This Week's Travel Industry Newsbites

Delta's announcement last week that its 1st-quarter loss had soared to a jaw-dropping $1.1 billion has stoked renewed speculation that the airline's deteriorating finances will force it into filing for bankruptcy protection.

Long-time industry analyst Ray Neidl of Calyon Securities was among those predicting that Delta would join United and US Airways in Chapter 11, weighing in as follows: "In our opinion Delta appears to be the most likely candidate for a bankruptcy filing this year based on its liquidity position."

The doom and gloom have taken a toll on Delta's share price, which has lost more than 90% of its value since 2001. Delta's market value (share price x shares outstanding) has nosedived to about $500 million. Southwest's, by contrast, is $11.5 billion.

In its quest to unload 4 underfunded pension plans, United has reached a tentative agreement with the Pension Benefit Guaranty Corporation (PBGC) according to which the PBGC would assume responsibility for the plans in exchange for $1.5 billion in United securities.

The deal is subject to review and approval by the bankruptcy court and is sure to be resisted by United's unions.

FrequentFlier Forum Topics

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

In the "Airline Programs" Forum, woconell is frustrated with the lack of available award seats: "I have 250,000 miles with USAIR. I feel that these miles are dead miles. Hard to find a 25,000 award ticket, they say you must book 11 months in advance and come to find out they only have maybe 1 seat per flight. But if I want to cash in 50,000 all of a sudden they have a seat but not first class."

Also in the "Airline Programs" Forum, litefoot is looking for award-redemption advice as well: "I currently have an award reservation with an open jaw (to TKY) due to no award seats being available (Continental partner NWA / W class, I am told). Anyone have background on timing / strategy in checking seat openings? Currently I am calling daily."

And in the "Credit Card Programs" Forum, Gary Steiger has updated info on the currency-conversion fees charged by MBNA on its Amtrak Mastercard and AAA Visa cards: "The bad news: The Amtrak card will indeed incur the 3% currency conversion fee. But the good news is that the AAA card will not incur that fee."

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

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AAdvantage Permits Upgrade Transfers

Through May 31, AAdvantage members who have unused 500-mile upgrades in their accounts may transfer those upgrades to other AAdvantage members, provided the recipients currently hold AAdvantage elite status. Each transfer costs $15.

Transfers must be made by phoning AAdvantage Customer Service at 1-800-421-0600 and providing the account number of the recipient.

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Redeem Diners Club Points for More BA Miles

Between May 1 and Aug. 31, Diners Club Rewards members will receive a 50% bonus when redeeming their points for miles in the British Airways Executive Club program.

So with the bonus, for example, 17,500 Diners points will be worth 26,250 Executive Club miles, enough for a free domestic award.

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Barbados Stays Earn Hilton HHonors Bonus

Qualifying stays at the new Hilton Barbados between May 23 and Aug. 31 will reward Hilton HHonors members with either quadruple HHonors base points or quadruple airline miles. Rates start at $260 per night.

Request promotion code QJ for the bonus points or promotion code QL for the bonus airline miles.

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InterContinental Expands Network of Priority Club Awards

Beginning in July, Priority Club Rewards members in the U.S. will be able to redeem their points for debit cards which in turn can be used to pay for stays at any hotel which accepts American Express cards. (Amex issues the debit card, which explains the condition.)

In effect, the so-called "Any Hotel, Anywhere" cards expand the program's award network to include 500,000 hotels, a quantum leap beyond the InterCon portfolio of 3,500 properties. Since there are no blackout dates limiting stays paid for with the card, the awards are also less restrictive.

Predictably, free nights outside the InterCon network are somwhat more expensive than nights at InterCon's own properties.

There are 5 tiers: 29,000 points are redeemable for a $100 card; 34,000 points for a $125 card; 39,000 for $150; 49,000 for $200; and 59,000 gets you a $250 card. Award stays at InterCon's own brands, ranging from Holiday Inn to InterContinental, are generally priced between 15,000 and 30,000 points per night, so the debit card option roughly doubles the price of awards.

According to the Priority Club website: "By rewarding our members with this freedom, we believe we'll gain even greater loyalty and more repeat business from them." They may indeed do just that.

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Loews Offers Free 4th Night

Through Jan. 31, 2006, guests paying eligible rates at participating Loews hotels will receive the 4th night free.

Reservations may be made online, using promo code 4FREE, or by phone at 1-866-768-6658.

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Northwest Offers Bonus for El Paso Flights

Through June 30, WorldPerks members will earn 1,000 bonus miles when flying roundtrip on Northwest's new service between Minneapolis/St. Paul and El Paso, TX.

Registration is required.

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Earn Bonus United Miles for Chrysler Purchases

Mileage Plus members who purchase an eligible 2005 Chrysler car by Aug. 1 will receive 70,000 bonus miles.

