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

Industry Newsbites (Signs of the Times)
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Earnings season is again upon us, with financial reports for the 3rd-quarter (Jul. - Sept.) continuing to trickle in over the next week or so.

Among the early results: Southwest managed a profit of $119 million, up from $106 million in the same period last year, and Delta today reported a whopping $651 million loss, almost quadruple the $168 million loss sustained in 2003.

We'll have a complete roundup when all the results are in.

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America West is in discussions which could lead to the complete or partial buyout of Indianapolis-based discounter ATA, which is running out of cash and believed to be on the brink of filing for Chapter 11 bankruptcy protection.

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Air Canada, newly emerged from bankruptcy protection, is attempting to shed its frayed image by adopting new aircraft liveries and redesigned uniforms for front-line staff.

More substantively, Air Canada has streamlined its pricing, in the process eliminating "Econo" fares, which required a Saturday night stay.

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We're seeing an outbreak of activity among loyalty/rewards credit cards, most notably the co-branding of Diners and MasterCard cards and the launch of Citibank's new proprietary travel-rewards card, PremierPass (see "Miles & Points" below).

Significantly, these cards compete directly with airline affinity cards and their proliferation may signal an erosion of consumer loyalty toward airline programs.

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

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

In the "Airline Programs" Forum, Mike is looking for an alternative to United. "United had exactly TWO upgrade seats from SFO to NRT available in November... on dates that were miles from the upgradeable return dates. United wanted to charge me the "upgradeable price" for a ticket (extra $500) but not provide an upgrade? That's stealing... time to take my 6 1K cards and handful of PE cards and ride into the sunset, as well as ban all travel on United for business travel for my company."

In the "Hotel Programs" Forum, Cloe wonders: "Do nights 'purchased' with points count towards things like 4 stays for Gold or not?"

In the "Credit Card Programs" Forum, Ken is evaluating the Chase Travel Rewards card. "This sounds like a good deal -- and maybe better than the Continental MasterCard that has an annual fee. What am I missing? Is there a downside or a catch?"

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

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

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

New from American Express
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There's news on 2 fronts from Amex.

1) Amex has added the following new benefits to the Executive Business Card: annual complimentary companion ticket when charging a domestic coach ticket; membership in the Starwood Preferred Business Program; free emergency roadside assistance.

-> More: http://home3.americanexpress.com/corp/pc/2004/open_9_9.asp

2) The new co-branded Amex-Costco TrueEarnings card is a no-annual-fee rebate card, offering cardholders a 1% rebate on all charges, except for travel and dining out, which earn rebates of 2% and 3% respectively.

The rebate is paid annually, in the form of a coupon redeemable for cash or purchases at Costco stores.

-> More: http://home3.americanexpress.com/corp/pc/2004/trueearnings.asp

Baymont Offers Midwest Miles Bonus
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Between November 1, 2004 and January 15, 2005, members of Baymont Guest Ovations will earn a bonus of 500 Midwest Miles with a qualified Baymont Inns and Suites stay. Bonus may only be earned once per member.

Registration is required (offer code MWBY).

-> More: https://www.guestovations.com/login.cfm

Citibank Rolls Out New Rewards Card
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Aiming to combine the best of airline-specific cards and multi-airline bank cards (e.g. the heavily promoted CapitalOne Go Miles card), Citibank has launched the Citi PremiumPass credit card.

The card comes in 2 flavors, regular and Elite Level. The former has no annual fee, the latter charges $75 per year. Both carry a 14.7% variable-rate APR.

Rather confusingly, cardholders earn "ThankYou" points 2 or 3 different ways, depending on the type of card and transaction:

With the regular card: 1) earn 1 ThankYou Purchase Point for every $1 spent on all purchases charged to the card; and 2) earn 1 ThankYou Flight Point for every 3 miles flown using airline tickets charged to the card.

A maximum of 100,000 points may be earned per calendar year, 50,000 of which may be flight points.

With the Elite Level card: 1) earn 1 ThankYou Purchase Point for every $1 spent on most purchases charged to the card; 2) earn 2 points (1 ThankYou Select Spend Point plus 1 ThankYou Purchase Point) for every $1 spent on purchases made at supermarkets, drug stores, gas stations, and commuter transportation and parking merchants; and 3) earn 1 ThankYou Flight Point for every mile flown using airline tickets charged to the card.

A maximum of 200,000 points may be earned per calendar year, 100,000 of which may be flight points. When redeeming, cardholders must use at least as many flight points as purchase points.

When it comes to redemption, the award chart includes merchandise, gift certificates, calling cards and travel. As a point of reference, a domestic roundtrip coach ticket is offered for 25,000 points, and a roundtrip coach ticket to Europe is priced at 50,000 points.

-> More: http://citibank.com/us/cards/cardserv/premierpass/consumer/index.jsp#

Continental Reprises Mileage Transfer
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Between Oct. 15 and Dec. 31, OnePass members may transfer miles to other OnePass accounts by paying a service charge of $7.50 per 500 miles transferred. Transfers must be made in blocks of 500 miles, with a minimum of 2,500. There's no limit to the number of miles that can be transferred.

At 1.5 cents per mile, that's not exactly a bargain. But it's handy.

-> More: http://continental.com/OnePass/news/continental/co_20041015_01.asp

Diners, MasterCard On Track to Co-Brand
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Previously reported plans to allow Diners Club cardholders to use their cards at merchants accepting MasterCard will be at least partly in place before the end of this year. With the MasterCard logo imprinted on them, Diner Club cards will be accepted by 22 million vendors, rather than the 8.3 million currently.

