Northwest, Continental Proceed with Get-Together
============================================

In the face of considerable hemming and hawing by the Departments of Transportation and Justice--including a court challenge which will likely take years to adjudicate--Northwest and Continental have gone ahead with their sort-of-a-merger plans.

In brief, Northwest has purchased a majority share of Continental's voting stock, but will not exercise its voting rights for the next six years at least. As I've said here before, I'd favor Continental controlling Northwest, but not the reverse (on the principle that in any corporate pairing, the best-practices partner should be the leader). I can only hope that by the time Northwest begins controlling Continental, it will have evolved into a company worthy of that role.

Issues of corporate governance aside, the payoff for consumers in all this is in the area of frequent flyer programs. And, as hoped, it's a pretty good payoff indeed. (The deal also calls for code sharing between the two carriers, to begin on December 12.)

Members of either program will be able to earn miles on either airline and will be able to redeem miles for free travel on either airline. As a result, air travelers will nearly double their opportunities to accrue mileage. WorldPerks and OnePass members will have access to award travel to many additional domestic and international destinations when redeeming frequent flyer miles. Additionally, members will be able to reciprocally earn and enjoy elite status on both Continental and Northwest.

Reciprocity in mileage earning takes effect December 6, 1998, subject to regulatory review. Members of one frequent flyer program may request award travel from the other program beginning February 1, 1999, for travel beginning March 1, 1999, again pending regulatory review.

What is conspicuously absent from this list of enhancements is mileage pooling: the ability to combine OnePass miles with WorldPerks miles to redeem an award in one or the other program. While we'd like to see pooling take its place on the benefits roster--in future if not now--Continental and Northwest are to be commended for adding value to both of their programs through the linkage.

>> More <<

• Northwest
• Continental

Continental Airlines Enhances OnePass
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Over and above the enhancements to Continental's OnePass program flowing from the merger with Northwest, the airline has been working on additional improvements to what was already a fine program, as follows

>> Off-Peak Rewards

Effective March 1, 1999, OnePass members can claim a domestic coach reward ticket during off-peak periods (Sept. - May) at a reduced redemption level of 20,000 miles. Peak domestic coach reward travel remains at 25,000 miles for peak travel (June -- Aug.).

>> No Blackout Dates for EasyPass Rewards

Flying on EasyPass rewards (rewards with no seat capacity restrictions) will be easier than before, because there will be no blackout dates. Blackout dates for EasyPass rewards have been eliminated, so members can now use their OnePass miles to fly on an EasyPass reward any day of the year, effective March 1, 1999.

>> New Platinum Elite Level

Starting March 1, the OnePass Elite program will be enhanced to offer Silver, Gold and a new Platinum Elite level. To qualify, OnePass members must fly 75,000 miles or 90 segments for Platinum Elite, 50,000 miles or 60 segments for Gold Elite, and 25,000 miles or 30 segments for Silver Elite.

As part of the transition to the new Elite levels, OnePass customers who would have qualified for Bronze Elite in 1998 by flying 20,000 miles (or 25 segments) will automatically become Silver Elites in 1999. OnePass members who would have qualified for Silver status by flying 35,000 miles (or 40 segments) in 1998 will automatically become Gold Elites in 1999.

As the highest Elite tier, Platinum Elite members receive a 125 percent mileage bonus for every paid flight, unlimited confirmed upgrades from any paid fare, unlimited companion upgrades, capacity-free rewards at reduced mileage levels, guaranteed reservations with every full-fare coach ticket and more.

>> More <<
Continental's website

Northwest Reaches Accord with Another Labor Group
==============================================

In other Northwest news, the airline has taken another step forward in getting its labor-management house in order.

The union that represents Northwest Airlines' flight dispatchers and operations planners has ratified a contract that gives them a 14 percent pay raise over five years.

In addition to the pay raise, the 171 union members will receive a 32 percent increase in their retirement pension plan and a bonus payment equal to 3.5 percent of their wages retroactive to August 1, 1996, when the last contract expired.

Northwest now has reached agreements with four of its six unions.

Dollar Deal
==============

From December 1, 1998, until June 30, 1999, Visa Gold cardholders will be able to rent a Dollar car for four days or more and get one of those days at no extra charge when using CD#VS4444.

