Issue #8 -- August 15, 1998
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Airline Alliances - What We Know, and What We Don't
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Over the past several months, the six largest U.S. airlines have divulged, in dribs and drabs, details of their marketing-alliance plans--American teaming with US Airways, Delta with United, and Continental with Northwest.
For frequent flyers, the primary issues associated with the get-togethers are these:
* Will members of one program be able to earn miles for flights on the partner airline? In other words, would a member of the American program be able to earn AAdvantage miles for flights on US Airways?
* Will members of one program be able to take award trips on the flights of the partner airline? For example, will members of Delta's program be able to cash in their SkyMiles for free flights on United?
* Will members of allied programs be able to combine miles from both programs in order to qualify for an award? In other words, could you combine your Northwest miles with your Continental miles to redeem an award in one or the other of the two programs?
>> More <<
See the full article on The FFP Site.
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One Million (Repeat: ONE MILLION) Miles
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As frequent flyer program participants, we're constantly barraged with "special" offers-double miles for this, triple miles for that. So many and so often, in fact, that it all gets a bit (dare I say it?) boring.
Here's one that got my attention, and should get yours: the ClickRewards Million Mile Sweepstakes.
It works as follows: through midnight on Monday, September 14, you can enter the Million Miles Sweepstakes to win a million ClickPoints by registering as a ClickRewards member. ClickPoints are the "currency" of the ClickRewards online promotion program. They're redeemable for frequent flyer miles (on a one-to-one basis) in any of seven major airlines: American Airlines, British Airways, Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines or US Airways. The winner can also redeem the prize for car rentals, hotel stays and other items available in the ClickRewards catalog.
To enter, you must register with ClickRewards. No purchase is necessary.
Someone has to win... might as well be you (if it's not me).
>> More <<
To register and automatically enter the sweepstakes, go to the ClickRewards site.
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Miles-For-Mortgages
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American Airlines' AAdvantage Program For Mortgages And Real Estate, the first program to award frequent flyer miles for home mortgages, is teaming up with Countrywide Home Loans, the nation's largest independent mortgage lender.
Countrywide becomes the AAdvantage program's principal mortgage provider. When AAdvantage members call the program's 800 number to buy or refinance a home through one of Countrywide's 350 retail offices throughout the United States, they will receive 1,000 miles for each $10,000 of loan amount at the time of funding. In addition, AAdvantage members will also earn 2,500 miles when they take out a home equity loan or line of credit of any size.
The AAdvantage Program For Mortgages And Real Estate was launched in April 1996 and was the first program of its kind to offer its members the opportunity to earn thousands of miles when they buy, sell or finance their homes.
Members buying or selling a home through the real estate portion of the program earn 1,500 miles for each $10,000 of purchase or sales price, with the opportunity to earn additional miles on other home-related services. For example, AAdvantage members can earn an additional 2,500 to 5,000 miles on Van Line Services, and 500 miles when they install a home security system from ADT.
>> The Math <<
The median cost of a home in the U.S. is currently $131,000. If you were to put up 20% ($26,200) as a downpayment and finance the remainder ($104,800) through Countrywide, you'd earn 15,720 AAdvantage miles. Assume those miles are worth $0.02 (2 cents) each. That translates into a $314 rebate. That's not much, considering the scale of the transaction.
>> The Advice <<
If Countrywide's terms (interest rates, fees) are competitive, by all means take advantage of the mileage kicker. But be sure that you're not paying thousands more in the long term just to get a few extra miles in the short term.
>> More <<
American AAdvantage
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Northwest Now Faces Strike Threats on Two Fronts
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>> Pilots <<
Talks resume on Monday, August 17, between Northwest and ALPA, the pilots' union. If the negotiations, conducted under the auspices of a federal mediator, do not lead to a contract agreement by end of day August 28, the pilots could strike the airline.
>> Machinists <<
Meanwhile, on Wednesday, the International Association of Machinists (IAM) International President R. Thomas Buffenbarger demanded that the National Mediation Board release the IAM from mediation to commence a 3O-day countdown to a possible strike. The IAM represents 27,000 employees of Northwest who overwhelmingly rejected four of five tentative agreements negotiated with Northwest Airlines. The membership also voted overwhelmingly to authorize a strike against Northwest Airlines if a satisfactory settlement cannot be obtained. According to an IAM official:
"Our membership has sent a message loud and clear to Northwest Airlines that after 22 months of negotiations the membership is ready, willing and able to strike this carrier if the tentative agreement cannot be substantially improved. This is the clear will of our membership backed up by complete solidarity."
>> More <<
Northwest is making available on its website information on flights that may be affected by the strike, as well as status reports on the labor negotiations, as follows--
o Northwest flight updates
o Further information on the labor negotiations
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AirTran Upgrades
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AirTran's special promotion allows full fare coach travelers to upgrade to business class for no extra charge through September 30, 1998. Customers traveling on a full fare coach ticket (Y fare basis only) will be placed on a priority list at the gate for an upgrade to business class if space is available.
In early June, AirTran installed business class seating throughout its entire fleet of jet aircraft. AirTran's B-737 aircraft features eight business class and 111 coach class seats, and the DC-9s offer 16 business class and 90 coach class seats. AirTran's business class seats are normally priced at $25 more than regular one-way full coach fare on nonstop flights, and $40 more than multi-stop flights.
>> More <<
AirTran
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AirTran Flight Attendants Threaten CHAOS
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CHAOS--which stands for Create Havoc Around Our System(TM)--is looming for AirTran passengers if the airline' flight attendants do not have a contract by September 5, 1998 at 12:01 am, EDT.
