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UP FRONT..........................................................
Airlines Report 2nd-Quarter Results
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The 2nd quarter was another mixed financial bag for the airlines. Although the general theme of discounters outperforming legacy carriers persisted, all carriers -- with the exception of United and US Air -- reported lower profits or greater losses than in the year-ago period.
Airline Q2 Profit/(Loss)*
2004 2003
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AirTran $17 $57
Alaska ($2) $45
American $6 ($75)
America West $6 $80
ATA N/A
Continental ($17) $79
Delta ($1963) $184
Frontier ($7) $11
Independence ($27) $46**
JetBlue $21 $38
Midwest Express ($3) $4
Northwest ($175) $227
Southwest $113 $246
United ($247) ($623)
US Airways $34 $13
* millions
** As Atlantic Coast Airlines
Industry Newsbites (Signs of the Times)
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As of today, the parent company of Independence Air has a new name -- FLYi, Inc., replacing the previous Atlantic Coast Airlines Holdings moniker. Independence Air, in turn, is the former Atlantic Coast Airlines, reinvented as a low-cost airline now operating independently of former partner, United.
ATA, 1 of the only performance laggards in the otherwise robust discounter segment, will begin offering a business-class section in Nov. The new cabin will feature 2x2 seating with 38 to 40-inch pitch. On the labor front, while the carrier's pilots have agreed to $43 million in concessions, the flight attendants last week rejected a management request for $8.9 million in salary givebacks.
Amid persistent rumblings of bankruptcy, Delta management upped its request for givebacks from its pilots -- the industry's highest paid -- from $800 million to $1 billion. The pilots union, which had recently made a move in the direction of management's original offer, was not amused.
Separately, Delta chief Gerald Grinstein has begun revealing glimpses of the carrier's turnaround plan, still in development stages, which may include a "simplified" loyalty program. Stay tuned.
On Oct. 18, United will begin rolling out its new p.s. (for "premium service") on B757 flights between New York and Los Angeles. Toward the end of the year, United begins installation of the same service on New York-San Francisco flights. The new 3-class cabins feature lie-flat beds in first class and 34-inch pitch throughout coach, not just in the Economy Plus sub-section.
United has terminated pension payments due its unions for the duration of its stay in bankruptcy. If the move is allowed to stand, it could force other financially vulnerable airlines to do the same, in the interest of maintaining cost parity, eventually forcing a massive taxpayer bailout of the Pension Benefit Guaranty Corp. Which raises the question: Is United's survival worth it? Perhaps an honorable liquidation would be the best outcome for the greatest number.
Notwithstanding US Air's unexpected $34 million 2nd-quarter profit, the company used the occasion to demand more: more cost cuts from employees, that is, including an additional $295 million from pilots.
ON SITE...........................................................
FrequentFlier Forum Topics
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As always, there's plenty of activity on the FrequentFlier Forum.
CutStyle provides a link to the new AAdvantage double-mile promo (see "Miles & Points" below). Gary wonders if he must commit his miles before confirming that an award seat is available. Ella has info on a MyPoints bonus from Office Depot. And much more...
Do you have questions, answers? Post them to the Forum!
-> More: http://frequentflier.com/forum/index.cgi
MILES & POINTS....................................................
AirTran Bonus for Amex Charges
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Through May 31, 2005, members of AirTran's A-Plus Rewards program will earn a 50% bonus when using an American Express card to purchase a full-fare coach ticket (Y, B or M fares), and a 67% bonus when purchasing a biz-class ticket.
-> More: http://www.airtran.com/programs/aplus/amex.jsp
Air New Zealand to Revamp Program
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Effective Nov. 16, members of ANZ's Airpoints program will earn Air New Zealand Airpoints Dollars instead of points. And when it comes time to redeem, those Airpoint "dollars" are equivalent in value to New Zealand dollars and may be used to purchase ANZ tickets at published rates. The key consumer benefit: since the awards are simply retail seats, they are not capacity controlled.
When the change takes effect, current members' Airpoints will be converted to the new currency at the rate of 75 Airpoints to 1 Airpoints Dollar.
According to Australia-based FrequentFlyer.com.au, which compared earning and redemption scenarios in Qantas's program with the new ANZ scheme, members will generally earn a free flight quicker under Airpoints (good news), but they'll have spent more (bad news) due to lowest-qualifying-fare requirements. The comparison is here: http://www.frequentflier.net/nz.asp.