Reservations for this offer can be made by calling your travel agent or by calling the Dollar worldwide reservations center toll-free, at 1-800-800-4000.

Offers subject to availability at participating locations through June 30, 1999. Twenty-four hour advance reservations are required. Offer applies to time and mileage charges only. A limited number of vehicles are available for this offer. Check with Dollar for other terms and conditions.

>> More <<
Dollar online

America West "Deal" for Speed Dialers
====================================

Apparently America West is one of the few travel providers whose marketing people don't read this newsletter.

We keep chastising them (and anyone else who acts similarly) for running special offers which must be acted upon so quickly that the promotions are effectively impossible to take advantage of. It's the "You snooze, you lose" approach, raised to the level of absurdity. And it's worse than annoying... it borders on the misleading. The headlines shout "Cheap Tickets," while the small print goes on to say that you must book your flight before taking another breath. Which gives the whole package the stench of bait-and-switch.

If you're wondering what I'm talking about, here's the deal: cheap America West tickets (from $74 roundtrip in some shorthaul markets), that must be purchased by end of day December 3, for travel between December 13 and March 4. No complaints about the pricing, or about the travel period. But, again, to announce this on November 30, with a December 3 deadline...

>> More <<
America West's site

America West Still at Odds with Flight Attendants
================================================

Misguided marketing isn't America West's only problem.

Labor problems continue to bedevil the carrier, this time in their talks with flight attendants.

America West Airlines and the Association of Flight Attendants (AFA) have received confirmation from the National Mediation Board (NMB) that negotiations for an initial collective bargaining agreement will resume on December 1 and continue through December 4, 1998. Also, the NMB advised that it will not act on AFA's request to terminate negotiations until America West has had an opportunity to reply and gave the Airline until December 11, 1998 to submit its response.

Under the Railway Labor Act, America West flight attendants will not be allowed to take any work action, including a strike, during negotiations, or during a 30-day cooling off period following the termination of negotiations.

This suggests that travelers and travel agents--many of whom have steered clear of America West for fear of a possible strike--should be able to book holiday travel without concern of being stranded by a strike-grounded airline.

On the other hand, given the choice, I'd have to choose to be served by a flight attendant who was satisfied with his or her salary-and-benefits package over one who felt underpaid and underappreciated.

Southwest--the Real Deal
==========================

Here's a nice counterpoint to the America West "deal" referenced above.

From December 1 through December 16, 1998, customers may purchase travel on Southwest Airlines for $99 or less, each way, based on roundtrip purchase*. Examples: Oakland to Baltimore is $99 each way, based on roundtrip purchase; Los Angeles to Tampa is $99 each way; and Chicago to Phoenix is $99 each way.

Shorter flights also are also being discounted. Albuquerque to Phoenix is $39 each way, based on roundtrip purchase; $49 each way between Austin and Dallas; $39 each way between Baltimore/Washington and Manchester; $39 each way between Ft. Lauderdale and Orlando; and $49 between Los Angeles and Oakland. (*Flights to and from the Florida cities of Ft. Lauderdale, Tampa, Jacksonville, and Orlando will not be available from March 12 through April 2, 1999.)

Tickets must be purchased by December 16, 1998 and are good for travel through April 2, 1999. Fares are listed each way with roundtrip purchase and do not include airport taxes of up to $12 roundtrip or a Federal fee of $2 per segment. Tickets must be purchased at least seven days before departure and require at least a one-night stay. Seats are limited and will not be available on some flights that operate during very busy travel times or the Christmas and New Year holiday periods. Tickets are nonrefundable, but if unused, may be applied toward future travel on Southwest Airlines. Fares are subject to change until ticketed.

>> More <<
Southwest's website

AirTran Dealing, Too
========================

AirTran just announced its own holiday sale for select cities throughout its system. AirTran sale fares range from $39 to $99 one-way for travel from December 6, 1998 through January 31, 1999. A three-day advance purchase is required and all tickets must be purchased by December 10, 1998.