"If we don't get a contract by the deadline, it will be CHAOS," said AFA Local President William Green, Jr. "We may strike, or we may not. We may strike one flight, or 10, or 50. We may strike in Atlanta, or we may strike a return flight. Management won't know, and the traveling public won't know. That's what CHAOS is all about."
If the September 5 deadline passes without an agreement the union is free to engage in work stoppages to pressure the company into an agreement. A similar strike by AFA at Alaska Airlines drove passengers away to other airlines as they sought to avoid the risk of CHAOS. With CHAOS work stoppages target certain flights with little or no advance notice. Passengers never know if their flight might be struck.
"We don't want to inconvenience our passengers, but it's up to management now," said Green. "The AirTran flight attendants are only asking to be treated like other flight attendants in the industry, and like other AirTran employees. If the company is reasonable we can all avoid CHAOS."
Negotiations have been underway for nearly three years for a first contract after AirTran flight attendants voted in AFA at what was then called ValuJet. Federal mediators have been unable to broker a deal despite months of mediation. An impasse was declared on August 5 and the NMB started the 30-day countdown after the parties failed to agree to submit all remaining issues to a neutral arbitrator.
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Delta Caters to "Loungers"
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Delta Air Lines will offer catered meal service to customers hosting meetings in 55 Crown Room Club conference rooms in 25 domestic cities by the end of summer.
Delta debuted the catering service earlier this summer at the six Crown Rooms in the Atlanta Worldport, where catering is provided by Le Petit Bistro, an Atlanta-area restaurant with three locations at Hartsfield Atlanta International Airport.
The optional service features a variety of cold entrees available seven days a week from 7 a.m. - 8 p.m. Prices generally range from $10 - $15.95 per person.
>> More <<
Meeting planners should call 1-800-496-2225 to make advance reservations.
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More Partnering Among Online Travel Providers
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With the number of travel bookings over the web expected to double in 1998, Rough Guides and Headland Digital Media announced a strategic partnership with the industry leader in web-based travel reservation systems, ITN (Internet Travel Network), to create a comprehensive interactive travel planning resource on the Internet.
Set to launch early this fall, The Rough Guide to Travel is a content-focused environment where independent travelers can learn about destinations, join an online community of travelers, and find Rough Guides books and related travel products.
Headland Digital Media, the digital publishing arm of Pearson plc., has developed a database-driven distribution system that delivers requested content from a central location. This system allows Rough Guides' editorial team to dynamically update their destination guide information across all distribution partner web sites in real time, using content management tools that Headland has developed especially for this purpose. The database distribution system will allow Rough Guides' partners to receive customized feature sets simultaneously. Combined, the proprietary distribution system and content management tool allow Rough Guides to focus on its core competency, publishing travel guides.
Rough Guides and Headland see this partnership, coupled with ITN's booking service, as a natural evolution of the online travel space and an important step toward addressing the interests and expectations of travel enthusiasts on the web.
>> More <<
Rough Guides
Headland
ITN
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United, Delta Raise Business Fares on Northwest Routes
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In a classic example of opportunistic pricing, United and Delta have raised fares on many routes where, and only where, they compete head-to-head with Northwest.
The increases apply only to same-day (or "walk up") fares, typically purchased only by business travelers.
It's fair to conclude from this pricing initiative that United and Delta are already seeing increased demand on Northwest routes, as the threat of a strike drives travelers away from Northwest and onto the planes of its competitors. And it's fair to predict that, as a strike becomes increasingly likely, United and Delta will raise prices for leisure fares as well.
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Asian Travel Bargains (Continued)
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Yet another reason to travel to Asia...
>> "Hop to Hong Kong" for $399 on Cathay Pacific <<
Cathay offers the following "Top 10 Things to do with $399" list:
10) Contribute to your favorite politician's legal defense fund,
9) Buy 100 combo meals from a local fast food restaurant and invite friends over to see whose arteries harden the quickest,
8) Throw a really, really, really big birthday party for your dog,
7) Invest in your brother-in-law's latest "get poor quick" scheme,
6) Clear up those pesky parking tickets,
5) Get your car out of the impound yard for not clearing up those pesky parking tickets,
4) Make a down payment on your tummy tuck,
3) Get the velvet Elvis framed,
2) Purchase one-half of an airline ticket to Europe,
And the number one thing you can do with US$399...
1) Travel round-trip from Los Angeles or New York (JFK) to Hong Kong on Cathay Pacific's Hop to Hong Kong promotion.
Until August 31, 1998, members of Cathay's free, Internet-based CyberTraveler program can purchase roundtrip, economy class tickets from Los Angeles or New York (JFK) to Hong Kong for US$399, plus taxes and fees. These Hop to Hong Kong tickets are valid for travel between Sept. 1, 1998 and Nov. 30, 1998, inclusive. CyberTravelers can also choose to add a side trip to Bangkok for an additional US$149.
To be eligible for this offer, passengers must register as a CyberTraveler online at the airline's web site. There is no charge for registration. CyberTravelers receive e-mail notices of special promotions throughout the year.
Hop to Hong Kong seats are limited and may not be available on all flights. Tickets are nonrefundable, even in the event of illness. There is a US$150 per person, per instance change fee for any itinerary or name changes. Maximum stay in Hong Kong is five nights. Maximum stay in Bangkok is three nights. Other restrictions apply.
>> More <<
Register at Cathay's website
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