U P F R O N T
More Bankruptcy Rumblings
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The upshot of last week's "Up Front" column was that US Airways was in trouble. Again. And that a Chapter 11 bankruptcy filing could be in its future. As it was in its recent past.
Quick update: today's Wall Street Journal reports that US Airways' pilots union has backed off from its militant "no more concessions" stance and will meet with management to discuss further cost reductions.
As the airlines' 4th-quarter financial reports began trickling in last week, there was an outbreak of concern for yet another legacy carrier: Delta.
Delta reported a $327 million loss for the quarter and $773 million loss for the full year. Bad news. Discussing the results, Delta chief Gerald Grinstein predicted that the 1st quarter of 2004 would be bleak as well. More bad news. But most disturbing of all were the comments from a leading Wall Street airline analyst, Credit Suisse First Boston's James Higgins, who interpreted Grinstein's remarks as a signal that Delta was seriously considering its own bankruptcy filing.
Bankruptcy or not, the airlines' woes spell trouble for the traveling public.
Implicitly acknowledging that it had lost sight of customer needs, Delta's former chief, Leo Mullin, last year promised a return to customer focus after a prolonged period of "laser-like attention to cash flow."
Mullin is gone (he retired on Jan. 1). But the days of desperate nickel and dimeing may be back.
<< O N S I T E >>
FrequentFlier Forum Topics
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As always, there's plenty of activity on the FrequentFlier Forum.
Marathon Man has the details of United's 2004 miles-for-dining bonus. Ronald has links to Continental's 1,000-mile offer for signing up to receive e-mail announcements. Danny is looking for a DSL provider which awards American or Northwest miles. And much more...
Do you have questions, answers? Post them to the Forum!
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<< M I L E S & P O I N T S >>
New Aeroplan Affinity Cards from Amex
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Aeroplan members now have an alternative to the affinity credit cards from CIBC and MBNA, the new AeroplanPlus cards from American Express.
There are 3 versions of the AeroplanPlus charge card -- regular, Gold and Platinum -- with annual fees ranging from $60 to $399. The Gold card earns 1.25 Aeroplan miles for every dollar spent over $10,000 annually. And the Platinum card earns 1.25 miles for every dollar spent up to $25,000, and 1.5 miles per dollar thereafter.
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AAdvantage Bonus for AT&T Wireless
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Following the imposition on Nov. 24 of rules allowing wireless customers to keep their numbers when changing service providers, it was widely anticipated that the wireless companies would roll out aggressive promotions to steal customers from their competitors.
In fact, one of the very few such offers to surface so far is from AT&T, which is offering AAdvantage members 10,000 miles for activating new wireless plans priced at $59.99 and up, with a 2-year agreement, and 5,000 miles on plans priced between $29.99 and $59.98.
In addition to the sign-up bonus, members earn 1 mile for every dollar spent monthly on qualifying wireless usage.
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American Extends Hawaii Award Sale
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American has extended until the end of the year its sale on AAdvantage awards for travel between California and Hawaii.
Through Dec. 31, 2004, the PlanAAhead award for first/biz-class travel between California and Hawaii is discounted 15,000 miles, to 60,000 miles. And the unrestricted AAnytime version of that award is discounted 30,000 miles, to 120,000 miles.
Book awards online at http://www.aa.com or call AAdvantage Reservations at 1-800-882-8880.
Continental Offers Bonus for Midwest Flights
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Between Jan. 14 and Apr. 30, OnePass members will earn 1,000 bonus miles for qualifying roundtrip flights on Continental Connection, operated by CommutAir, to or from the following Midwest cities: Charleston, West Virginia; Cincinnati, Ohio; Corning/Elmira, New York; Erie, Pennsylvania; Ft. Wayne, Indiana; Pittsburgh, Pennsylvania; Scranton/Wilkes-Barre, Pennsylvania; South Bend, Indiana; Toledo, Ohio.
To qualify, tickets must be purchased in A, D, Y, H, K, N, B, V or U class of service.
Register using Promotion Code 54087.
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Delta Offers Bonus for SkyMiles Purchases
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Through Mar. 15, first-time buyers will earn 5,000 bonus miles when they purchase miles through Delta's SkyRewards mileage sales program.
Companies and organizations may purchase and award miles through the SkyRewards program in any amount more than 60,000 for $0.022 per mile, plus 7.5% Federal Excise Tax and a $75 1-time processing fee. Canadian residents are subject to an additional 7% GST.
To earn the 5,000 bonus miles, the buyer must enter SRBONUS in the promotion code field.
Offer does not apply to miles bought for personal use.
