Issue #9 -- August 22, 1998
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The Rewards of Over-Withholding
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Beginning next Spring, U.S. taxpayers will be able to use credit cards to pay their federal taxes. This is a key component of the IRS's plan to increase the number of taxpayers filing electronically.
This represents something of a silver lining for those who find themselves in the "Damn, I owe them more" camp at the end of the year. Just be sure to make that payment with a card linked to your frequent flyer program, and you'll earn a little mileage to offset the pain. Taxpayers will be assessed an extra "convenience fee" for credit card payments, according to the amount of the transaction (the formula hasn't yet been determined).
So far, MasterCard, American Express and Discover have agreed to participate. Visa, the largest card issuer, has yet to commit, but is expected to add its name to the list by the time the new system is implemented.
Notwithstanding the title of this article, don't even think about changing your tax strategy to make out mileage-wise. The real value of the extra miles is hardly likely to compensate for the additional financial (and emotional) costs of over-withholding.
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At Northwest, Countdown to Shutdown
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As this newsletter goes to press, Northwest's pilots are less than a week away from making good on their strike threat, with no sign of resolution in sight.
For those planning or already ticketed for travel on Northwest, on or after August 29, following is a list of questions and answers provided by Northwest in a news release distributed on Friday, August 21:
1. Can you guarantee that my flight won't be canceled a strike?
If you are traveling before 12:01 a.m. EDT on August 29, a strike will not disrupt your travel plans, as the pilots are prohibited from striking before that time. If your travel plans are after 12:01 a.m. EDT August 29, Northwest cannot guarantee it will be flying as the decision to call a strike rests with the leadership of our pilots' union. Should such an action occur, Northwest employees will make every effort to minimize any interruption in service that will hurt our customers and the communities we serve.
2. Will my ticket be refunded if my flight is canceled as a result of a strike?
Should a strike occur, we will make every effort to rebook you on another carrier at no additional charge you. If we are unable to do so, we will fully refund your money.
3. If a strike is imminent, will Northwest rebook me on another carrier?
We will make every effort to accommodate our customers as we can. If we can't rebook you on another carrier, or for a later date acceptable to you, your purchase will be fully refunded.
4. Can I cancel my non-refundable ticket now and get my money back?
Until the pilots' union actually initiates a job action, our non-refundable ticket restrictions remain in force.
>> Time Out for a Policy Comment <<
More than 90% of all tickets purchased are based on so-called discount economy fares. Part of the trade-off passengers make to get the discount is in the area of restrictions: discount economy fares are heavily restricted. And first and foremost among those restrictions is that, typically, the tickets cannot be refunded. The buyer assumes a measure of risk that he will be unable to use the ticket, and will forfeit its value, in exchange for a lower price. Well and good in most cases. But the underlying assumption is that the risk reflects buyer-side contingencies. In the case of a potential strike, the buyer is being forced to add to that the risk of supplier-side contingency-the likelihood of a strike. Under those circumstances, Northwest should waive the nonrefundable restriction on tickets issued for travel after August 28, and allow customers to request a refund and make alternative travel arrangements.
5. My children were going to fly alone on Northwest later this month. Should I still book them on Northwest, or is it wiser to book them on another airline?
Northwest continues to operate its full schedule and as a result unaccompanied minors are welcome as always. However, because of the uncertainty surrounding a strike by our pilots sometime after 12:01 a.m. EDT August 29th, we will not accept reservations for unaccompanied minors traveling within the United States after August 28th or internationally after August 26th.
6. I have an E-ticket. How can I get a new ticket on another carrier if Northwest pilots strike?
Effective immediately, Northwest will begin converting paper tickets from any e-tickets booked directly with Northwest for domestic travel after August 28th or international travel after August 26th. These replacement paper tickets will be mailed to customers automatically in advance of their date of travel. Northwest is communicating with travel agents and recommending they do the same for the passengers they have booked. All future e-ticket requests for travel during that period will be converted to paper tickets.
7. I'm planning in the next 60 days to use a frequent flyer ticket that expires this year. Will Northwest honor that ticket into next year if I can't use it now?
Should any of our customers be caught in such circumstances, Northwest will extend the expiration date those miles so as to allow for their reuse.
8. Will other airlines accept Northwest tickets in event of a strike?
Should a strike occur, we expect to have agreements in place with all major airlines for the acceptance of Northwest tickets.
9. Will other airlines accept Northwest tickets?
Should a strike occur, we expect to have agreements in place with all major airlines for the acceptance of tickets.
>> The Bottom Line <<
Notwithstanding Northwest's best efforts and intentions, in the event of a strike, their customer service resources will be completely overwhelmed by tens of thousands of anxious, angry customers. Similarly, seats on alternative airlines will be few and far between, as displaced Northwest passengers rush to get themselves reaccommodated. In such a scenario, your chances of finding yourself rebooked or refunded through Northwest's good offices range from slim to slimmer.
