Issue #114  --  Oct. 5, 2000

<< U P F R O N T >>

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Competition--When it Rains, it Pours
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If you're a Crier reader, you know that we subscribe to the theory that competition fosters innovation and, ultimately, improves the lot of consumers. Most Crier issues are chock-full of special offers and incremental program changes. Competition, yes, but on a rather limited, tactical level.

This week, we report on no fewer than 3 significant competitive developments in the frequent flyer program space: the launch of the AOL AAdvantage program, Delta's "Always Double Miles" initiative, and Northwest's exclusion of CyberSavers from Worldperks mileage credit. It's a mixed bag.

Northwest's move is obviously a negative from a consumer standpoint. Hopefully, the outcry from WorldPerks members will be loud enough to get Northwest's attention and force them to reconsider and retract the restriction.

Just as clearly, American and Delta's moves are positives. Delta's in particular is a substantive, simple-to-understand enhancement that adds real value to SkyMiles. The AOL AAdvantage program, on the other hand, is very much a work-in-progress -- confusing, underdeveloped and, arguably, released before its time. Without flaying American ad nauseum for over-promising and under-delivering, in the short term, Delta's move trumps American's. Longer term, we expect AOL AAdvantage to do its illustrious parents proud. But how long "long" is remains to be seen.

<< O N S I T E >>

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

David poses the age-old "Which program for me?" question. Tad has a few things to say about roomy, and not so roomy, seats. Anne wants to transfer her miles to her spouse. Best let his NW miles expires and wants to get them back. Jim is searching for a better online reservations site. And Ronald shares some mileage tips.

Do you have questions? Do you have answers? Post them to the Forum!

>> More <<
The FrequentFlier Forum

<< M I L E S >>

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American, AOL Launch New (Sort of) Program
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Back in January, American and AOL jointly announced the upcoming launch of the AOL AAdvantage Rewards program. This, we all thought at the time, is going to be huge! American, the leader in frequent flyer marketing... AOL, the Internet incarnate... online, offline... miles for everything, unlimited awards.

Well, not quite.

What launched this week under the name AOL AAdvantage Rewards is really just AAdvantage-plus, the "plus" referring to a few new online earning opportunities and a few new redemption options.

We have been assured by representatives of both American and AOL that there's much more in the pipeline. But for now, here's what you get when you join AOL AAdvantage--

 - The current AAdvantage program, plus...
 - The chance to earn miles for online purchases at Sharper Image and Giftcertificates.com, for Time Magazine subscriptions, and for taking online surveys.
 - The chance to redeem miles for AOL service (one month for 2,000 miles), books, videos, CDs, and other merchandise.

Apparently, even AOL is less than overwhelmed by Rewards as at press time there was nary a mention of the program on AOL's homepage (http://www.aol.com/).

Setting aside our disappointment in the program itself, the launch promotion is a doozy.

The AOL AAdvantage Rewards "Million Miles A Day" sweepstakes will award 1 million miles daily to 1 AOL AAdvantage Rewards member for 30 days, from October 3 until November 1. Anyone on the Internet can enter to win by going to http://www.aolaadvantage.com or AOL Keyword: Rewards. Register as a new AOL AAdvantage Rewards member and choose to enter the sweepstakes.

If, incidentally, you are one of the 2 million+ members of AOL's previous program, AOL Rewards, you should have received a notice from AOL advising that the old program will be terminated, and all points will expire on April 2, 2001. In order to have your AOL Rewards points converted to miles and transferred to the new program, you will have to follow the prescribed procedure. Your account will NOT be converted automatically.

>> More <<
AOL AAdvantage Rewards

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Delta's Mileage Card: Now "Always Double Miles"
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Beginning October 1, Delta SkyMiles members earn two SkyMiles for every eligible dollar charged to the SkyMiles credit card for purchases at supermarkets, gas stations, drugstores, home improvement stores, the U.S. Postal Service, wireless phone bills and Delta Air Lines. For other purchases, the old rate of one SkyMile for every eligible dollar charged still applies.

If you don't already have a SkyMiles credit card, Delta is offering aggressive sign-up bonuses to get you started.