Kudos to ANZ for transparently linking the expenditure and award sides of the equation.
-> More: http://www.airnz.com/airpoints/airpoints_news.htm
Alaska Scales Back Online Booking Bonus
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Effective Oct. 1, the 1,000-mile bonus for online Mileage Plan award bookings will be converted to a 1-time-only offer. Subsequent awards redeemed at alaskaair.com will no longer earn bonus miles.
-> More: http://alaskaair.com
Double AAdvantage Miles
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Between Aug. 2 and Sept. 30, AAdvantage members will earn double miles for qualifying transactions at any of the following partners: AAdvantage Cruise, AAdvantage Hotel, Alamo, National Car Rental, Avis, Budget, FTD.COM, 1-800-FLOWERS.COM, hpshopping.com, Wine.com, Sharper Image, AAdvantage eShopping (a collection of 50+ e-tailers), heavenspa.com, Samsonite.com, igourmet.com, EarthLink, PeoplePCOnline.
Advance registration is required.
Follow the below link, then click on "AAdvantage - Multiply Your Miles."
-> More: http://www.aa.com/apps/netSAAver/ViewAAdvantageAirlineSpecials.jhtml
Hawaii Vacations Earn 10K AAdvantage Bonus Miles
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AmericanAirlines Vacations is offering 10,000 AAdvantage bonus miles for Hawaii vacation packages booked through Sept. 30 for travel between Aug. 15, 2004 and June 30, 2005.
Qualifying packages must be 5-nights or longer, at select hotels.
-> More: http://www.aavacations.com/miles
Double America West Miles for VS Flights
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Between Aug. 1 and Nov. 30, America West FlightFund members will earn double miles when flying Virgin Atlantic systemwide on eligible fares.
-> More: http://americawest.com/flightfund/promotions/ff_airlinepartner.htm
Bid OnePass Miles for U.S. Open Tennis
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Among various items on auction for Continental miles at the OnePass Online Auction are a selection of ticket packages to the upcoming U.S. Open Tennis Tournament in New York (Aug. 30 - Sept. 12).
At the affordable end of the scale, the current bid for 2 Arthur Ashe Stadium tickets for the Sept. 7 day session is 10,500 miles.
-> More: http://auction.continental.com/
Bonus for Delta Mileage Transfers
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Through Aug. 31, SkyMiles members will earn a 5,000-mile bonus when transferring the equivalent of 20,000 miles from selected partner programs, including Choice Privileges, Diners Club, Hyatt Gold Passport, Marriott Rewards, Priority Club, Radisson Gold Rewards, Sofitel Privilege, Starwood Preferred Guest and Trip Rewards.
Example: convert 40,000 Diners Club points at the normal exchange rate to receive 20,000 SkyMiles, thereby earning the 5,000 mile bonus, for a total of 25,000 miles.
Registration is required.
-> More: http://delta.com/skymiles/getmiles/points_transfer/transfer_lto/index.jsp
United Customers Get 3rd Marriott Night Free
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Mileage Plus members who purchase a United ticket on united.com for travel between July 23 and Dec. 25 will earn a free Marriott hotel night. The offer requires a minimum stay of 3 nights, including a Saturday night.
Airline and hotel booking must be made by Sept. 2.
-> More: http://www.united.com/page/article/0,6722,50935,00.html
FREQUENTFLIER FITNESS.............................................
Airlines Get Fit
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Provided by Healthy Travel Network (www.healthytravelnetwork.com)
With more and more frequent flyers grumbling about lack of exercise, two of the industry's trendiest airlines have introduced inflight exercise programs.
JetBlue was first to market with an inflight yoga program, which they've recently complemented with a Pilates program. Both were developed in partnership with Crunch Fitness, and both can be found in your trusty seatback pocket. Better yet, for those of you not flying JetBlue, you can download the cards from their website at http://www.jetblue.com/travelinfo/health/.
Song has upped the ante with its "Get Fit on the Fly" exercise kit. Developed by fitness expert David Barton, the $8 kit includes instructions, exercise band, and exercise ball (think softball-sized, not one of the big, inflated balls that you find at the gym). Unfortunately, you can only buy the kits on board, but you can read more about them at http://flysong.com/song_and_you/news_releases/index.jsp.
