UP FRONT..........................................................

Industry Newsbites (Signs of the Times)
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These days, it's tempting to divide the word into the profitable low-fare airlines and the near-bankruptcy old-line carriers. But Indianapolis-based discounter ATA proves that marginal financial performance is not exclusive to the high-cost majors.

More than 2 weeks after most other U.S. airlines reported their 2nd-quarter operating results (summarized in Crier #308), ATA straggled in with its numbers: a $25.7 million loss, versus a $43.3 profit during the same period last year. In the SEC filing, ATA warned that it will "not have sufficient cash to meet its cash obligations in the first quarter of 2005" without changes to its "operating assumptions." In other words, they're running out of money. An industry analyst predicted that ATA could be in bankruptcy by early next year. Shoulder to shoulder with... well, that remains to be seen.

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Against the backdrop of rising expectations that US Airways will file for a 2nd round of bankruptcy protection as early as mid-Sept., the company's chairman, David Bronner, was quoted in today's Pittsburgh Post-Gazette dismissing as unrealistic any hopes that a white knight might suddenly appear to shore up the carrier's deteriorating finances.

That's not surprising, given the combination of US Air's deeply depressed condition and the generally precarious state of the industry.

Those very circumstances also dictate against the likelihood that, in a liquidation scenario, another carrier would swoop down and acquire US Air's Dividend Miles program, as American did with TWA's program.

ON SITE...........................................................

FrequentFlier Chatter -- the Next Chapter
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After several years and tens of thousands of posts, we closed the "old" FrequentFlier Forum on Aug. 15. While no new messages may be posted, old messages will remain accessible at least until the end of this year, and longer if needed.

For new posts, please visit the "new" FrequentFlier Forum -- a vastly improved version of its predecessor, based on a much more sophisticated software platform.

-> More (old): http://frequentflier.com/forum/index.cgi
-> More (new): http://frequentflier.com/forums/index.php

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

Noteeyore reports: "We are going to Italy! But WAIT..... we called Delta last night and there are NO SkyMiles flights available for the ENTIRE MONTH OF OCTOBER!"

DZSS ponders the dilemma faced by many travelers: "I currently have about 90,000 UA miles. Are they worth holding on to and building on them or should I blow out of them given that are operating under Chapter 11 and switch to AA?"

Flying Texan laments: "I had been a big Hilton user until they debased the airline miles/HHonors ratio a couple of years ago...BUT what really got me was their ZERO REWARDS policy for ANYTHING if the initial reservation was from a non-Hilton source."

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

-> More: http://frequentflier.com/forums/index.php

MILES & POINTS....................................................

Triple Alaska Miles for Hawaiian Air Flights
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Through Sept. 30, Alaska Airlines Mileage Plan members will earn triple miles for qualifying flights on Hawaiian Airlines. Heavily discounted fares, including H, K and N classes, are excluded.

Flights must be booked through Hawaiian Airlines reservations at 1-800-367-5320. Reservations made at hawaiianair.com or any other source do NOT qualify.

Registration is required (link below).

-> More: http://alaskaair.com/www2/Promo/Registration/PromoEntry.asp?pid=HA0403

American Extends Mileage Purchase
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American has extended its buyAAmiles, giftAAmiles and shareAAmiles programs, originally scheduled to end July 31, through Jan. 31, 2005.

The programs, which are built on Points.com's back-end platform, enable AAdvantage members to purchase, give away or share their miles... for a price.

-> More: http://www.buyaamiles.points.com

AAdvantage Miles for Minute Maid
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Through Dec. 31, AAdvantage members will earn miles for purchasing specially-marked Minute Maid products at participating retailers in Iowa, Kansas, Missouri, Nebraska, Oklahoma and Texas.

Earn 50 miles on 2-liter bottles and 100 miles on 12-can packages of lemonade, pink lemonade and fruit punch. Instructions on qualifying items include a code and website link where customers register their purchase. A minimum of 5 purchases must be registered before miles are credited.

The promotion launched Aug. 2 and runs through Dec. 31. The deadline to enter valid codes is June 30, 2005.

-> More: http://www.miles4minutemaid.com

ANA, Shanghai Air to Link Programs
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Assuming the necessary approvals are obtained, ANA and Shanghai Airlines will link their frequent flyer programs beginning Sept. 1, allowing ANA Mileage Club members and Shanghai Airlines Frequent Flyer Program members the ability to earn and redeem mileage on each other's networks.

The mileage link will support a code-sharing agreement, also set to begin Sept. 1.

