U P F R O N T
Oh (No), Canada
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For no particular reason, this week's "Up Front" section is north-of-the-border focused. Specifically, the focus is Air Canada.
Canada's dominant airline, and the world's 11th largest, filed for the Canadian version of bankruptcy protection last month. And this week, AC reported its preliminary unaudited operating financials for the 1st quarter of 2003: a loss of $255 million.
If the point needed emphasizing, the bankruptcy filing and losses are a reminder that even near-monopoly market dominance -- as AC enjoys in Canada -- is no guarantee of success, much less survival, in these travel-challenged times.
In desperate pursuit of the aforementioned survival, AC will begin charging CDN $25 to issue Aeroplan award tickets. As we opined when first reporting the new policy: "This is a bad precedent, which should be fought long and hard by Aeroplan members."
In fact, it is being fought by Aeroplan members, who have formed the Association of Canadian Frequent Flyers (ACFF), whose raison d'etre is as follows:
"ACFF is dedicated to building a better Aeroplan. We're worried that recent changes to the program will hurt all Aeroplan customers, and in turn, Air Canada. We don't want to see Canada's national airline continue the cutbacks."
Very much the same sentiment underlies the efforts of the SaveSkyMiles and Cockroach Club groups, whose charters are to roll back changes at Delta and US Airways respectively.
For more info on ACFF, or to contribute to their campaign fund, visit their website at http://www.acff.ca/.
And speaking of Aeroplan, it came to light earlier this week that no fewer than 5 banks have stepped up to bid against CIBC for the contract to issue credit cards which reward users with Aeroplan miles.
How badly does CIBC, which currently issues the Aerogold Visa, want to keep the Aeroplan link? Badly enough to bundle their offer with a $254 million cash advance to AC. And to agree to pay 24% more for Aeroplan miles. And to forego exclusivity, allowing AC to contract with a second card-issuer. I.e., they want it very, very, very badly.
And that points up the irony of the situation: while the core airline business -- transporting consumers from point A to point B -- is teetering on the brink of financial ruin, frequent flyer programs remain highly profitable.
M I L E S & P O I N T S
AirTran Doubles Miles for LAX Trips
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Members of AirTran's A-Plus Rewards program will earn double credits for Los Angeles flights. Coach trips earn 2 credits per flight, business-class flights earn 3.
Travel to and from Los Angeles must be purchased by June 15 and completed by Nov. 15 to earn double credits. Service to Los Angeles begins June 4.
> More...
Earn AWA Bonus for Earthlink Service
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Sign up for Earthlink Internet access -- dial-up, DSL, satellite or cable -- by June 30 to earn 10,000 America West FlightFund miles.
> More...
Continental Adds New Debit Card Option
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Continental OnePass members now have a choice of mileage-generating debit cards.
In addition to the 2 Chase banking cards (http://www.chase.com/continentaldebit), there's the new KeyMiles Debit Card.
There's a $30 annual fee, and users earn 1 mile for every $2 in purchases using the card.
As is always the case with debit cards, you'll have to open a checking account with Key in order to use the card.
> More...
Continental, Northwest Raise HI Award Levels
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Beginning June 4, members of Continental and Northwest's programs will pay more miles for Hawaii rewards.
The mileage requirements for OnePass first class/BusinessFirst award travel to Hawaii will increase from 60,000 to 75,000 miles for a Standard Reward and from 120,000 to 150,000 miles for an EasyPass Reward.
Northwest Airlines will raise the mileage requirements for first class travel to Hawaii to 75,000 WorldPerks miles for Standard first class awards and 150,000 miles for Rulebuster awards.
iDine Checks Into Hotel Stays
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iDine -- which operates the miles-for-dining portion of the programs of Alaska, America West, American, Continental, Delta, Northwest, United, US Airways -- has extended the concept to hotels.
The beauty of the iDine system is that, once a credit card is registered with the program, any charges made at participating restaurants are automatically tracked and the miles awarded. Customers need not show their frequent flyer cards or specially request the miles, and restaurant employees are unaware that diners are earning miles for their meals.
Henceforth, stays at participating hotels, mostly independent upscale properties without links to the major hotel chains' programs, will earn 5 airline miles for every $1 spent. The underlying procedure -- miles tracked via registered credit cards -- remains the same. So anyone participating in a program's dining-for-miles option is already registered to participate in the new hotel feature.
For more on iDine's dining and hotel programs, including a listing of hotels currently participating, visit http://www.idine.com/.
