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UP FRONT..........................................................
Who's Preying on Whom?
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In the textbook example of predatory pricing, a large, established company uses its deep pockets to set irrationally low prices and endure them long enough to drive a smaller, financially weaker competitor out of a market, or out of business altogether.
Except that now, for the first time in the history of commercial aviation, the small are the strong and the large are the vulnerable.
So when Southwest and JetBlue recently lowered their fares -- as fuel prices continue rising and the major carriers teeter ever closer to the brink of bankruptcy and liquidation -- even sober-minded microeconomists must wonder if the discounters' real agenda isn't to pare down industry capacity by taking 1 or more of the Big 6 off the board.
"JetBlue Drives United Out of Business"? It could happen.
Good/Bad News from US Airways
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So far, the big news in the latest round of airline earnings reports was US Airways' unexpected $34 million profit for the 2nd quarter (Apr. - June). Sure, the net was inflated by several 1-time items. But like publicity, any profit is a good profit.
The bad news, as US Air chief Bruce Lakefield was quick to point out, is that the 2nd quarter is normally the carrier's strongest, so the rest of the year looks grim. Lakefield warned employees that without further salary concessions, fast, another bankruptcy filing looms large.
In next week's Crier, we'll pull together a quick-view of all the airlines' 2nd-quarter results.
ON SITE...........................................................
FrequentFlier Forum Topics
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As always, there's plenty of activity on the FrequentFlier Forum.
Jo Anne wonders whether she's missing the mileage boat by not switching credit cards periodically to capture the sign-up bonus. Brett is searching for the best miles-for-long-distance deal. Bob wants to know how to calculate the mileage between airports. And much more...
Do you have questions, answers? Post them to the Forum!
-> More: http://frequentflier.com/forum/index.cgi
MILES & POINTS....................................................
More Continental Miles for Bermuda Vacations
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Continental OnePass members will earn 2,500 bonus miles when booking a 5-night Bermuda package from Continental Airlines Vacations by Aug. 31, for travel from Aug. 1 through Dec. 15.
-> More: http://continental.covacations.com/onePass.aspx?sssdmh=dm24.56173
Double Miles for Continental/Amtrak
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Between Aug. 1 and Sept. 30, OnePass members will earn double miles on the train portion of Continental/Amtrak codeshare itineraries between Newark International Airport, and New Haven Rail Station, Stamford Rail Station (CT), Philadelphia 30th Street Station, or Wilmington Rail Station (DE). Train segments must be ticketed as Continental.
Registration is required, using Promotion Code 55092.
-> More: http://continental.com/onepass/news/continental/co_20040707_01.asp
Double SkyMiles for Cincinnati-Sioux Falls Flights
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Between July 29 and Sept. 30, SkyMiles members will earn double miles on nonstop Delta Connection/Comair flights between Cincinnati (CVG) and Sioux Falls (FSD).
Registration is required.
-> More: http://delta.com/deltaoffers
Hertz Increases Mileage Rewards for 5-Day Rentals
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Hertz rentals of 5 or more days now earn 500 miles in the following airlines' programs: Alaska, Continental, Delta, Midwest and United.
The normal 50-miles-per-day rate still applies to rentals of 1 to 4 days.
-> More: http://hertz.com
LANPASS Is New Marriott Rewards Partner
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LANPASS is Marriott Rewards' 25th airline frequent flyer program partner, offering members up to 3 miles (converted to kilometers) per $1 spent at participating Marriott Rewards brands.
-> More: http://marriott.com/rewards/rewards.mi
Double Dividend Miles to the Caribbean, etc.
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Dividend Miles members will earn double miles for US Airways or US Airways Express flights to the Caribbean, Latin America, the Bahamas or Bermuda when tickets are purchased at usairways.com before Aug. 7 and travel is completed by Nov. 15.
Registration is required.
-> More: http://www.usairways.com/dividendmiles/8945.htm
STEALS & DEALS....................................................