With developments like these, we're going to have to get more creative with excuses for not working out!
STEALS & DEALS....................................................
Deal Alert from SmarterLiving.com
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1) Florida Fares on AirTran from $44
AirTran has announced Florida sale fares starting as low as $44 1-way. Destinations include Miami, Orlando, and more, and departures are valid from Aug. 16 through Sept. 30. Fares may be combined for roundtrip travel.
Book tickets at least 14 days in advance, and by Thursday, Aug. 5.
-> More: http://www.smarterliving.com/air/deal.php?id=7042
2) Worldwide Sale on United from $118
United has announced a systemwide sale on all of its routes worldwide. Prices start at $118 roundtrip, and departure dates vary by route. Destinations include Las Vegas, Honolulu, Sydney, Tokyo, and more.
Book tickets on domestic routes at least 14 days in advance, and on international routes at least 7 days in advance. Book tickets on all routes by Friday, Aug. 13.
-> More: http://www.smarterliving.com/air/deal.php?id=7037
SWEEPS & FREEBIES.................................................
Continued next week...
READER RANTS & RAVES..............................................
Feedback from the Frontlines of Travel
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"What's your take on United? I have about 400,000 miles with them and have become pretty paranoid lately. I live close to Newark airport which used to have quite a few United flights. Now there are very very few (almost no international flights). Should I get a bunch of Star Alliance tickets while United is still in biz?" (Brad)
[Editor's Note - We'll try to address this question in a future issue.]
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"My wife and I are Continental Silver Elite and exactly 11 months before a planned flight to Tel Aviv I tried for two free Business Class seats, and was told they were available, but not at the standard award level mileage rate, but double! Continental has dropped off my preferred airline list, and my family's." (Ron)
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"Someone mentioned www.seatguru.com as a way to find out the seating configuration for your flights. You should also try www.seatexpert.com . Both sites show the seating configuration, but also show which seats are especially good (extra leg room, longer seat pitch, etc.) and which ones are bad (non-reclining, galley noise, limited leg room, etc.). I generally check these sites before booking longer flights." (Joe)
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"So Northwest is now reserving all their Exit row and front row seats for 'P' (Premium) members? Has anyone else run into this?
"So much for being a loyal NON-ELITE customer. I'm switching out of NWA for this." (Michael)
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"Can anyone tell me why Chicago doesn't get JetBlue or Song or Midwest Airlines? It seems that Chicago has only Southwest and ATA for reasonable seats and I keep hearing such great things about these other airlines." (Joan)
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"Just received notification that Alaska airl miles Visa is taking away my complimentary annual upgrade to first class, I have never successfully gotten this and now I never will! Alaska Visa, Bank of America %^&$s!" (Lynn)
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"In reply to Mary [last week] regarding her 340 pound, 6'8" son, I don't accept her complaint as one the airlines or manufacturers should have to address the way she wants them to. It is crazy to expect airlines to provide seats for any individual no matter how large they are, at single seat coach prices. Nor is it always safe...
"The airlines are private companies trying to serve markets profitably. This means they should be trying to serve the large majority (but not all) passengers who want to fly in any particular market to achieve the greatest potential profit... I'm over 6' tall and I don't expect generous leg room in any seat, unless I choose to pay extra for Business or First class (which I don't). If someone is too large to fit in a standard coach class seat, they should either buy two tickets in coach or one in First, or if it is a one-class of service aircraft, accept the fact that they're going to have to sit in the first row or the emergency exit row (or not fly at all, if it isn't safe.)
"That US Airways Express Beech plane crash in Charlotte in 2003 was due to being overweight. Why that didn't serve as a wake up call to the FAA and airlines to get serious about passenger weights, I don't know...
"... The airlines have sizer boxes for carry-on luggage limits for safety reasons; why can't there be size limits for passengers for the same reason?" (Paul)
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"Mary's story of her son [in last week's Crier] reminded me of a flight I had from Pierre, SD to MSP. When I first sat down in my aisle seat, the arm-rest was down between the other passenger's seat and my seat. Shortly after take off, the man next to me pulled up the arm-rest and his body poured over onto my seat and me. It was disgusting. I had paid for my seat and he decided part of mine was his." (Carol)
If you have a rant or a rave, e-mail us at rants@frequentflier.com.
Until next week...
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