This Week's Travel Industry Newsbites

It was only 6 month ago that the airlines seemed poised to turn the corner. Finally, after almost 5 years of chaos, profitability and a modicum of stability were within grasp.

The major management-labor battles had been fought, with workers accepting bare-bones salary and benefits in exchange for the mixed blessing of at least a small measure of job security.

United and US Airways had weathered the worst of the storm and were on track to put bankruptcy behind them.

Ticket price increases were sticking.

Seven of the 10 largest airlines managed to post profits for the April-June period. And advance bookings for the rest of the summer travel season were strong.

The drama was over; the legacy airlines had cheated death. And consumers could return to obsessing about Social Security and global warming instead of the uncertain fate of their frequent flyer miles.

Rumors of blue skies ahead were premature.

Two of the country's largest carriers are a hair's breadth away from bankruptcy, as is 1 of the industry's most storied upstarts.

The drums of labor discontent are again beating loudly.

And travelers have resumed their hand-wringing.

In spite of a long and painful restructuring exercise, Delta is widely expected to file for Chapter 11 -- probably before Oct. 17, which is the start date for a bankruptcy code change which places limits on bankrupt companies' time to file reorganization plans.

The carrier is hemorrhaging cash and this week announced it would sell feeder carrier Atlantic Southeast Airlines to SkyWest for a quick $425 million. (Delta bought ASA in 1999 for $700 million.)

Since 2001, Delta's losses have totaled almost $10 billion.

Meanwhile, Northwest is preparing for a strike by its mechanics, which could begin this Saturday, Aug. 20, the end of the current 30-day cooling-off period. That date is also the deadline for balloting by Northwest's flight attendants, who are voting whether to strike in sympathy with the mechanics.

Northwest management has vowed to deploy non-union replacements in the event of a strike and claims that normal operations can be maintained. Labor reps challenge that claim.

The bad news isn't confined to the legacy carriers, either. After just 14 months in business, Washington-based discounter Independence Air also may be forced into bankruptcy and even cited the possibility of outright liquidation in a recent Securities and Exchange filing.

Ladies and gentlemen, fasten your seatbelts. Again.

FrequentFlier Forum Topics

As always, there's plenty of activity on the FrequentFlier Forum.

In the "Airline Programs" Forum, shortysnh begins his query thusly: "I have been fortunate enough to have to fly Southwest only three times. I can't stand the animal-like behavior that the boarding process seems to bring out in passengers, so I avoid SWA whenever possible. Last month I couldn't help it..."

Also in the "Airline Programs" Forum, carlinrob feels he was the victim of gouging: "I just recently returned from the East coast back to San Diego for the unbelievable walk up price of $745 one-way. My father was taken to an urgent care clinic the day I was supposed to return to California (medical form in hand). Needless to say, Delta offered to charge me $865 for a one-way ticket due to the change in my itinerary. I went with another airline."

In the "Retail, Other Non-Travel Programs" Forum Gary Steiger advises that MyPoints can now be converted to United miles and does the math for us: "Using 6,500 points for a $50 Home Depot gift card, this values the United Airlines miles at 1.54 cents per mile."

And much more. Questions, answers? Post them to the Forum!

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Double Shopping Miles at the AAdvantage eShopping Mall

Through Sept. 15, AAdvantage members will earn double miles when shopping at selected merchants through the AAdvantage eShopping mall.

With the bonus, members earn 6 miles per $1 at Lands' End and Target.com and 4 miles per $1 at Overstock.com and Staples.

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Best Western Doubles the Rewards

Best Western Gold Crown Club International members will earn double points or miles for all eligible stays between Sept. 6 and Dec. 14.

Registration is required, either on the GCCI website or by phone at 1-800-237-8483, promotion code DOUBLE.

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Budget Offers Java for Rentals

Between Aug. 15 and Dec. 15, Budget is offering customers a 2-pound bag of Dunkin' Donuts coffee after every 2 rentals of 2 or more days.

Rentals must be made using a RapidRez or Fastbreak number.

Registration is required.

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Dollar Rentals Earn Triple Miles

Dollar Rent A Car is offering members of 8 airline programs triple miles for qualifying rentals booked in advance on Dollar.com and completed between Aug. 15 and Dec. 15. Participating airlines: Alaska Airlines, American, America West, Continental, Delta, Northwest, United, US Airways.

Triple miles will only be awarded for rentals of mid-size or larger cars, for a minimum of 2 days and a maximum of 7 days. After 7 days, miles will be awarded at the normal level.

(This offer is identical to Thrifty's offer below. Dollar and Thrifty have the same corporate parent.)

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From Hyatt: Faster Free Nights

Hyatt's Faster Free Nights promotion is back.