>> Advice <<
For context, I'm still 80% invested in stocks... which is to say I have a fairly high tolerance for risk. Still, if I had a refundable Northwest ticket, for travel on or after August 29, I would request my refund NOW and rebook all Northwest flights on other airlines. If my ticket were nonrefundable (as is the case with most discounted tickets), I would plan on calling Northwest immediately after the strike begins to request alternative transportation. Or, if my booking were made by a travel agent, I would put the agent on notice that I wanted to be rebooked as soon as Northwest's policy allowed. And, having done everything possible to achieve the best outcome, I would expect the worst.
>> More <<
o Northwest flight updates
o Further information on the labor negotiations
o The Northwest reservation line in the United States and Canada 800-225-2525.
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As Northwest Goes, So Goes Mesaba
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Mesaba Airlines, which operates as a Northwest Airlink affiliate, announced on Tuesday that if Northwest Airlines pilots go on strike on August 29th the airline will temporarily cease operations at the same time. Mesaba Airlines transports approximately 15,000 passengers a day, 79% of which transfer to Northwest Airlines flights at their hubs in Detroit and Minneapolis/St. Paul. The airline provides service to 91 cities in 19 states and 3 Canadian
Provinces (see listing below).
"We regret having to make a decision to temporarily suspend operations, but with almost 80% of our traffic connecting with Northwest Airlines it is not economically viable, in the short term, to continue operating," said Bryan K. Bedford, Mesaba's President & Chief Executive Officer. "A majority of our markets are served by only a few airlines, or in many cases, exclusively by Mesaba -- unfortunately a strike will create severe disruption and inconvenience for many travelers." Bedford added, "we remain hopeful the negotiators, on both sides, can come together to reach a settlement before the strike deadline."
Following is a list of communities served by the Mesaba Airlines/Northwest Airlink system. Communities marked with an asterisk are served exclusively by Northwest Airlink.
ILLINOIS KENTUCKY MINNESOTA
Bloomington Lexington Bemidji *
Champaign/Urbana Owensboro Brainerd *
Peoria Louisville Duluth
Rockford * Grand Rapids *
Moline/Quad Cities Hibbing *
MICHIGAN International Falls *
INDIANA Alpena * Rochester
Evansville Kalamazoo St. Cloud *
Ft. Wayne Benton Harbor * Thief River Falls *
Lafayette * Detroit
South Bend Escanaba NEBRASKA
Flint Lincoln
IOWA Houghton/Hancock * Omaha
Waterloo Lansing
Cedar Rapids Muskegon NEW YORK
Dubuque Marquette Binghamton
Des Moines Pellston * Buffalo
Ft. Dodge * Saginaw/Bay City Elmira
Mason City * Sault Ste. Marie * White Plains
Sioux City Traverse City Rochester
NORTH DAKOTA OHIO WISCONSIN
Bismarck Akron/Canton Appleton
Fargo Cleveland Wausau/Stevens Point
Grand Forks Columbus Eau Claire *
Cincinnati Green Bay
SOUTH DAKOTA Dayton Lacrosse
Aberdeen Toledo Madison
Watertown * Youngstown Rhinelander *
Sioux Falls
Pierre * PENNSYLVANIA CANADA
Allentown Ottawa, Ontario
TENNESSEE Erie Regina, Saskatchewan
Knoxville Harrisburg Thunder Bay, Ontario
Pittsburgh Montreal, Quebec
State College London, Ontario
VIRGINIA
Roanoke
WEST VIRGINIA
Charleston
* - Cities served exclusively by Mesaba Airlines
>> More <<
o Mesaba
o Northwest
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Delta Discounts & Bonus Miles
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Delta Air Lines is offering customers who purchase qualifying Delta tickets on Delta's SkyLinks website through September 1, 1998, discounts of 50 percent off a future round-trip coach class ticket, and up to 1,000 bonus SkyMiles.
When customers purchase a domestic round-trip Delta ticket of $229 or more, they will qualify for a 50 percent discount off a future round-trip coach ticket via a special toll-free number. This "certificateless" (as Delta calls it) promotion adds a customer locator code to the online confirmation screen, which the customer later uses to claim his 50%-off bonus.
Previously purchased or reissued tickets do not qualify for this offer. Travel on the qualifying ticket must be completed before the award ticket can be issued. And, as always, "Other important restrictions apply.
In addition to the bonus, Delta SkyMiles members making reservations through the SkyLinks Reservations Desk and using electronic ticketing can earn up to 1,000 bonus miles. First, they earn 500 bonus miles for each round-trip ticket booked and traveled (250 miles for one way). Plus, travelers who use electronic ticketing while making reservations through the Delta web site will receive an additional 500 bonus miles for each round-trip ticket booked and traveled (250 for one way). Members should allow six to eight weeks after their travel date for bonus miles to appear on their mileage summaries.
