U P F R O N T

Trendspotting -- The Demise of Frills?
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Against the backdrop of doom and gloom afflicting the major full-service carriers, the no-frills airlines are all aglow with their own accomplishments. Where the majors are in a fight for their very survival, the news from the low-fare carriers is overwhelmingly positive: profits, expansion and new entrants.

And the exuberance is not confined to the U.S., where Southwest and JetBlue have become the darlings of the investment community.

In Canada, discount carrier WestJet is hale and hearty, as is Tango, Air Canada's low-fare subsidiary which carries fully 12% of AC's domestic passengers. All eyes are now on Jetsgo, the newly launched Canadian discount airline.

In Europe in just the past few days, London-based easyJet reported a 61% year-over-year traffic increase, and Ireland's Ryanair boasted a huge jump in profits. The U.K. will get another low-priced carrier this fall, to be called Travel Lite. And there are rumored to be 2 more such airlines in the pipeline in Germany, including an offshoot of Lufthansa to be based at Cologne/Bonn airport.

Confirming the trend, a recent study by Mercer predicts that low-cost carriers will control 25% of European market share by 2010.

The good news: more lower prices. But we'll get what we pay for. Namely, less. Less legroom, less service, less of everything that represents potential cost savings to the airlines. Including mileage programs. In most cases, no frills means no miles. And where miles are offered, the generosity quotient will be off the scale... on the low end, naturally. (For a preview of what might be coming, see the review of JetBlue's new TrueBlue program at http://frequentflier.com/blue.htm.)

Spirit Runs Scared from Bargain Hunters
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And speaking of cheap tickets, Spirit's "Fly Free on 9/11" offer must have struck a chord. A major chord. I've been trying all day to get onto Spirit's website, to no avail. (See "New on the FrequentFlier Forum" below for details, including a phone number.)

O N S I T E

Two Minutes of Your Time, Please
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Thanks to everyone who responded to last week's plea. If you didn't, here it is again...

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Please help us insure that the ads we do run are relevant to your needs and interests: Take our online subscriber survey.

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New on the FrequentFlier Forum
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Roxanne has the skinny on the aforementioned Spirit free ticket promo: "I just saw a blurb on CNN and went quickly to spirit.com. They are giving away free flights on Sept. 11. Booking can be by phone or website starting 8:00 A.M EST. 8/07 to 8/08 or until all 13,000 seats are given away.. Don't miss out on this one!" www.spiritair.com or (800)772-7117. And more...

Do you have mileage-related questions, answers, anecdotes? Post them (and read others') on the FrequentFlier Forum.

M I L E S & P O I N T S

American Extends Miles-for-Sale
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American has extended its online miles-for-sale programs, buyAAmiles and giftAAmiles, through Jan. 31, 2003.

The buyAAmiles program allows AAdvantage members to purchase up to 15,000 miles per calendar year for their own accounts. And giftAAmiles allows members to give and receive up to 15,000 AAdvantage miles.

AAdvantage miles are for sale at 2.75 cents per mile, plus applicable taxes and fees for purchases up to 5,000 miles, and 2.5 cents per mile plus applicable taxes and fees for purchases between 6,000 and 15,000 miles.

For more, go to http://buyaamiles.points.com.

America West, Hawaiian Air to Link Programs
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America West and Hawaiian Airlines this week announced plans to code share and participate in each other's frequent flyer programs.

The relationship takes effect on Oct. 1, 2002, with the start-up of Hawaiian's new service from Honolulu to America West's Phoenix hub. From that point onward, members of Hawaiian's HawaiianMiles and America West's FlightFund programs will be able to earn and redeem miles for travel on the other carrier's route network.

Continental Will Discount OnePass Awards
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For any OnePass members planning to redeem miles for a domestic award ticket in the near future... WAIT!

While the date hasn't been announced, Continental will be unveiling its revamped website shortly, and will offer a 20% discount for reward travel booked online. Here's the announcement:

"From launch through September 30, 2002, book a round-trip Economy Class reward ticket online to anywhere Continental flies in North America for only 20,000 miles. That's a savings of 5,000 miles."

Worth waiting for, if you can.

ShopOnePass for Bonus Miles
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Of the airlines' miles-for-merchandise malls, Continental's ShopOnePass is among the weakest. However, if what you need is available from 1 of their few retail partners, there are mileage bonuses in effect which make them contenders.

Buy a backpack or other accessory from eBags through Sept. 15 and earn 250 OnePass bonus miles for any purchase over $30, in addition to the normal 10 miles for every dollar spent. And OfficeMax is offering 250 OnePass bonus miles for purchases of $150 or more through Aug. 31, plus 3 miles for every dollar spent.