Between Sept. 1 and Nov. 30, members of Hyatt's Gold Passport program will earn 1 free night after every 2 eligible stays charged to a MasterCard.

Free nights may be redeemed between Sept. 15, 2005 and Jan. 31, 2006.

Registration is required.

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Earn Triple Miles for Thrifty Rentals

Thrifty Car Rental is offering members of 8 airline programs triple miles for qualifying rentals booked in advance on Thrifty.com and completed between Aug. 15 and Dec. 15. Participating airlines: Alaska Airlines, American, America West, Continental, Delta, Northwest, United, US Airways.

Triple miles will only be awarded for rentals of mid-size or larger cars, for a minimum of 2 days and a maximum of 7 days. After 7 days, miles will be awarded at the normal level.

(This offer is identical to Dollar's offer above. Dollar and Thrifty have the same corporate parent.)

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United Offers Elite Members Dining Dough

Through Oct. 31, elite members of United's Mileage Plus program may redeem their miles for restaurant certificates and online food-related purchases.

Redemption rate is 1,000 miles for a $25 certificate and 5,000 miles for a $125 certificate, valid at more than 6,000 restaurants and selected online merchants, including Lobster-Gram, Wine.com, Mrs. Fields Cookies and Allen Brothers Steak Company.

That's 2.5¢ per mile -- decent value by today's standards.

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US Airways Bonuses Caribbean Flights

Dividend Miles members will earn 5,000 bonus miles for first class and 2,500 bonus miles for qualifying coach nonstop flights purchased and flown from Aug. 29 through Nov. 11 between the U.S. and the Caribbean.

Registration is required.

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Deal Alert from SmarterTravel.com

1) Scotland Fares on US Airways from $333

Fall travel to Scotland is on sale with US Airways' Glasgow offer. Prices start at $333 roundtrip for travel in September and October.

Travel at the lowest prices is valid Mondays through Thursdays from Sept. 1 through Oct. 20. Travel through Aug. 31 is available at higher prices. Book tickets by Aug. 31. Fares require a Saturday-night stay.

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2) New Florida Routes on Southwest from $29 Each Way

Southwest has announced its flight schedules and sale fares for its new Ft. Myers routes. Fares start at $29 1-way, and travel is valid for fall flights.

Travel is valid beginning Oct. 2. Southwest's schedule is currently valid through Dec. 12. Book tickets at least 21 days in advance. Southwest has not listed a booking deadline.

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Win a Trip for 4 to Orlando

Enter the Fuji Film "Ride the Blimp" sweepstakes by Dec. 15 for a chance to win 1 of 5 trips for 4 to Orlando, including air, hotel, rental car, tickets to SeaWorld and a 45-minute ride on the Fuji Film blimp.

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Feedback from the Frontlines of Travel

[This week's feedback alludes in whole or in part to last week's report on Southwest's policy changes regarding credit expiration and capacity controls on award travel.]

"While it comes as little surprise that Southwest has determined to modify what was, arguably, the most liberal frequent flyer award program, it is dismaying that I only found out about it from your weekly e-mail (I subscribe to Southwest's weekly notices and never saw it). I find the two year window expansion as a marketing ploy, pure and simple. I don't care, either.

"As with reducing flight credits for booking online, Southwest logically is taking advantage of their market performance. The extent to which this may cripple future business remains to be seen: no market forecasters are ever completely correct.

"More to the point is what happens to Southwest's fares -- their principal advantage -- once their brilliant fuel hedges finally run out. Sooner or later, they will. Which is to say, as with all free programs: fly when you can, the sooner the better." [Edgar N. - Portland, OR]

"Even worse is the fact that Southwest did not extend the 1 year expiration of the free ticket. With capacity controls, that will make it harder to use the award within a year.

"Extending the time to earn a reward should have extended the time to USE the reward!" [Mary D.]

"I have a comment on two separate items.

"The first was about Ben U.'s comment on Dining miles from American Airlines.

"I have not had any problems with receiving credit for my dining miles. However, he should be aware that the participating restaurants change frequently, so a restaurant may have dropped out by the time he went there to eat. Another possibility is that the restaurant did not award miles for the day that he went. Many do not offer miles on Friday or Saturday.

"I do not understand why my dining business isn't worth a bonus on Friday or Saturday. It is still revenue for the restaurant no matter what day I eat. That is probably my biggest complaint with the program.

"The second comment is on Southwest's program changes. I stopped flying Southwest regularly several years ago because I enjoy the benefits of first class upgrades and airport lounges, neither of which Southwest offers. (As an aside, Southwest's no frills model is certainly being adopted more and more by the legacy carriers, which is a negative as far as I am concerned).

"I consider the addition of capacity controls to be a big form of "mileage" devaluement. I certainly would not be inclined to switch to Southwest after this change." [Michael M.]

Until next week...