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Northwest Multiplies Miles for Multiple Hotel Stays
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Northwest's new Mileage Maximizer promotion rewards WorldPerks members with extra miles for multiple stays at WorldPerks hotels between Feb. 15 and May 15.
After registering for the bonus, members earn a 50% bonus for their 2nd qualifying stay, a 100% bonus for the 3rd stay, and a 200% bonus for the 4th and subsequent stays.
Register before the 1st hotel stay now through May 15, at http://www.nwa.com/offers/maximizer using promotion code 8483.
United Matches Free-Ticket Promo (Sort of)
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Proving once again that where 2 of the Big 3 go, so goes the 3rd, United has matched the buy-2/get-1-free offer initiated by American and initially matched by Delta. But in this case, it's less of a match than a flawed copy.
Mileage Plus members who fly 2 qualifying roundtrips between New York/Newark/Boston and selected cities in California from Jan. 20 through Apr. 15 will receive a free roundtrip economy-class ticket to anywhere United flies.
Qualifying roundtrips are flights between: New York and Los Angeles or San Francisco; Boston and Los Angeles or San Francisco; Newark and Los Angeles.
Award tickets are valid for travel between Apr. 16, 2004 and Apr. 15, 2005.
So far, United's offer is more or less identical to those of American and Delta. But United has added a restriction to its offer which will substantially limit eligibility: "Qualifying roundtrips cannot include a Saturday night stay." That rules out most discount coach tickets, limiting the offer to the very few (mostly business travelers) who purchase high-priced walk-up fares.
Register prior to travel at http://united.com/1for2 or by calling 1-800-447-6772, code 716 within the U.S.
US Air Bonus for Charged Tickets
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Dividend Miles members who sign up for a new Dividend Miles Visa Credit Card between Jan. 20 and June 30 will earn triple flight miles -- which count toward Preferred Status -- for US Airways flights charged to the new card and flown by June 30.
Also on offer during the promotion period: extra first-use bonus miles. Platinum cardholders earn 10,000 bonus miles, Gold cardholders earn 7,000 bonus miles and Classic cardholders earn 5,000 bonus miles after their first charge (versus 7,000/4,000/3,000 normally).
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<< S T E A L S & D E A L S >>
Deal Alert from SmarterLiving.com
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This week's hot deals from SmarterLiving.com...
Nationwide Sale, Including Transcon Under $200
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It's not too late to plan your winter and spring travel with Southwest, as the airline has extended its systemwide sale that offers short-haul trips starting at $78 roundtrip, and cross-country flights for less than $200.
The lowest prices are available for travel on Tuesdays, Wednesdays, and Saturdays, with higher fares for travel on other days. Travel is valid through June 11, and you have to book at least 14 days in advance, and by Thursday, Jan. 29.
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Sale Fares to Mexico from $299
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Warm up and save with Delta's sale fares to Guadalajara and Mexico City, Mexico, starting at $299 roundtrip. The airline's sale prices are for trips from cities all over the country, through Apr. 3. Book tickets online only, and by Monday, Feb. 2.
The sale fares aren't astounding for winter and spring travel, but it is possible to find good deals, depending on your departure city. Delta's sale fares were the lowest available on 3 of the 6 routes we checked, and other airlines have matched the sale fares on some routes. Other airlines beat Delta's prices on the other routes, however, offering savings of as much as $68.
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<< S W E E P S & F R E E B I E S >>
From Continental: Check In, Chill Out Sweepstakes
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The grand prize in Continental's Check In, Chill Out Sweepstakes is a trip for 2 to Maui, including biz-class air, 6 nights at the Westin Maui Hotel, and rental car. Other prizes: 1-year Presidents Club memberships and OnePass miles.
OnePass members are automatically entered when they check in on continental.com between Jan. 15 and Mar. 31. Mail-in entries are also accepted, with no purchase or check in required.
> More...
<< R E A D E R R A N T S & R A V E S >>
Feedback from the Frontlines of Travel
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"Big Crier fan here, Keep up the great work!
"Wanted to dash off a quickie note concerning JetBlue. Just returned from a roundtrip to Long Beach from NYC and can't say enough about their service. I typically fly AA or United to LAX (I'm elite with both their programs). But I was curious enough to forego the upgrade on my usual carriers and give JetBlue a try.
"I now see why the old line airlines are in such trouble. If I were buying my own tickets (instead of my company), I would never choose United over JetBlue. I'd fly American over JetBlue if the prices were the same, because American's seating is slightly more roomy. But if AA's price was higher, JetBlue would get my business.
"JetBlue isn't perfect. There's no first class. And their mileage program is a joke. But what you get for the money is pretty great."
- Patty
Until next week...
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