Issue #72  --  December 16, 1999

<< U P F R O N T >>

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Customers First
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My mother's favorite admonition (after "Clean your plate.. children are starving in India.") was: If you don't have anything nice to say, just don't say anything.

As the airlines bombard the media with announcements of their various Customers First promises, I kept thinking to myself that the best advice I could give them would be: "Just don't say anything." It's not that the airlines aren't saying nice things. It's that the promises are so vacuous as to be insulting. And nobody like to be insulted.

Customers First (or titles to that effect, varying by airline) is the airlines' collective promise to treat customers fairly and well. It was a promise made under extreme duress. At the time, Congress was contemplating several versions of a Passenger Bill of Rights--legislation prompted by a groundswell of outrage and complaints about airline service lapses. In exchange for a reprieve from a federally mandated Passenger Bill of Rights, the airlines promised to publicly commit to addressing their shortcomings, and to begin delivering on those promises beginning December 15. Hence the glut of Customers First launches this week.

I'll leave the promises regarding pricing and customer service for comment by those with specific expertise in those areas. Here's what US Airways has to say about frequent flyer programs in its Customer Commitment statement. Their commitment:

"To provide accurate and current information regarding our Dividend Miles program to our customers through our web site (usairways.com) and through written materials. We will also produce an annual report of the number of seats that have been redeemed through this program each year. Under the US Airways Dividend Miles program, every seat on every flight is available at a designated redemption level published in our Dividend Miles materials. On most flights, there are limited numbers of Dividend Miles seats available at discounted redemption rates, and our trained reservation agents can help you locate these seats. Customers may book all Dividend Miles rewards seats through our reservation agents. We are currently working to enable our customers to reserve such seats through our web site (usairways.com) as well."

Now, read the above again, keeping in mind the central issue surrounding frequent flyer programs--lack of award seats, at reasonable mileage levels, on desirable routes. Does the promise address the problem? Hardly. At best, it simply skirts the issue. At worst, it cynically obfuscates it.

The Department of Transportation's (DOT) Office of Inspector General will issue an interim report on the plans next June, and a final report by December 31, 2000. If the DOT follows my mother's advice, their silence is likely to be deafening.

<< M I L E S >>

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American Links Program with 4 European Carriers
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American Airlines and 4 members of the Qualiflyer group of airlines (Swissair, Sabena, Crossair and Turkish Airlines) have started frequent flyer program cooperation.

Under the arrangement, AAdvantage members earn mileage credit when traveling on non-transatlantic flights operated by Sabena, Swissair, Crossair and Turkish Airlines (excluding Turkish flights within Turkey). AAdvantage members may also earn mileage credit when traveling on one of Swissair's or Sabena's transatlantic flights if it is a codeshare flight and the passenger is booked under American's AA code and flight number. AAdvantage members may redeem travel awards on all flights operated by Sabena, Swissair, Crossair and Turkish Airlines.

Qualiflyer members may earn mileage credit and redeem travel awards on non-transatlantic flights operated by American and its regional affiliates American Eagle and Business Express. Also, Qualiflyer members may earn mileage credit on American's transatlantic flights if it is a codeshare flight and the passenger is booked under the Swissair or Sabena code and flight number.

>> More <<
American

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Continental and KLM Get Together
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Continental and KLM this week announced plans for a joint marketing initiative which is to include through check-in of passengers and baggage, reciprocal frequent flyer program participation, reciprocal airport lounge access, and, subject to government approval, codesharing on selected routes.

When the agreement is implemented in the second quarter of 2000, members of Continental's frequent flyer program, OnePass, and KLM's frequent flyer program, Flying Dutchman, will be able to earn and redeem miles and/or points anywhere on either airline's route network.

The tie-up is another step toward building a strategic global alliance between Continental, KLM Royal Dutch Airlines, Northwest Airlines and Alitalia.

>> More <<
o Continental
o KLM

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Bid Your Miles to Win a BMW
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Members of United's Mileage Plus can use their miles to bid on a new 2000 BMW Z3.

Bidding will begin at 50,000 miles. If yours is the highest bid, the car goes to you. And the winner's miles are donated to Doctors Without Borders, recipient of the 1999 Nobel Peace Prize. (Nicely done on United's part, making this a win-win situation for all parties.)

You have until December 31, 1999, to post your bid. United will notify the winner directly in January.

(Important Note. The miles you bid will be committed during the auction period, and may not be redeemed for award travel or upgrades from the date of your bid until winners are notified on or before January 15, 2000.)

>> More <<
Complete information about the auction can be found on United's website at http://www.mileageplus.com/bmw/i.asp?MT=P9NP2

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AAdvantage Miles for Boston Coach
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AAdvantage members can earn 250 miles for each BostonCoach sedan transfer. BostonCoach service is available in 450 cities in the United States, Canada and Europe. To receive credit, members should reference account number 7817 when placing a BostonCoach reservation and provide their AAdvantage number.