Deal Alert from SmarterLiving.com
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1) Hawaii from $278
Hawaiian is offering Hawaii sale fares starting at $278 roundtrip from the West Coast. Departures are valid from Aug. 23 through Sept. 30. Oct., Nov., and Dec. departures are also available at slightly higher prices.
Hawaiian has not listed a booking deadline, so these fares could disappear at any time.
-> More: http://www.smarterliving.com/air/deal.php?id=6633
2) Florida Fares on Song from $49
Song is offering Florida sale fares starting at $49 1-way from Boston or New York. Destinations include Ft. Lauderdale, Orlando, West Palm Beach, and more, and departures are valid from Sept. 7 through Dec. 15. Fares may be combined for roundtrip travel.
Book tickets at least 14 days in advance, and by Thursday, July 29.
-> More: http://www.smarterliving.com/air/deal.php?id=6997
SWEEPS & FREEBIES.................................................
La Quinta Is Giving Away Hotel Nights
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Win a free night at La Quinta in the hotel's American Road Trip Instant-Win Game.
To enter, fill out the online form and play the game.
-> More: http://clients.eprize.net/laquinta/roadtrip/
READER RANTS & RAVES..............................................
Feedback from the Frontlines of Travel
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"Both my fourteen year old son and I are Silver Elite passengers on Continental and have been so every year since 2000. In fact, I have made certain that we fly Continental or its partners whenever the possibility exists.
"In the past we were almost always rewarded with upgrades to 1st class on domestic flights. And even though our vegetarian meal was meager in comparison to what the others in 1st class were served, it was nice to eat on a plate rather than out of a box.
"Then the upgrades seemed to dry up. Now we're lucky if we get upgraded on 1/3 of the trips we take.
"Then the vegetarian meals dried up. Even when upgraded to 1st class, it's usually only a day before the flight which means that a vegetarian meal isn't on the flight.
"Now the ultimate disgrace. I have a meager 280,000 miles and my son has about 240,000. I purchased two tickets at Continental.COM for flights from San Diego to Denpasar, Bali with the idea that for the first time we would use our miles to upgrade to BusinessFirst. Of course, I could have tried to get a free flight, but then we wouldn't be earning miles toward elite status for next year. To fly Continental, I paid about $500 more per ticket than I could have paid on a competing airline, again, because I wanted to use my miles for an upgrade. Upon calling the OnePass center I learned that to use our miles for the upgrades we would need to fork over 50,000 miles each AND pay an additional $700 per person, and one of the longer legs had no seats available.
"What good are miles if they are going to charge you to use them?" (Gyan)
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"Beware of American Express and Hilton HHonors.
"Earlier this year I received a solicitation from Amex/Hilton to open a new card in return for 10,000 points. I did and never received the points. After numerous calls someone finally fessed up that I could only receive the bonus once and that I received it in year 2000.
"It sure didn't state that on their offer, and if so, why send an existing card holder another application. I'm cutting up that card.
"Marriott on the other hand did the same thing and honored their commitment and offer.
"Thanks Marriott and Visa and So long Hilton and Amex." (John)
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"I travel all too frequently and always use Hertz for car rental. I like their awards program, and generally their cars are decent. However, I have learned of a sneaky game they are playing with car availability.
"In anticipation of a recent day trip to Nashville, I called up Hertz and requested a one day rental. I was informed that they were sold out, but I could try back later (I was leaving that day). I thought this was odd as I had not been blocked out of a rental in years, so I checked online. Same story: sold out of every car. But wait, what if instead of typing in a return date of the next day, I type in a return date of the next week. Surprise! Cars are available...any car. I booked it, returned the car the next day, and paid I think a slightly higher rate than was quoted for the week ($64 instead of $55/day).
"What I surmise is that Hertz says instead of renting to these one day folks at the end of the week (my rental was Thurs.-Fri.), let's hold our inventory for folks who take on weekend rentals. Very sneaky. I suspect I have not run into this before b/c I typically travel starting Monday or Tuesday." (James)
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[In reference to last week's note from Tom seeking a website with seating charts...]