The first 10,000 people to apply for the new Delta SkyMiles Credit Card online will be eligible to have their frequent flyer miles matched from any one airline, including Delta - up to 50,000 miles - and deposited in their SkyMiles account. Delivery of miles is contingent on application approval and meeting a minimum spending requirement of $10,000 within six months of Card membership.

In addition, all new cardmembers, (with the exception of the first 10,000) who apply for the card by December 31, 2000, will have the opportunity to double their traditional welcome bonus mileage. Specific bonuses and spending requirements are based on the level of the card:

1. Classic Delta SkyMiles cardmembers will be awarded a welcome bonus of 5,000 SkyMiles upon their first purchase with the card, with the potential to double it if they spend $5,000 within the first six months.

2. Gold Delta SkyMiles cardmembers will receive a welcome bonus of 10,000 Delta SkyMiles upon their first purchase, which can double to 20,000 if $10,000 is spent in the first six months.

3. Platinum Delta SkyMiles cardmembers will receive 15,000 Bonus SkyMiles upon their first purchase - of which 10,000 are SkyMiles and 5,000 are Base Miles, which count toward Medallion status. If the cardmember spends $15,000 within the first six months, the bonus will double to 30,000 SkyMiles (25,000 SkyMiles, 5,000 Base Miles).

If you are among the first 10,000 applicants but do not meet the spending requirements, you will still receive the traditional welcome bonus given to your particular card.

>> More <<
Delta

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Northwest Says "No" to CyberSaver Miles
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From this week's Northwest CyberSaver e-mail: "Please Note: Effective October 4, 2000, CyberSavers and CyberSavers Extra! fares will not be eligible for WorldPerks mileage credit."

No explanation. No advance notice. Ouch!

The issue is not just that NW has acted imperiously or that they have degraded the WorldPerks program. What's of greater concern is that other programs will emulate NW and the "no miles for cyberfares" rule will become an industry standard.

The link below is to the feedback section on NW's website. Using it is an easy way to make your feelings known. Even better would be a letter to NW's management.

[Thanks to both Gregory and Kristine for bringing the NW announcement to our attention.]

>> More <<
Northwest Feedback

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TWA Gives Away Free First Class Tickets
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Through December 15th, TWA Aviators members who spend $1,500 or more on TWA travel will earn a free first-class ticket good for travel within the continental U.S., Canada and to such Caribbean destinations as San Juan, Puerto Rico, Puerto Plata, Aruba or Santo Domingo.

To qualify for the bonus ticket, register for the offer and spend at least $1,500 on TWA published fares for flights between October 1st and December 15th, 2000. Qualifying members will automatically receive a certificate for one Trans World First ticket. TWA is also offering a free 6-month Ambassadors Club membership and an Aviators Elite privilege status card valid through 2001 to passengers who spend at least $2,500 between now and December 15th.

Aviators members must register online or call 800-325-4815 and enter code 85105 before taking their first qualifying flight. Offer is good for up to 2 free Trans World First tickets, but only 1 Ambassadors Club membership and Elite card.

>> More <<
TWA

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View FlightFund Account Online, Earn Bonus Miles
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FlightFund members can now access their account information online, including current mileage balance, current membership level and the number of miles earned towards 2001 Elite status. Members can also update their own mailing address information.

Use the new service by December 31, 2000, and earn a 500-mile bonus.

>> More <<
America West

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Virgin Upgrades Flying Club Program
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Virgin has been busy making its frequent flyer program, Flying Club, bigger and better.

In the "better" department, Virgin has fallen in line with most U.S. carriers and extended mileage expiration indefinitely, so long as members have any account activity during a 3-year period.

Premium Economy flyers now earn 50% more miles on all flights. In addition, the number of miles a member needs for reward travel has decreased on selected routes in Upper Class, Premium Economy and Economy. For example, to earn a free Premium Economy roundtrip ticket to London from New York requires 5 Premium Economy roundtrip flights, instead of 11 Premium Economy flights under the previous guidelines.

Silver and Gold now include complimentary first class space-available upgrades on Heathrow Express and Gatwick Express trains; 24-hour Global Assistance; and a discount on long-term parking with Parking Express at Heathrow or Gatwick.

Flying Club has also added 4 new airlines to the earning and rewards roster (Air Jamaica, Hawaiian Airlines, National Airlines and Nationwide Airlines) and signed its first cruise partner, Renaissance Cruises.