Registration is required.

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US Air Adds RealEstate.com to Partner Roster

Dividend Miles members may now earn miles when buying, selling or financing a home through RealEstate.com.

Earn 1,250 miles per $10,000 financed on mortgages, refinancing or home equity loans or lines of credit, and 3,000 miles per $10,000 of a home's purchase and/or selling price when using RealEstate.com realtors.

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Deal Alert from SmarterTravel.com

1) Europe Fares on Icelandair from $414

If you're planning a shoulder-season trip to Europe, consider Icelandair's spring sale. Prices start at $414 roundtrip, and destinations include Amsterdam, London, and Paris.

Departures are valid through June 15. Travel must be completed by July 15. Book tickets by Apr. 30. Fares require a Saturday-night stay, and the maximum stay is 30 days.

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2) Sale Fares on Independence Air from $29 Each Way

Fly through August with Independence Air's domestic sale, starting at $29 1-way. Prices are the lowest available on many routes, and destinations include Independence Air's new West Coast routes, as well as cities in the Northeast, Florida, and Midwest.

Travel at the lowest prices is valid on Tuesdays and Wednesdays through Aug. 31. Book tickets at least 7 days in advance, and by Apr. 28. Service to/from Los Angeles begins on May 1.

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Win a Trip for 2 to Scotland

Enter the VisitScotland sweepstakes by May 22 for a chance to win a choice of 2 trips to Scotland, including air and hotel accommodations.

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

Feedback from the Frontlines of Travel

[Following is a note sent to Southwest's Colleen Barrett and copied to the FrequentFlier Crier.]

"Last May I wrote that you wouldn't be seeing me on board a Southwest flight anytime soon because of your abandonment of the double flight credits. And to be honest, SWA has seen very little of me over the past year! Earlier this week, I booked a trip for travel next week from BWI to PHX on Southwest. Then just today, I received the latest newsletter (#344) from www.FrequentFlier.com which announced that 'Southwest Deep-Sixes Booking Bonus.'

"All of this leaves me wondering why I decided to come back to SWA this Spring after *happily* flying with United Airlines over the past year. As you can see from my United account summary which is enclosed, I have flown at least 12 roundtrip flights which has earned me two free roundtrip tickets to Hawaii. I could NEVER do that with Southwest! Think about all that LOST business for Southwest!

"All of this ONCE AGAIN leaves me with a really bad taste in my mouth where Southwest Airlines is concerned. As I mentioned in my letter of May 2004, I was loyal enough back in 2001 to earn 100 credits good for a SWA Companion Pass. I don't see that happening anytime soon in the next decade with SWA. Read it and weep but you are _alienating_ good loyal customers like me who put the bread and butter on your table! Maybe you feel like you can "thumb your noses" at your customers (including former loyal ones like me). But corporate attitudes like this will come back and BITE Southwest if you stay your current course! There are a lot of old sayings that come to mind like "it costs 7-10x as much to find a new customer as to keep an old one!" It seems to me that SWA would like to dispose of it's old customers! What a pitiful postscript to write about an airline that changed the industry for the better. and now for the WORSE!

"Disgusted in Baltimore." (Dr. Mark K.)

"A dichotomy. Delta's frequent business flyer attitude has continued to get worse but at the same time they are doing something right because the gate agents and flight attendants have a "new spirit". Actually, not new. It reminds me of the attitude I experienced on Delta when the employees banded together 20 years ago to purchase the "Spirit of Delta" via 20 year payroll deductions to help Delta out of its financial troubles. While that would never fly today - and maybe my last 10 flights have been an anomaly - I'm seeing a rekindled spirit of smiling customer service among Delta employees even as they are losing their homes due to the cut backs they've suffered. The hard working flight attendants and gate agents are all scared to death that the next blow will wipe them out but yet they are smiling and being nicer than I've experienced in more than 10 years.

"As I said, a dichotomy." (Chris, a Delta Million Miler)

"Hi. My wife and I are members of Northwest Frequent Fly program.

"We thought we had 90,000 some miles (each of us). When we tried to redeemed for a free trip to HI, we found that they had wiped out about 50,000 for each of us. Leaving us with about 47,000 frequent miles each.

"They claimed that they had issued free tickets at some time in the past (WE NEVER RECEIVED ANY OF THESE FREE TICKETS). Even if we desire to abide by these rules, we cannot interchange miles (that it is to use both our miles to purchase a first class ticket).

"We believe that we are in the presence of an elaborated scam to deprive us from our frequent miles." (W.J.A.)

"Apparently there is a new terrorist weapon in the air according to TSA screeners at LAX. My daughter was stopped going through security last week with a juice blender! Watch out Delta 2280, she's packing an Osterizer!" (Jon C. - Santa Monica, CA)

Until next week...