Northwest Bundles Bonus with Hawaii Packages
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WorldPerks members will earn 4,000 bonus miles for booking Hawaii vacation packages through Northwest's tour division, WorldVacations.
Travel must begin before May 31, and you must register for the bonus prior to travel and before May 15.
For more information, see http://www.nwa.com/offers/wvhawaii2003/.
From VR: Pet Miles
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The battle for travelers' hearts and minds is now being fought on the Fido front.
Just 2 weeks ago, we reported on Continental's PetSafe program, which rewards pet owners with miles for shipping their pets on Continental.
Now it's VR's turn. Beginning in mid-May, VR's new "Pet Miles" program will award flying club miles for cats and dogs being flown to London. According to the VR news release: "There'll be special 'Pup-Grade Miles' for the dogs and a 'Frequent Feline' club for the cats!"
[VR is the 2-letter code of Sir Richard Branson's airline, whose name triggers e-mail blockers.]
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...
Summer fares to the Bahamas under $200
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Fly to the Bahamas this summer for $188 roundtrip. US Airways is offering that fare on flights from eastern cities and Chicago to Freeport, Bahamas, for travel through Oct. 15. Book tickets online only, at least 7 days in advance, and BY THURSDAY, MAY 15.
> More...
Extended: Europe with a free London stopover and hotel stay
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British Airways has extended its triple whammy of an offer on spring and summer flights to Europe: low airfares from $323 roundtrip, a free stopover in London, and 2 free nights in a London hotel. Travel is valid through Sept. 24, with the lowest fares available from now through June 18. Book tickets at least 7 days in advance and BY THURSDAY, MAY 15.
> More...
R E A D E R R A N T S & R A V E S
This Week's E-mail Bag
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"In this week's issue #246, May 7, 2003, the letter from Kendall Stork, President and CEO of Citibank (South Dakota), N.A. is characterized as corporate-speak. I recognize the tactic from George Orwell's book 1984. In that sinister warning of totalitarian governments/companies, the Ministry of Plenty promised the following:
"'As short a time ago as February, the Ministry of Plenty had issued a promise (a 'categorical pledge' were the official words) that there would be no reduction of the chocolate ration during 1984. Actually, as Winston was aware, the chocolate ration was to be reduced from thirty grammes to twenty at the end of the present week. All that was needed was to substitute for the original promise a warning that it would probably be necessary to reduce the ration at some time in April.'
"George Orwell/Eric Weiss was truly a prophet.
"I love your newletter!"
- Doug
"After Easter I decided to take a few days off and get away. I have 49,000 Aeroplan pts, 30,000 with Continental and 22,900 with United. Interesting what I learned. I looked into getting away as three days before travel. Continental wanted 55,000 since I was not going to remain a Saturday. United said that I could buy the extra 2,000 pts. needed but it would take 3-5 business days to go through.
"Aeroplan (and you mentioned this before) charges for booking flights through the phone and soon to come online AND they also now charge a fuel surcharge. I was shocked at the fuel surcharge, especially when fuel prices are going down. This is really a gouge and does not create an interest to fly AC. I am thinking that when I want to redeem my points, I might use United (Star Alliance connection) and go out of DTW instead of getting hooked on the surcharge."
- Glenn
F R E Q U E N T F L I E R F U N N I E S
True (Funny) Travel Stories
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A few years back, my pregnant wife and I were traveling on United with our then two small boys (5 and 3) from Dayton OH to Seattle WA via Chicago to go to her brother's wedding. After getting up early, packing the car, traveling to the airport, checking-in, waiting in Dayton, and flying over the Loop, we deboarded at O'Hare, and dragged the boys through the tunnel between terminals, with all the sights and sounds that encompasses, finally reaching out Seattle out-bound gate.
Only then did we notice the late arrival and departure times for the West Coast flight. After an extra hour, we finally boarded the DC-10 and got in the taxi queue for another 45 minutes before take off. Ultimately getting airborne, we as well as many other passengers were feeling very frustrated and grouchy.
After level off breakfast service was announced (tells how long ago it was), and we had three choices in coach: scrambled eggs with sausage, pancakes with syrup, or cold cereal with a bagel. In a most empathetic voice, the chief steward then proceeded to "..apologize in advance if the attendants run out of a particular item before getting to your row, as they could not hope to stock 100% of each meal type. But you shouldn't worry, as they all taste pretty much the same anyway!"
After a brief pause, the entire plane broke out in laughter, and despite the many delays and frayed nerves, the remaining 3-hour flight was enjoyable, even the cardboard food!
[Thanks to Tom S., who contributed this week's story for the enjoyment of Crier readers.]
Until next week...
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