New hotel partners include Le Petit Blanc and Taj Hotels.

All new enhancements go into effect on October 1, 2000. Miles earned prior to this date are not eligible for the new program enhancements. Members spending miles prior to October 1, but not traveling until after this date, will receive a refund for the difference in mileage.

>> More <<
Virgin

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Do Good, Earn ClickMiles
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Now through October 14, earn 3 ClickMiles for every dollar you donate online to Big Brothers Big Sisters, plus the following bonuses--

 - Donate $50 to $99 and receive 100 Bonus ClickMiles
 - Donate between $100 and $999 and receive 500 Bonus ClickMiles
 - Donate $1,000 or more and receive 10,000 Bonus ClickMiles

To make a donation, visit http://www.sf-bbbs.org/netcentives.html. In order to earn ClickMiles, make sure you opt-in to the ClickRewards program on the donation page.

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Correction - AAdvantage Bonuses for U.S.-Japan Flights
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Last week we reported on the AAdvantage bonus mile offer for full-fare American flights between the U.S. and Japan, October 1, 2000 through March 31, 2001. We neglected to mention that the promotion also includes U.S. - Japan flights operated by Japan Airlines.

<< S T E A L S & D E A L S >>

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Deal Alert from SmarterLiving.com
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Two hot deals from SmarterLiving.com...

>> Fly Coast to Coast for $198 R/T

Southwest Airlines has extended its coast-to-coast sale, with round-trip fares starting at $198. Travel is valid from October 10 through January 19, 2001. Purchase tickets by Thursday, October 26. Most major airlines have matched this sale.

For more details, go here.

>> Fare War for Fall and Winter Travel

US Airways has released a sale on domestic, Canadian, and Caribbean travel, with round-trip fares starting at $136. All travel must be completed by February 15, 2001. Tickets must be purchased by Friday, October 13. An additional five percent discount applies to tickets purchased online. Most major airlines have released similar sales.

For more details, go here.

<< B U S I N E S S T R A V E L T I P S >>

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Surviving the Airport
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The following is part of a continuing series of business travel tips from Chris McGinnis's "The Unofficial Business Traveler's Pocket Guide--165 Tips Even the Best Business Travelers May Not Know."

>> Flight Cancellations

As in delay situations, go to an airport pay phone as soon as you hear a call for cancellation, and make a reservation on the next flight to your destination on that airline or a competing airline. Most of the time airline personnel will try to book everyone on their next flight out. Shrewd travelers know that the gate agents will put you on a competitor's next flight--but only if you ask. Sometimes you can build your own substitute itinerary via another airline or another hub better than the gate agent can. Go ahead and make suggestions.

Of course, the simplest way to avoid delay and cancellation situations is to fly airlines that maintain good on-time performance rankings. Or you can fly at times that the skies are not so congested. (Your chances of being delayed are greater from 4 p.m. until 9 p.m.) Airline on-time performance rankings are made public each month by the Department of Transportation in its "Air Travel Consumer Report" (also on the web at www.dor.gov). Flights are listed individually and by airline composite.

Chris McGinnis

Travel Skills Group
http://www.travelskills.com

<< R E A D E R R A N T S & R A V E S >>

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Ivy Yes, Cookies No
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[We're running long with all the frequent flyer program news, so we've combined "Rants & Raves" with "Frequent Flier Funnies" this week.]

I thought this was funny............

Once, flying from Florida to New York, I was seated behind a grandmotherly type woman who had spent the last day baking cookies. Since, there was no room in the overhead bin, she put the box of cookies under her seat. The lady seated next to me was traveling with her Golden Retriever guide dog, Ivy. It was Ivy's first flight and the noise plus space constriction must have been overwhelming to her. She lay down on the floor with her head tucked under the seat and seemed very content and happy as she would reappear periodically, smiling at me and the owner. Unbeknownst to us, Ivy had spotted the cookies! Slowly, throughout the flight Ivy ate the entire box of expensive gourmet cookies that the passenger in front had baked and stowed under her seat. Upon arrival in New York, the woman reached down to get her cookies only to find the box chewed through and the cookies missing. The woman was furious, but Ivy thought they must have been for her, they were right there in her space. I doubt I could have resisted them either.

 - Robby

Until next week...