> More...

Double Club Rewards Points at Office Depot
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Diners Club cardholders can now use their cards for purchases at Office Depot's 850 retail stores in North America and online at http://www.officedepot.com. To promote the tie-up, Diners is offering double Club Rewards points on every Office Depot purchase charged to Diners Club through Sept. 30, 2002.

> More...

PAL Relaunches Mileage Program
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At Philippine Airlines, everything's new. Well, at least the website and frequent flyer program are, since the Aug. 1 relaunch of both.

Mabuhay Miles currently offers air miles exclusively for PAL flights. In addition, there's a modest list of miles-for-stays hotels, plus Hertz and a charge partner.

To get the program off on the right foot, there are a number of double-mile promotions in place, as well as an enrollment bonus. Through the end of the year, members can take advantage of reduced mileage levels for awards.

> More...

Earn Double United Miles for Charges
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Through Oct. 31, 2002, all charges on registered Mileage Plus Visa cards will earn double Mileage Plus miles.

To register a card, go to the below link and enter the last 4 digits of your credit card account number and your 11-digit Mileage Plus membership number. After registering, cardholders will receive double miles on all purchases made between July 17, and Oct. 31, 2002.

The maximum number of additional miles that can be earned each month is 10,000 for non-Premier members and 25,000 for Premier members. Mileage Plus Platinum Business cardholders are not eligible for this promotion.

> More...

Extra Dividend Miles for Auto Club Members
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AAA members who fly on US Airways can earn 2,500 bonus miles for travel through Oct. 31, 2002. The bonus can only be earned once.

Register online prior to departure at the link below, or call 1-800-872-4738 and enter promo code 2178.

> More - http://www.usairways.com/dividendmiles/2178.htm

Coming & Going - Program Partner Changes
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> Tie-Ups
American AAdvantage: AT&T Wireless, Europcar, Midland National Life Insurance. America West FlightFund: Hawaiian Air*. Delta SkyMiles: Ameritrade, Jumeirah International Hotels, Signature Nationwide Auto Club, Tokyu Hotels. Hawaiian Airlines HawaiianMiles: America West*. Northwest WorldPerks: AT&T Worldnet Internet access, Malev Hungarian Airlines. United Mileage Plus: Asiana (date TBD), LOT Polish Air (date TBD), SkyTel wireless, Spanair (date TBD), US Airways (date TBD). US Airways Dividend Miles: FTD.com, Nevis Express, United* (date TBD).

> Break-Ups
American AAdvantage: Asiana (eff. Jan. 1, 2003); MGM Grand Las Vegas (eff. July 1). America West FlightFund: Continental (eff. Sept. 24). Continental OnePass: America West, Frontier (eff. Sept. 24). US Airways Dividend Miles: Deutsche BA (eff. Oct. 25).

* More details elsewhere in this issue

S T E A L S & D E A L S

Deal Alert from SmarterLiving.com
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This week's hot deals from SmarterLiving.com...

Fall Fares to Europe from $338 R/T
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Major U.S. airlines have been promoting their fall fares to Europe for several weeks now, with most round-trip fares at least $500 for travel to England, the least expensive destination. British Airways has just joined the fray with prices that are significantly lower to London and other cities across Europe. In addition, flights to Europe include free stopovers in London in either direction.

To get the lowest fares, travel between Aug. 28 and Dec. 15 on Mondays through Wednesdays. Purchase tickets at least seven days before departure and by Thursday, Aug. 8. Book online to save $20 per round-trip ticket. Other airlines have matched these fares on selected routes.

> More...

Fares to/from the East and Southeast from $88 R/T
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With sale fares from AirTran and US Airways, you can check out the fall foliage in New England or slip away to sunny Florida. Delta has released a related sale on travel to/from Atlanta. Sale fares are valid between Aug. 11, 2002, and Jan. 22, 2003, on Mondays through Thursdays and Saturdays. All 3 airlines require a 10-day advance purchase. You must book on AirTran and Delta by Tuesday, Aug. 13, but US Airways has not announced a purchase deadline.

> More...

S W E E P S & F R E E B I E S

United's Summer Special Sweeps
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Every booking on United's website through Aug. 29, 2002, earns 1 entry in the Summer Special sweepstakes. Twenty-five winners will each receive a refund on their united.com ticket purchase. You can also enter without making a purchase, by mail. In that case, winners receive $500.

And everyone who books will automatically receive a promotion code worth $200 off per stateroom on a 7-Day cruise plus a $50 on-board credit on Norwegian Cruise Lines.

> More...

[Other travel-related sweepstakes and giveaways are online here.]

Until next week...