travel, the real-life gut-churning experience of getting from point A to point B, can be transformed into something less punishing, more tolerable, than what it has become.

Best wishes to all for a safe and happy week. And if you happen to be traveling, hold your nose and count your blessings.

United Lines Up Behind US Airways for Fed Handout
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Late last week, with the June 28 deadline looming large, United added its name to the list of airlines which have petitioned the Air Transportation Stabilization Board (ATSB) for federal loan guarantees, earmarked for carriers needing assistance to recover from the effects of 9/11.

United has requested $1.8 billion in guarantees, the most of any airline and twice the amount requested by US Airways.

A key ATSB condition for granting loan guarantees is a viable recovery plan, including cost savings from wage cuts. Accordingly, both US Airways and United have warned that bankruptcy would have to be considered if concessions and loan guarantees are not forthcoming.

While United's pilots have agreed to take pay cuts and relax work rules, the carrier's 26,000 flight attendants so far have taken a hard line on concessions, complaining that their compensation already falls below the industry average.

US Airways has reached a tentative agreement with its flight attendants on salary and work-rule concessions aimed at reducing the company's onerous operating expenses. But negotiations designed to secure similar savings from US Airways' pilots reached a stalemate over the weekend, and no further talks are scheduled.

If you're keeping score, by Friday's deadline, 13 carriers had applied for loan guarantees, with the following results to date:

The ATSB to its credit maintains a website (link below), which includes a chronology of loan-guarantee applications, decisions and other key events, and the text of Board rulings.

> More...

Until next week...