>> More <<
o American
o BostonCoach

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Win AAdvantage Miles
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American's 1,000,000-mile sweepstakes ended on December 15. Not to worry though... there's already another opportunity to win AAdvantage miles.

Marriott Vacation Club International and Leading Golf Courses of America are giving away 1,000,000 AAdvantage miles.
  
Between now and April 30, 2000, they will give away a total of 1,000,000 AAdvantage bonus miles during the 1,000,000 AAdvantage Miles Sweepstakes Giveaway. You could be one of the 50 First Prize winners who receive 10,000 AAdvantage bonus miles each. Or you could be one of five lucky Grand Prize winners who receive 100,000 AAdvantage bonus miles each.

There's no purchase necessary to participate.

>> More <<
To enter, you must complete an online entry form and answer several questions about your travel preferences here.

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Starwood Joins ClickRewards Network
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Beginning in February 2000, ClickRewards members who join Starwood Preferred Guest, Starwood's frequency program, will be able to redeem ClickMiles for StarPoints.

ClickRewards members can use their StarPoints for free stays at Starwood's collection of hotels and resorts around the world, including Westin Hotels and Resorts, Sheraton Hotels and Resorts, Four Points Hotels by Sheraton, St. Regis, The Luxury Collection and W Hotels.

>> More <<
o ClickRewards
o Starwood

<< I N D U S T R Y N E W S >>

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Free Holiday Films on American
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In the spirit of the season, American Airlines has a holiday present for those flying on movie flights between Dec. 19 and Dec. 26.

During that period, American will be waiving the normal $5 charge for movie headsets in the main cabin of movie flights so coach customers can watch feature-length films for free.

During the period, American will feature films with a holiday theme on its main screens, including I'll Be Home For Christmas, Miracle on 34th Street, Jack Frost, The Santa Claus, and National Lampoon's Christmas Vacation.

Nice gesture on American's part.

>> More <<
American

<< T R A V E L O N L I N E >>

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Visits to Travel Sites Surge for Thanksgiving Period
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With 3.2 million unique visitors in November, priceline.com emerged as the top site for U.S. Internet users shopping for information on Thanksgiving holiday air travel, according to a study released this week by PC Data Online.

This translated into a 71 percent increase over the previous month's figures. Travelocity.com and expedia.com followed with 2.8 million unique visitors (8 percent increase) and 2.1 million (6 percent increase) respectively.

Of the airline-sponsored sites, iflyswa.com (Southwest) emerged on top with 1.5 million users, which represented a 26 percent increase over the previous month. Aa.com (American Airlines) came in second with 1.1 million unique users and delta-airlines.com third with 979,000 unique users.

The study also revealed that most home Internet users reserved their Holiday flights through direct channels as opposed to travel agents. Thirty- two percent booked flights online, while 31 percent booked flights by telephone directly through an airline. Twenty percent booked through a travel agent.

"Thanksgiving air ticket sales reinforced that direct booking -- whether online or by telephone direct to an airline -- is eliminating the middleman in air transportation,'' said Jeff Moulton, Internet analyst for PC Data Online. ``Air travelers want information, but more importantly, want to know the shortest, easiest and least expensive path to book their flights."

He added, "Southwest Airlines has traditionally been a low cost airline. It fared well in the study because its direct channel philosophy transfers easily to the Internet, enabling it to expand its consumer base and continue to keep its costs down."

Age likewise emerged as a factor in whether Internet users book a flight online. Sixty-eight percent of Internet users between the ages of 18 and 34 booked their flights online or by telephone directly to an airline compared with 56 percent between the ages of 35 and 65.

Finally, Internet users seemed genuinely pleased with their travel plans, with 92 percent saying they had no problems with their reservation.

PC Data Online, a leading Internet research firm specializing in web commerce measurement and analysis, surveyed 4,101 home-based Internet users last month about their preferences and satisfaction with shopping for flights during the Thanksgiving weekend. The sample was weighted by age and gender to represent the U.S. Internet population. It has a margin of error of +/- 1.56 percent.

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PC Data Online

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

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Things to Know Before You Go
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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."

>> Say Goodbye to Your Airline Ticket

Anyone who has made a hotel reservation should be familiar with the airlines' new electronic or "ticketless" option. You call the airline or your travel agent, order your ticket, provide your credit card number for payment, and get a confirmation number in return. When you get to the airport, you provide the confirmation number and/or personal identification, wait in line for your boarding pass, and get on the plane.