>> The Verdict <<
This offer passes The Crier's sniff test. If you're going to be traveling anyway, and you can meet the conditions of this promotion, you'll be getting a 25% discount off the total cost of the two tickets (the qualifying ticket and the 50%-off ticket), plus 1,000 bonus SkyMiles.
>> More <<
o For full details and restrictions
o Make your reservations on Delta's website
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Frequent Flyer Bonus or Upgrade for Asia Flights
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Cathay Pacific is offering frequent flyer bonus miles or an upgrade for first and business class passengers, applicable from September 1 this year. Passengers must depart the U.S. between September 1 and September 30, 1998, for Hong Kong or cities beyond, returning to the U.S. no later than October 31. Passengers can claim either 20,000 bonus miles or a confirmed business or first class round trip transpacific upgrade award for use in 1999.
>> More <<
Cathay's site
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Continental Discounts for Seniors
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Continental Airlines has rolled out new program for seniors called the Freedom Flight Club. The program offers seniors, age 62 or over, savings of 15 to 20 percent off everyday fares and virtually unlimited travel any day of the week.
Freedom Flight Club annual memberships are $75 for domestic and $125 for international travel. Discounts between 15 to 20 percent apply to any published fare, depending on the day of travel. For example, seniors save 20 percent when traveling Monday through Thursday, or on Saturday, and 15 percent on Friday and Sunday.
Proof of age is required to join the program. Reservations can be made through a travel agent or by calling the Freedom Reservation toll-free line at 800-441-1135 between 6:30 a.m.-10 p.m. CST.
>> More <<
Continental's site
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American BreakAAway Fares
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American Airlines is reviving its low-cost weekend getaways fares--BreakAAway Fares--for outbound travel on Saturdays with return travel the following Monday or Tuesday.
>> BreakAAway Fares" Details <<
Priced at $88-$298 round trip off-peak depending on distance of flight; 7-day advance purchase; Travel period Aug. 29 through Nov. 17; purchase tickets from Aug. 19 through Sept. 30; travel must originate on Saturday -- return travel must occur the immediately following Monday or Tuesday; tickets are non-refundable; available in select markets in the contiguous 48 states and Canada.
>> Off-Peak/Peak Pricing <<
Lowest (off-peak) BreakAAway Fares are available for departure after 2 p.m. on Saturday; off-peak return travel may occur any time Monday or Tuesday; Departure prior to 2 p.m. Saturday (peak) may be available at slightly higher prices; All pricing on transcontinental routes is at off-peak rates, which means travel may begin any time Saturday at the off-peak rate.
>> Sample BreakAAway Fares (off-peak prices) <<
$88 Round Trip $98 Round Trip
Dallas/Fort Worth-Shreveport Chicago-Shreveport
Chicago-Cincinnati New York (JFK)-Boston
Dallas/Fort Worth-Wichita Nashville-Raleigh/Durham
Chicago-Des Moines Washington D.C.-New York (JFK)
Miami-West Palm Beach Miami-Orlando
$158 Round Trip $198 Round Trip
Dallas/Fort Worth-Denver Dallas/Fort Worth-San Francisco
Chicago-New York (LGA-EWR) Miami-New York (LGA/JFK/EWR)
Dallas/Fort Worth-Chicago Chicago-Los Angeles
Chicago-Boston Dallas/Fort Worth-Boston
Miami-Atlanta New York (LGA)-Fort Lauderdale
$298 Round Trip
Los Angeles-Newark
Boston-San Francisco
San Jose-Washington D.C. (IAD)
Hartford-Orange County
Miami-Seattle
>> More <<
American's site
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Here's Wine In Your Sky
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It's an annual event at Business Traveler International: the Cellars in the Sky Business Class Wine Judging. This is the 10th time the judges have come down on business class wines, giving the winning airlines bragging rights for the next year.
The winners:
1. AOM French Airlines
2. Air New Zealand
3. KLM
4. American Airlines
5. Lan Chile
6. Malaysia Airlines
7. Emirates
8. South African Airways
9. Finnair
10. Asiana
The article points out, and it's worth remembering, that wines which please the palate at sea level may fare very differently at 35,000 feet. And vice versa. According to one airline's wine consultant, flyers lose 30% of their sense of taste at cruising altitude. And due to the effects of cabin pressure and low humidity, some tastes are accentuated, while others are dulled. So before you buy a case of that perky-but-demure little Chablis you so enjoyed on a recent flight, be sure that it tastes as good in your living room as it did inflight.
>> More <<
Business Traveler International
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