"The website for seats is: seatguru.com. While it doesn't list ALL the airlines, it does a good job of getting the most popular airlines, and even the seats where it's more comfortable(?), or it will tell you if you are a wedgie. Try it, it's fun." (Pat - Hawaii)
"The only place I've seen anything like the seating chart Tom from Silver Spring is asking about was on the American Airlines site. If memory serves you could look at the seat chart and pick your seats from what was available (already booked seats were blacked out) only after you had guaranteed your flight plans with the purchase of a ticket. I don't recall if it specifically related to frequent flyer seating." (DLG)
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"I relate completely to Susan in Anchorage, Alaska. I live on Kauai & expecting a discounted flight from here would be truly unrealistic, however, there is a place a short flight away called Honolulu. This is another location you never see included in any of the super discounted offers. Is there a similar newsletter for Hawaii to the one referenced for Alaska?" (Lyn)
[Lyn refers to Susan's lament in last week's newsletter about the lack of promotions and deals for Alaska residents. While there is a good source for Alaska deals, which we referenced, I know of nothing comparable for Hawaii. Anyone?]
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"I just received a letter from Alaska Airlines Mileage Plan dated July 19, 2004. The purpose of the letter is to alert me that Alaska is eliminating the two First Class Upgrade coupons that I receive each year as an Alaska Airlines Visa Platinum cardholder. The reason given is that the coupons "have not been useful to a large number of [cardholders] due to limited space available in the First Class cabin." While I'm sure this is true for many cardholders, especially infrequent fliers like me (I was finally able to use my two coupons earlier this year, the first time in three years), this is nevertheless a takeaway. Alaska said it will still be providing the $50 Companion Certificate and 2,000 Anniversary Bonus Miles for the annual renewal. No mention was made as to whether or not the cost of the Platinum card ($75 per year) will be going down because of this takeaway.
"Some brief comments on the rants from Matt in the July 21, 2004 newsletter. As a long-time passenger on Alaska, if I have carry-on luggage, I try to avoid a flight scheduled with an MD-80 aircraft. The MD-80 is a much narrower fuselage (five seats, shallower overhead bins) that the 737 that Alaska also uses (six seats, deep overhead bins).
"Also, two months ago, Alaska abandoned loading planes from the rear. Now, after loading children, the infirm, first class, and VIPs, the rest of us are invited to all push for the gate. If it's a full flight and I have carry-on luggage, I position myself to board as soon as possible so I will hopefully get the overhead bin above my seat. Otherwise, the inconvenience Matt noted will happen even on the more capacious 737.
"Finally, if Matt doesn't like reclining seats in his face, there's a simple solution. He should sit in a window exit row. On the smaller aircraft (MD-80, 737) the seats in front of the window row never recline." (David)
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"My son and I like to fly but airline designers are out of touch. My son is 22 years old and 6'8" and about 340 pounds and wears size 18EEE shoes (no...he doesn't play football or basketball). Every time we fly the only seat that is available to fit his size is the one by the emergency exit. Otherwise he has to sit like an very deflated accordion. (The flight from Newark to San Francisco was pure hell.) On another flight he had to sit in the aisle seat to stretch out his long legs. Can you imagine what happened when it came time for the attendants to serve snacks, meals, or just having them to go about their responsibilities? One airline told me that the only other alternative was for him to pay for two seats or hope that someone in the seat next to him cancels. On a United connecting commuter flight from Atlanta to Alabama my son had to stoop over just to walk into the cabin (he was 8 inches taller than the height of the cabin) and another passenger graciously allowed me to sit next to her when it became oh so very obvious that my son could not fit in his assigned seat and had one hell of a time trying to fasten his seat belt.
"Today's jets may be built as wide bodied jets but its seats are not designed for very tall or wide bodied passengers." (Mary)
If you have a rant or a rave, e-mail us at rants@frequentflier.com.
Until next week...
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