The Bankruptcy Beat

This time next week United will be in territory it hasn't seen for more than three years: out from under the protection of Chapter 11 bankruptcy.

On Friday, the judge overseeing United's bankruptcy approved the airline's plan to emerge from Chapter 11 on Feb. 1.

While in bankruptcy, United cut $7 billion in annual costs, slashed 25,000 jobs and offloaded its defined-benefit pensions. It also cut more than 100 aircraft from its fleet, reduced U.S. flights and expanded internationally.

As we've reported, United's plan to regain profitability is based on the assumption that oil prices will average $50 a barrel. And current prices are closer to $70 a barrel.

All doubts about UA's strategy aside -- and whatever the merits of bailing out companies which perhaps should have been left to live or die without artificial props -- our congrats to United on the biggest day in the company's history.

If in the end United can now deliver a solid product at competitive prices, maybe it all will have been worthwhile.

In an interview with the Atlanta Journal-Constitution, Delta CEO Gerald Grinstein had the following to say about the airline's exit from bankruptcy: "My aspiration would be to come out in the spring or summer of '07."

Grinstein also denied that Delta and Northwest had been in merger discussions.

On a lighter note, we received the following from Crier reader Mark H.: "Thought you might enjoy this initial descent message I heard recently on Northwest:

Ladies and gentlemen we've begun our initial descent into Las Vegas' McCarran Intl Airport. We're about 85 miles out. We realize you have a choice of which bankrupt airlines to fly and we'd like to thank you for choosing Northwest.

"Needless to say, it brought the house down."

How Diners Club Lost Its Mileage Mojo

In last week's Crier, the link to the Diners Club story was incorrect. Our apologies.

The correct link is here.

For another perspective on Diners' current travails, see Michael G.'s comments in "Rants & Raves" below.

Tips from "Mileage Pro"

As promised, we've summarized some of the best tips from the just published book, "Mileage Pro - The Insider's Guide to Frequent Flyer Programs," by Tim Winship and Randy Petersen, and posted on the website.

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FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, shortysnh was planning to use miles for a first-class award, and expected that, since it was a cross-country flight, the meal would be complimentary. Wrong! "I just queried NWA for a First Class award seat, for SEA-MCO (Seattle-Orlando). All they have available is RuleBuster seats (90K vs. 45K), and 'food for purchase.' In First Class...? Are things really that bad, Mr. Whomever-Runs-Northwest?"

Also in the "Airline Programs" Forum, NCFlyer wants to change preferred carriers: "I'm a Gold-level Frequent Flyer on US Air. I've recently flown several flights that were operated by America West. Sadly, I have found that the future of US Air isn't very bright! As a result, I'd like to shop my Flyer status to another airline. You know... 'if you make me Gold in your program, I'll commit to fly your airline exclusively.' My problem is... which airline should I focus on? I usually fly out of either GSO or CLT, so I'm thinking either United or Delta."

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

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American Bonuses for New Love Field Flights

Between Mar. 2 and May 26, AAdvantage members can earn up to 60,000 bonus miles on American's new flights from Dallas Love Field (and DFW) to Kansas City, St. Louis, Austin and San Antonio.

Fly three roundtrips to earn 30,000 bonus miles; six roundtrips nets 60,000 bonus miles.

While DFW flights are included in the promo, the real focus is Love Field, where American will be going head-to-head with Southwest in what promises to be a cat fight of epic proportions. (See below for SWA's triple points offer for flights between Love and Missouri.)

Registration is required.

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TACA to Leave AAdvantage Program

AAdvantage members have limited time to earn and redeem miles for flights on TACA.

June 30, 2006 is the last day to earn miles for TACA flights, including flights operated by LACSA and AVIATECA, and to book award flights on TACA. And all award travel on TACA must be completed by June 30, 2007.

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Continental Bonus for London Trips

OnePass members will earn 10,000 bonus miles for London travel packages from Continental Vacations of five or more nights booked by Feb. 17 for travel between Feb. 1 and Feb. 27.

Enter promotion code COVLONDON when making reservations.