Sample fares (travel may originate in either city; fares are one-way):

Rules and restrictions: All fares are one-way. All fares are non-refundable, and a $45 per person fee applies to any change made after purchase plus any applicable increase in airfare. Three-day advance purchase required. All tickets must be purchased by December 10, 1998. All travel must be completed by January 31, 1999. Travel to and from Richmond must be completed by January 4, 1999. Seats are limited, subject to availability and may not be available on all flights. Fares and schedules are subject to change without notice. Travel is blacked out December 23 - 27, 1998 and January 3, 1999

>> More <<
AirTran website, or call 1-800-AIRTRAN

Carry-on Conflict
==========================================

Just when it seemed the airlines were getting serious about controlling the amount of carry-on baggage...

Continental Airlines has issued letters to United Airlines and Denver International Airport requesting that they immediately change their plans to restrict carry-on baggage by installing templates or baggage sizers at x-ray security checkpoints at DIA. This action reflects Continental's concerns at other airports throughout its system that it finds sizers to be an unacceptable solution to carry-on baggage issues.

According to Continental: "Continental believes carry-on baggage should be managed individually by airlines, since policies vary among carriers. Continental is in the midst of a $14 million retrofit project to install expanded overhead bins on more than 150 aircraft. It is also taking delivery of more new aircraft, which have more in-cabin storage space than any other airline."

Installation of sizers is part of a trend at major airlines to crack down on passengers' over-reliance on carry-on baggage. For instance, a flight attendants' union representative from one major airline was quoted in the November 2 Aviation Daily as saying that sizers would help remedy the "spoiled-brat petulance" of carry-on abusers.

Continental is raising the issue now in Denver to prevent United's installation of sizers on x-ray machines located at three security checkpoints which United controls at DIA and shares with other carriers. Continental hopes to avoid the institution of a lawsuit such as it brought in San Diego, where Continental brought an action against Delta Air Lines to have Delta's sizers removed at San Diego International Airport. Delta has refused to do so voluntarily.

This is a thorny issue. On the one hand, I wouldn't want to see Continental effectively penalized for attempting to cater to passengers' needs (by enlarging carry-on bins), while the rest of the industry adopts a lowest-common-denominator policy. On the other hand, it would be a travesty if any single airline's refusal to toe the line, even if for the best of reasons, delayed the implementation of a solution to the carry-it-all-on problem. For now, and with some reservations, I come down against Continental. I fly many airlines, and I certainly appreciate larger stowage bins. But I want the problem fixed systemwide, industrywide, and sooner rather than later. As a practical matter, Continental's policy will hinder more than it will help.

Other opinions? Send me an e-mail. (I'm just one of the herd, whose judgement may have been impaired by one too many departure delays or boarding bottlenecks, caused by too many people carrying on too many bags.)

United Miles for Volunteers
=============================

Just in time for those seasonal impulses to act charitably toward thy neighbor, United is rolling out a program which rewards college students with miles when they participate in selected charities.

United Airlines, in partnership with America's Promise -- The Alliance for Youth, is offering 100 million Mileage Plus frequent flier miles to community volunteerism when it introduces its United College Plus VolunteerMiles program. The program recognizes community achievement of America's youth by rewarding college students for volunteering their time to designated national charities or non-profit organizations.

"With VolunteerMiles for college students, we are expanding our frequent flier program to reward involvement at the community level. In essence, we're helping to create an army of supporters for some very worthwhile non-profit organizations," said United Airlines Chairman & Chief Executive Officer Gerald Greenwald. "This type of incentive program seeks to recognize and reward cooperative service. It is good for the bottom line and good for the soul."

To earn VolunteerMiles, students must be enrolled full-time at a four-year college or university in the United States, and must first enroll in United College Plus, which provides college students with Mileage Plus benefits, discounted travel, and mileage awards for college achievement.

VolunteerMiles participants will earn 5,000 Mileage Plus miles for every 50 hours of volunteer work for up to two of the six designated non-profit organizations, including: Habitat for Humanity, the Special Olympics, the Make-A-Wish Foundation, (One-to-One) - The National Mentoring Partnership, the "I Have a Dream" Foundation, and Best Buddies International. The VolunteerMiles program allows for 10,000 college students to earn up to 10,000 miles for their community efforts during each twelve-month school year period between August 1 and July 31, and has the potential to create 1 million hours of volunteer time for the non-profit organizations.