Ticketless travel is a good thing because there is no longer a need to have to pick up a paper ticket from a city ticket office, travel agent, or airport check-in counter. You can simply call in your reservation and appear at the airport gate with your ID. You don't need a courier to deliver your ticket (or lose it), forcing you to pay extra for a "prepaid" ticket or a lost ticket (around $70).

The downside of ticketless travel? There's one more line to stand in to get your boarding pass. And there's less of a permanent record of the trip in order to back up claims for unposted frequent flier miles. Also, there are potential problems during unplanned events--like flight cancellations--when you must be booked on another carrier.

Chris McGinnis
Travel Skills Group
PO Box 52927
Atlanta, GA 30355
http://www.travelskills.com

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

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Shopping for Miles
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[More info on the Delta/United shopping programs mentioned in last week's Crier, including enrollment fees. Thanks, Ben.]

Go to http://momentum-member.com/. It will redirect the page, then you can see the actual link of Delta and United into miles-for-shopping programs. And, it DID take a long time for Shop at Home to show up. Enroll will cost $59.95 for 250 miles and additional 250 miles when first purchase. 90 days free membership, but it will charge the credit card first. :(

 - Ben

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Wither Canada?
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Tim:

How come there has been no comment or info about Air Canada take over of Canadian Airlines? In fact you seldom comment on any Canadian stories. There is a new Regional air line in Canada called Westjet, quite a story about its success.

 - William

[Guilty, but with extenuating circumstances. The Canadian Air saga has involved so many twists and turns over the past few months that I thought it prudent to wait for a final resolution before filing a report.

At this point, Canadian has agreed to be acquired by Air Canada, and Canadian shareholders have agreed to sell more than 50% of the carrier's outstanding stock. Furthermore, a letter of intent between Air Canada and American Airlines (which owns 25% of Canadian, and had been an earlier contender to purchase Canadian) has been signed by both parties. The letter of intent calls for American and Canadian to continue their current codeshare and frequent flyer program relationship for the next 10 years. So members of AAdvantage and Canadian Plus would be able to continue earning and redeeming for flights on Canadian and American.

Still, the Canadian government must endorse the deal--which would effectively create a near-monopoly in Canadian air service--before it can be effected.

Regarding WestJet, for those who aren't familiar with them, it's a growing Calgary-based carrier currently serving 12 cities: Victoria, Vancouver, Abbotsford/Fraser Valley, Prince George, Kelowna, Calgary, Edmonton, Grande Prairie, Saskatoon, Regina, Winnipeg and Thunder Bay. They recently announced plans to add additional service to unnamed cities in eastern Canada.]

<< B A C K O F T H E B U S >>

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Holiday Travel Forecast, Tips
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According to the Air Transport Association (ATA)--trade association for the country's airlines--34.2 million airline passengers are expected to travel in the two and one-half weeks surrounding the holidays.

December 17 through December 20 will be the most heavily traveled days, with daily load factors as high as 83 percent. The best days to travel are expected to be December 25, 31 and January 1. The busiest travel day after the holidays will be Tuesday, January 4, with planes expected to be about 86 percent full and an estimated 2 million passengers in the air.

This year, an additional 700,000 passengers are anticipated over the same period last year. Christmas Day and New Year's Day are traditionally light travel days, with 1.46 million passengers expected on Christmas Day and 1.3 million on New Year's Day. This compares with 1.4 million on December 25, 1998 and 1.6 million on January 1, 1999.

Here are the ATA's tips for traveling during this holiday season:

-- Passengers should travel with valid photo identification and keep the I.D. with them at all times.

-- Passengers should not accept any item from a stranger, or carry any package of which they do not know the contents.

-- Luggage should not be left unattended or under the guard of strangers.

-- Passengers are reminded to keep carry-on baggage to a minimum. Heavy passenger loads may limit overhead bin and under-seat storage capacity. Check with your airline reservations department for specific requirements.

-- Ship gifts ahead of time to reduce your baggage while traveling. If you must carry gifts, do not wrap them until after your flight, as they may be subject to search.

-- Make sure that all checked and carry-on bags are properly tagged, both inside and outside, with the ticketed passenger's name.

-- Consider using public transportation to the airport, to ease traffic and parking congestion. When driving to the airport, leave early to ensure enough time to find parking, check in luggage and go through the increased security screening.

-- Pay close attention to in-flight announcements, with regard to restrictions on the use of portable electronic devices, such as personal computers and C.D. players. Cellular telephone use is prohibited during all phases of flight.

-- Prepare yourself for the effects of flight by getting a good night's sleep, eating a light meal before your trip and drinking plenty of water and fruit juices, before and during a long flight, to prevent dehydration.

-- Do not pack hazardous materials, i.e. matches, lighters or flammable liquids in luggage, as these items may ignite or leak, due to variations in temperature and air pressure during the flight.

Until next week...