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Delta SkyMiles Elite Exceptions

The following is reprinted (with permission) from THE TICKET, the Atlanta-focused newsletter published by Chris McGinnis and considered a must-read by many Delta customers:

Didn't get the Medallion status you felt you deserved for 2006? Delta tells THE TICKET that there will be three ways to be granted a bump up in elite status in 2006.

1. IF YOU ARE CLOSE: Those who have been Medallions for several years and are very close to reaching the threshold for a higher tier will bump up to the next level. For example, those having something like 49,750 miles and having been Medallion for a few years, are automatically bumped to Gold Medallion.

2. IF YOU SPENT A LOT: Those whose revenue performance (both Delta and partner revenue) exceeds the average revenue of those in a higher tier will get bumped up. For example, a Silver Medallion who spent $15,000 with Delta last year might exceed what the average Gold Medallion spent, and thus will automatically get bumped to Gold Medallion.

3. IF YOU ASK: Customers who write and request an upgrade in status will be handled on a case-by-case basis, with historical revenue performance, mileage earned, geographic location and general customer rationale all being included in the decision making process.

While the above pertains specifically to Delta, it's a safe bet that Delta's competitors are, by choice or by competitive necessity, doing the same.

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Hawaiian Air Tunes Up HawaiianMiles

Normally low-key Hawaiian Airlines has ratcheted up the loyalty heat with two new enhancements to its HawaiianMiles program.

First, Hawaiian has added a third category of award seat availability, in between the traditional restricted and unrestricted buckets. With the new tier, HawaiianMiles members can choose among SuperSaver, Saver and AnyTime awards. One-way award flights across the Pacific, for example, are priced at 17,500 miles, 25,000 miles and 35,000 miles respectively.

Even better, program members may now book one-way award flights. That means award types and classes of service may be combined in a single roundtrip itinerary (an AnyTime coach seat on the outbound and a Saver first-class seat on the return, for example). Or, members may simply book a one-way flight without having to redeem the same number of miles required for a roundtrip.

It remains to be seen whether the expanded categories translate into more award seats for a lower average mileage redemption. The one-way awards are an instant winner, however. Raising the question: If Hawaiian can do it, why can't American, Continental, Delta, Northwest, US Air and United?

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Earn Triple AAdvantage Miles at Loews Santa Monica

Through Apr. 15, AAdvantage members will earn triple miles -- 1,500 miles per stay -- for every stay of two or more nights at the Loews Santa Monica Beach Hotel.

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Midwest Program Is 20 Years Old

This year will mark the 25th anniversary of frequent flyer programs, launched by American in May 1981 and followed shortly thereafter by United.

Another milestone: Jan. 5, 2006, was the 20th anniversary of Midwest Miles (although there's been a name change since its inception).

The program launched in 1986 with just one program partner, National Car Rental. According to Midwest, only 25,000 members enrolled in that first year and it took seven months for the first member to earn an award ticket. Midwest Miles now has two million members and more than 35 partners in the program.

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Award Restrictions on Southwest's Radar

Feb. 10 will be a sad day in the history of mileage programs.

On that day Rapid Rewards members will lose what is arguably the single best feature of Southwest's program: unrestricted access to award seats.

"Any Awards issued prior to February 10, 2006 are unrestricted in their use. In other words, the number of seats available for Award use on any flight on nonblackout dates will be limited only by the capacity of the aircraft. Any Awards issued on or after February 10, 2006 will be subject to capacity controls, meaning seats for travel on those Awards will be limited and not available on all flights."

Southwest softened the blow somewhat by extending the life of Rapid Rewards credits from one year to two.

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Southwest Triples Points to MO

Through Apr. 30, Southwest Rapid Rewards members will earn triple credits for flights between Dallas (Love) and Kansas City or St. Louis.

To be eligible for the bonus, bookings must be made on the southwest.com or swabiz.com websites.

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Deal Alert from SmarterTravel.com

1) U.S. and Canada Fares on Alaska from $49 Each Way

Alaska's new U.S. and Canada fares start at $49 one-way for travel through early June. Destinations include Los Angeles, San Diego, Calgary, and Vancouver.