According to United, "The VolunteerMiles program reflects United Airlines' belief in community partnerships built at a local level to help improve the quality of life for families and to open up life-changing opportunities for individuals. The airline believes in encouraging all of its employees to volunteer their time and their skills to improve educational, workplace and community development opportunities in their neighborhoods. United supports organizations such as Special Olympics and the Welfare to Work Partnership, and is pioneering efforts such as The Believer's Project, "Take Your Community to Work Day" and United Airlines Fantasy Flights."

Using mileage to reward charitable behavior... works for me. (Yes, of course there's a commercial motive underlying the whole endeavor. But it's commercialism at its most enlightened.)

If you're a college student, you can enroll in College Plus at the CP website referenced below.

>> More <<
The United College Plus website

New @ FrequentFlier.com
=============================

If you haven't had a chance to try out the new voting script on FrequentFlier.com, consider this is a reminder. And if you have voted, you may want to go back and check the most recent results.

Currently, four polls are up and running:

• Best U.S./Canadian frequent flyer program
• Best hotel chain
• Factors influencing choice of airline
• The Northwest-Continental merger: pro or con

In the coming weeks, we'll put up a poll on the carry-on issue.

>> More <<
Cast YOUR Vote!

$299 to Spain on Spanair... Extended
=================================

Spanair will extend the expiration date of its popular $299 round-trip fare to seven cities in Spain from December 14, 1998 to March 31, 1999. The airline will continue to provide a 50 percent companion fare when purchasing a full business or economy fare on an open-ended basis past the original March 31, 1999 deadline.

The $299 round-trip airfare to seven cities in Spain includes Madrid, Barcelona, Bilbao, Santiago, Malaga, Palma de Mallorca and Mahon. To fly on Spanair to the Canary Islands is $369 round-trip. These fares are nonrefundable and require a Saturday night stayover. No stopovers or changes are permitted and tickets must be purchased within 72 hours of making a reservation.

Travelers booking a full fare ticket in business class or coach (C, M and B class fares) qualify for another ticket at 50 percent of the full fare. The passengers must fly on the same itinerary in the same class of service.

Spanair operates the only nonstop service between Washington Dulles International Airport and Madrid's Barajas Airport five days a week with Boeing 767-300 aircraft.

At those prices, if you've got a few days, you almost can't afford NOT to see Spain.

>> More <<

• For reservations contact a travel agent or Spanair at 1-888-545-5757.
• Spanair online

No Deal Between PAL and Cathay
===============================

The drama of Philippine Airlines' demise and subsequent revival has taken another unexpected turn, throwing the future of Asia's oldest airline back into doubt.

Earlier this week, Cathay announced it would not invest in PAL, for reasons left unspecified. Among the possible reasons: PAL's $2 billion in outstanding debt, and issues of management control of PAL's operations. Under terms of the agreement made public early in the negotiations, Cathay's investment would have given the Hong Kong-based carrier control of PAL.

PAL has also discussed the possibility of an investment by Northwest. The status of those discussions could not be ascertained at press time.

>> More <<
Philippine Airlines online

Site Suggestion
=====================

This being a travel site, we usually point you in the direction of sites which provide travel-related products or services. This week's suggestion is a bit of a departure.

What Despair.com dispenses is humor, of a sort that will appeal especially to those of us in corporate jobs. What the site sells (although you needn't buy anything to appreciate the humor) is motivational posters with the look and feel of those found in the corporate workplace with bold headlines proclaiming "Vision," "Leadership" or the like. But Despair.com's posters and other materials are de-motivational.

As an example, here's the description of their 1999 calendar:

"Monthly Inspirations for Pessimists, Underachievers and the Chronically Unsuccessful"

Experience the last year of the Millennium the way nature intended, in mounting apprehension of the coming collapse of modern society. Our 16 month 1999 Calendar (12" x 11") not only includes all of our concepts, but also recounts pessimistic days in human history, such as:

October 8, 1871 - A bovine arsonist starts the Chicago fire.
April 15, 1912 - Titanic sinks, and your taxes are due.
August 24, 1995 - Windows 95 officially debuts.
October 16, 1976 - Rick Dees' "Disco Duck" hits #1 in the charts.
December 31, 1999 - At midnight, The Millennium Bug hits.

Truly the perfect gift for the man or woman who has everything, but still isn't very happy about it.

>> More <<
Despair.com