AT&T Pulls Back on Miles
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When we reported on AT&T's plans to "de-emphasize" its consumer and small-business phone services in favor of potentially more profitable corporation-oriented products, the underlying concern was the effect the change would have on the company's marketing activity in the area of mileage programs.

That concern manifested itself last week via snail-mail: letters from AT&T announcing that, beginning Sept. 24, members of the AAdvantage, OnePass and SkyMiles programs would continue earning 5 miles for every $1 spent on AT&T residential local and long-distance service ONLY for months during which their bills exceed $50.

With today's hyper-low local and long-distance pricing, the new policy will pull the plug on many consumers' monthly telecom miles, mine included.

It is to be hoped that the 3 airlines will replace AT&T with other telecom companies which offer comparable products but are willing to offer mileage-program members more generous earning terms -- i.e., 5 miles for every $1 in charges, with no monthly minimum, as AT&T currently does. But with profit margins squeezed industry-wide, this may be unrealistic.

In a related development, we hear that AT&T will no longer award Starwood points beyond Oct. 31. We'll verify and confirm this info in a future Crier.

Links to the airlines' announcements are as follows:

AAdvantage - http://loyalty.att.com/aadv/assistance/mileage?soac=56003
OnePass - http://loyalty.att.com/onepass/assistance/mileage?soac=-56003
SkyMiles - http://loyalty.att.com/skymiles/assistance/mileage?soac=56003

Best Western Doubles the Earnings
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Members of Best Western's Gold Crown Club International will earn double points or airline miles for qualifying stays at Best Western properties between Sept. 1 and Nov. 30.

Pre-registration is required (link below).

-> More: http://www.goldcrownclub.com/offers/doubleup_dbl04.asp

Hilton HHonors Bonus for Hawaii Stays
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Through Dec. 26, HHonors members will earn 10,000 bonus points for 3-night air/hotel/car packages at the Hilton Hawaiian Village or Hilton Waikoloa Village, and 5,000 bonus points for comparable stays at the Doubletree Alana Hotel - Waikiki.

During Sept. only, members will receive a $100 dining credit when booking 4 or more nights in ocean view category rooms or higher at the Hilton Hawaiian Village or Hilton Waikoloa Village.

-> More: http://www.hiltonhhonors.com/index.aspx

Starwood Bonus for Sunday Arrivals
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Through Sept. 19, Starwood Preferred Guest members will earn 2,000 Starpoints for Sunday arrivals at any of the 5 New York W Hotels.

Registration is required.

-> More: http://starwood.com/preferredguest/promotions/registration/landing_page.html?promoID=SUNDAY2K

STEALS & DEALS....................................................

Deal Alert from SmarterLiving.com
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1) Bermuda Sale Fares on US Airways from $315

US Airways has announced Bermuda sale fares starting at $315 roundtrip. Travel is valid through Nov. 11.

Book tickets at least 3 days in advance, and by Friday, Sept. 10.

-> More: http://www.smarterliving.com/air/deal.php?id=7111

2) Europe Fares on 1-800-Fly-Europe from $237

1-800-Fly-Europe is once again offering Europe sale fares for fall travel. Destinations include Amsterdam, London, and Paris, and travel is valid from Sept. 8 through Oct. 31.

Book tickets by Monday, Aug. 30.

-> More: http://www.smarterliving.com/air/deal.php?id=6987

SWEEPS & FREEBIES.................................................

From Continental: Game. Set. Miles. Sweepstakes
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Enter CO's sweepstakes between Aug. 16 and Sept. 12 to win 1,000,000 OnePass miles.

There are several ways to enter, including registering online, signing up for CO e-mail newsletters, or visiting CO's booth at the U.S. Open tennis tournament in New York. Mail-in entries are also accepted.

-> More: http://continental.com/OnePass/news/continental/co_20040830_01.asp

READER RANTS & RAVES..............................................

Feedback from the Frontlines of Travel
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"I am responding to several rants about NW's seating policy. I am a Northwest reservations agent (domestic, paid).

"Sonia said she can't touch forward premium seats in coach if she is booked with a non Elite member. This is false. If you are both in the same record, your companion gets the same benefits as you, except the upgrades to First Class. If she still wants her First Class upgrade she needs to book her reservation seperately from her companion, but then the companion will not get the premium seats. They have to be in the same reservation. Dan in Delhi said that you can't get seated together with young children. You can. If none of the non-premium seats are available, the agent can get family seating released for you, however it is in the rear of the plane. The reason that the family seating is in the rear is that years ago the First Class customers complained about the children directly behind them in the bulkhead coach row. (Can't disappoint those First Class customers!)