Travel is valid through June 9. Book tickets online at least 14 days in advance, and by Feb. 2.

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2) Canada Sale Fares on American from $226

American's Canada sale fares start at $226 roundtrip, and are valid for travel through mid-April. Destinations include Montreal, Ottawa, and Toronto.

Travel is valid daily through Apr. 12. Book tickets at least 14 days in advance. American has not listed a booking deadline.

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Win a Free ATA Flight to Hawaii

ATA is giving away one free ticket from Phoenix, Las Vegas, San Francisco, Oakland, Los Angeles, or Ontario, CA to Hawaii every hour between Jan. 23 and Jan. 31. To enter, you must be a member of the Travel Awards program and register your membership number on ATA's website.

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[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]

Feedback from the Frontlines of Travel

"You heard it here first... Regarding Delta ... And on the QT ... Here's some forthcoming changes you can expect:

"1. Song is no more, but not the concept ... Delta needed all the Song planes so it can designate its widebodies to international travel ... Delta is going to widely expand its international travel and then bring back the Song concept for 100 percent of its domestic routes.

"2. Delta is going to eliminate its hierarchy of flight attendants ... Based on passenger load per plane will determine how many flight attendants each flight will have ... Each of the attendants will be of the same rank and file ... No senior flight attendants, etc. All flight attendants are to be flown into Atlanta in the next 60 days for a large meeting where they'll all be told of the new plans for Delta.

"3. Delta will then roll out the new uniforms for its flight staff (these were in the news some time back, but will be rolled out with the 'new' Delta)." [Bob R.]

"I believe the writer of the [Diners Club] story missed the single major reasons why Diners Club cardholders, including myself, dropped the plastic from our pockets. The most unique feature of the card, not found anywhere else in the banking industry, was the 60 day billing cycle. This permitted holders to pay for travel expenses after the reports have been filed and checks deposited. Once the MasterCard emblem showed up on the scene, the 60 billing cycle went the way of dodo bird."

"According to conversations with friends and associates that were once cardholders, this is the single biggest reason for dropping it." [Michael G. - Ft. Lauderdale, FL]

"How do I check my TWA Aviators account to see if there are miles on this and to move them to AA?" [Conrad C.]

[FrequentFlier.com replies - The deadline to convert TWA miles to AA miles is long gone. You could call the AAdvantage service center to see if there's anything that can be done at this late date, but I suspect you're out of luck.]

"Recently my wife had to fly from PHL to RDU on US Air due to the passing of her mother. Before she made the reservation she had the presence of mind to check the web to see if bereavement fares were applicable and the US Air site indicated that they were. On making phone coinfirmation with US Air she was told that the bereavement fares did not apply to that particular route. Having no other choice under the circumstances she booked the flight and paid full fare.

"Upon her return home she wrote US Air customer service and received an answer to the effect that bereavement fares do not apply to that route.

"If an airline publishes on their website that they have such fares, it should be expected that they qualify on their site any such restrictions. Common sense and courtesy to the consumer should demand that." [John D. - Princeton, NJ]

"Interesting that Andrew S. [in last week's "Rants & Raves"] was able to get JetBlue to refund part of his ticket when fares were lower.

"Recently we bought Continental tickets to HKG and a few days later the price had gone down well over $100 each. I called Continental and was told that they discontinued their practice of refunding but we could cancel and rebook but it would cost us $150 fee EACH. I was impressed, though, that they said if we were ill they would waive the fee with a Doctor's letter, as last year after my husband's quadruple bypass Northwest still charged us each $100 fee to change a flight that was scheduled for right after his surgery.

"NWA said even with a doctor's letter they still charged the fee. At least Continental is more sympathetic there." [Marva - Tampa, FL]

"This is (at least) my fifth complaint letter to NWA in not so many weeks. My fourth complaint email received no response. I have no idea what to say, I'm so astonished at the poor customer service, not to mention the vandalism of my luggage.

"Hopefully, someone is interested in this. If NWA won't respond to my complaints, I feel at least they should bare the tarnished image that they have earned.

"NWA, I would welcome any response. As I would have any number of weeks ago." [Erin T.]

Until next week...