According to Diners: "The redesigned cards will be issued in a phased approach, beginning with corporate and personal Diners Club cards across Canada in November 2004. Diners Club also plans to offer cards enhanced with MasterCard acceptance to new U.S. corporate customers by the end of this year. Phase two of the implementation will include distribution of the enhanced cards to existing Diners Club cardmembers in the U.S. Additional details will be made available at a later date."

-> More: http://dinersclubnorthamerica.com/US/en/us_home_flash.jhtml

Marriott, Asiana Team Up
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Asiana is the 26th and latest airline partner in the Marriott Rewards program.

Marriott Rewards members can earn 3 Asiana Club miles per $1 spent at Marriott, Renaissance, JW Marriott, and Marriott Vacation Club International, or 1 mile per $1 spent at Courtyard, Residence Inn, Fairfield Inn, TownePlace Suites, and SpringHill Suites.

With the tie-up, Marriott Rewards members may also convert Rewards points into Asiana Club miles.

-> More: http://marriott.com/rewards/rewards.mi

SRS-WORLDHOTELS' "Suite Nights and Miles in the City"
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Through Nov. 30, qualifying suite stays at SRS-WORLDHOTELS in Australia, Europe, South America, and Asia will earn 5,000 miles per night in the programs of American AAdvantage, ANA Mileage Club, Asiana Club, Delta SkyMiles, Lufthansa Miles & More, Northwest WorldPerks, Thai Royal Orchid Plus, United Mileage Plus or Varig Smiles.

To earn the bonus, suites must be booked at the "Suite Nights and Miles in the City" rate.

-> More: http://www.srs-worldhotels.net/openworld/

United Offers More Elite-Qualifying Miles
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Between Oct. 25 and Dec. 15, Mileage Plus members can earn double elite-qualifying miles and segments for United, United Express, and Ted flights by registering and paying a $150 fee.

The bonus miles and segments will count toward 2005 Premier, Premier Executive and 1K status, but may not be redeemed for awards.

-> More: http://www.united.com/page/article/0,6722,51086,00.html

United Adds Elite Benefits
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Separate from the elite-mile promotion above, United has announced 3 elite-related program enhancements.

1) Beginning in 2005, Mileage Plus members can receive two additional systemwide upgrades for each additional 50,000 elite-qualifying miles (EQMs) above 100,000 EQMs, or for each additional 50 elite-qualifying segments (EQSs) above 100 EQSs.

-> More: http://www.united.com/mpreward

2) Mileage Plus members who earn 125,000 EQMs/125 EQSs or more by the end of 2004 can give Premier status to a family member, friend or colleague and choose to receive for themselves either double flight miles during Apr. 2005 or 2 confirmed regional upgrades valid for 1 year from the date issued.

-> More: http://www.united.com/mpreward

3) Mileage Plus members who hold Million Miler Flyer status on Dec. 31, 2004, will receive 2 confirmed regional upgrades good for future travel within North America, including Hawaii, Canada, Mexico, Central America and the Caribbean. Upgrades will be valid through Jan. 2006.

-> More: http://united.com/page/article/1,,50027,00.html

US Airways Bonus for Caribbean/L. America
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Through Jan. 31, 2005, Dividend Miles members will earn a 2,500-mile bonus for US Airways flights to/from the Caribbean and Latin America.

Bonus may only be earned once. Registration is not required.

-> More: http://usairways.com/dividendmiles/offers/usairways.htm#latin_am_promo

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

Deal Alert from SmarterLiving.com
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1) Mexico Sale Fares on America West from $208

America West has announced sale fares to promote its new nonstop service between California and several cities in Mexico. Prices start at $208 roundtrip, and travel is valid through Feb. 16, 2005.

Book tickets by Thursday, Oct. 28.

-> More: http://www.smarterliving.com/air/deal.php?id=7613

2) Hawaii Sale Fares on Aloha from $298

To promote its new service to/from San Diego, Aloha is offering sale fares on many of its popular routes. Prices start at $298 roundtrip, and travel is valid through June 15, 2005.

Book tickets at least 1 day in advance, and by Tuesday, Oct. 26.

-> More: http://www.smarterliving.com/air/deal.php?id=7409

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

Feedback from the Frontlines of Travel
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"I have been trying to use up my 300,000 US Airways miles & at www.milepoint.com you have to spend $50 to purchase a US Air Visa, then transfer your miles (at a great loss) to one gift certificate program, then to another gift certificate program, & then finally to the merchant. They make it so complicated it's ridiculous." (Joe)

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"I just flew on the 12th from IAD-FRA in Business class. I hold a Global Service 1K card. The Purser started to take dinner orders from row 8 working himself back to row 15. This was the first time that I experienced this. Usually they ask the 1K's first what they would like to order but this time your status ment nothing. When he got to me in seat 12F he asked and I gave him my selection. Then he asked what my second choice was. I said the first and that I didn't want a second choice. He didn't seem to care about what I said nor what my status was. I did in the end get what I had ordered. Has United changed there policy of taking orders by elite status??? I plan to follow up ion this when I get back home since I don't have the GS email address with me.

"I connected in FRA with a Lufthansa flight to IST, also in "Business" but it was really only economy seating with the curtains dividing the two classes! Very poor seats for the price. This was only about a three hour flight.

"Next in IST I connected with a Turkish Air flight to Tashkent, a 5 hour trip. They were using a B737-800 but they also had economy seats for the business class section with a tray installed between the window and isle seats. No room to bend down and put your shoes back on. Another lousy business class rip off.

"Flying back the same route on the 28th. I hope that United doesn't pull the same thing on the return flight UA-933 FRA-IAD." (Karl)

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Until next week...