"I am glad to hear of Warren's experience on NW. This is the way it should be. The only people who can get exit row pre-assisgned are Elites, but if no one else is assigned those seats when you check in, anyone can ask to sit there as long as they are Exit row qualified (i.e, no chilren under 16 with you, you are physically able to assist during emergency). I always advise my passengers when booking if I cannot get them seated together or up front to check in online before departure. If all the non Elite seats in the back are reserved the ones in the front of coach will be available online 24 hours or less prior to departure. If you are still not satisfied, ask the gate agent if something is available when you are at the airport. Hope this helps! I enjoy your letter!" (Pam)

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"My wife and I were on a NW flight that was overbooked and volunteered to forgo the flight and take TCV Exchange Coupons for taking a taxi to the next stop. The announcement said the coupons were good for roundtrip tickets. What they didn't say was that they were for the same class of service as a frequent flyer seat. As the survey shows NW has a terrible reputation for having frequent-flyer award seats available. What ticks me off is that they make the big announcement and beg for somebody to get off but don't tell you about the ifs, ands and buts. After the plane has left they give you all the terms and conditions. We have tried to use these coupons 3 times and every time we get "there are no seats of that class available". As gold and silver level NW travelers (who tried to do NW a favor) take our advice and don't give up your seat or insist on a cash voucher. Round trip tickets sound good but they are useless if you can't go where you want, when you want. Remember, there is nothing saying that they have to tell you the whole truth so they tell you what you want to hear and leave out the rest." (John in Detroit)

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"Can it be reasonably explained why Delta without any advanced notification have increased their sky miles requirements from 20000 to 25000 for an upgrade on one leg of a UK/US return flight. As a UK resident my wife and I would now have to spend an extra ten thousand pounds (approx. eighteen thousand dollars)extra on our Amex to upgrade. As we make this trip 4 or 5 times a year, that could mean to upgrade as we have done for many years we now would have to spend an extra 90000 thousand dollars on our Amex per year. Has any frequent flyer any suggestions?" (Terry)

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"The problem is not getting an award seat, it is getting it at the 'saver' or published level. At least on United, you can just about always get one for 'double miles.'" (Ralph)

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"I booked a business class seat on British Airways/American Airlines dep Aug 25 2004 from LA/Heathrow/Boston/LA using 100,000 BA frequent flier miles. Due to unforeseen circumstances, I called to reschedule my flight for a later date using the same itinerary and was informed I could not change the flight and that I would lose the miles if I cancelled. The reason I was given by BA was due to the American Airlines sector Boston/LA and that this prevented any change. I called AA they were unaware of this "rule". BA and AA are partners. What right has BA to impose such a ruling on a partner airline, which penalises the passenger?

"I sent three emails to "ASKBA", called BA in the USA and UK and was given no satisfactory explanation as to the legality of this self-imposed "ruling". It has taken a lot of financial effort to acquire these miles, so I am at a loss to understand why BA has adopted such a posture. Finally, I have written (Aug 16) to the CEO of BA in London citing my exasperation at the pending loss of 100,000 BA miles over this outrageous rule." (Joan)

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[As we said last week, these will be the final comments in the thread regarding seating for oversized travelers...]

"Hi, reading the topic about large people buying two seats reminded me of a conversation I had with a fellow passenger on my way back from Bangkok, there is an up side to this.

"The passenger told me he flies from the West coast to Bangkok for business several times a year. I was saying how nice it is when you can get a row of seats open for self to stretch out, it is sometimes more comfortable than business class.

"He said he once booked six seats in row in his name. The flight was about $700.00 per seat, X 6 about $3,500.00 He said a business class seat was just a bit lower. But the real steal was because he was an executive member he got double miles for each seat, the one flight got him 60,000 miles X 2 120,000 and allowed him to check in 12 pieces of luggage, for him that translated to cargo. He had enough miles from that one flight to book two business class seats to Bangkok." (Tom)

"I think we need to face the fact that our society has large people that fly often and the coach airline seats are simply not big enough for a majority of people. I think it's easy to suggest buying a bigger seat, but first class is significantly higher in price. I wish people would stop complaining about sitting next to big or tall people and instead close their eyes and nap." (Michele)

If you have a rant or a rave, e-mail us at rants@frequentflier.com.

Until next week...