UP FRONT..........................................................

Discounters Flexing Mileage Muscles
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We don't generally impose themes on these newsletters. But occasionally, themes are thrust upon us.

This is such a theme week, with no fewer than 3 developments falling under the general heading of low-fare carriers pumping up their loyalty efforts (see the AirTran, ATA, Frontier stories below). While none of the developments qualifies as a quantum leap forward, the trend -- if that's what it turns out to be -- is noteworthy.

In today's travel environment -- where JetBlue's inflight product is arguably superior to United's -- 1 of the few truly distinguishing features of the major carriers is their robust mileage programs. With the exception of America West, whose full-featured program competes head-to-head with Big Six programs, the discount airlines have universally ceded the mileage advantage to their high-cost adversaries.

This week's moves by AirTran, ATA and Frontier suggest that the discounters may be considering the possibility of looking into, maybe, eventually, enhancing their loyalty programs. Which would be great for consumers.

Where should they begin? Glad you asked! Any program which expires miles after a miserly 12 months (AirTran, ATA, JetBlue, Southwest, etc.) should begin the upgrade process by adopting the 36-month expiration schedule that is standard among the major programs and, from a consumer standpoint, the recognized best practice. (To Frontier's great credit, EarlyReturn miles don't expire until the end of the fifth calendar year after the date of the last earning or redemption activity.)

Absent a consumer-friendly mileage-expiration policy, discount carriers' programs will always be also-rans.

Air Canada On Schedule to Exit Bankruptcy
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Air Canada has completed the final step in its bankruptcy restructuring plan, securing a $184 million investment from Cerberus, a private capital-management firm.

The transaction puts AC on track to exit bankruptcy protection on Sept. 30, as scheduled.

ON SITE...........................................................

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

Meso is wondering whether to switch allegiance from AAdvantage to BA Executive Club. Miles for lost luggage? Beer Man says, "Go for it." Alan is looking for strategies to access airport lounges using miles. And much more...

Do you have questions, answers? Post them to the Forum!

-> More: http://frequentflier.com/cgi-local/pl.cgi?forum

MILES & POINTS....................................................

Aeroplan Bonus for South America Flights
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To promote new service between Toronto and both Bogota, Columbia and Caracas, Venezuela, Air Canada is offering 2,500 bonus miles for coach and 5,000 miles for Executive-class roundtrips on the routes through Aug. 30.

-> More: https://www.aeroplan.com/en/offers/promotions.jsp

AirTran Makes A+ More Rewarding
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In an interesting inversion of standard practice, AirTran has stolen a page from the playbook of such bank card travel-rewards programs as Capital One's.

AirTran now offers A+ Rewards members the option of redeeming their credits "for any flight, on any airline, anywhere in the world." In other words, AirTran will simply purchase a ticket on the member's behalf, just as the bank's travel rewards programs do. While the tickets are restricted (30-day advance purchase, Saturday-night stay required), they are revenue tickets and will be significantly less encumbered by capacity controls and blackout dates than award seats typically would be.

The new non-AirTran awards don't come cheap.

Whereas a roundtrip coach award ticket on AirTran is priced at 16 credits (= 8 roundtrips), a comparable award ticket for travel on another carrier will cost 32 credits. For 100 credits, a member may request an award ticket anywhere in the world, or a 1-year companion pass for travel on AirTran.

Again, these new awards would be more meaningful if A+ Rewards credits didn't expire after 12 months. To earn an international award, a member would have to fly 50 roundtrips a year -- quite a feat on a carrier with such a limited route network.

Separately, elite members get 2 new perks: guaranteed full-fare coach seat availability and the ability to transfer credits to other A+ Rewards members.

-> More: http://www.airtran.com/programs/aplus/index.jsp

ATA Adds Elite, Extends Expiration
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The big news from ATA is the conversion of Travel Awards from a limited-time promotion to an ongoing program.

Also new: an elite level for ATA's best customers. Elite benefits include priority check-in, priority boarding, preferred access to business class seating. (We'll have more details on elite status next week. ATA's e-mail was short on specifics, and there was no elite information to be found on their website.)

In the short term, there are minor changes to the points-expiration scheme. Points earned between July 1, 2003, and Aug. 31, 2004, will expire on Aug. 31, 2005. And all points earned on or after Sept. 1, 2004, will expire after 12 months.

The program's basic earning unit has been changed from trips to points. One-way trips now equal 500 points, and roundtrips equal 1,000 points. The award requirements remain unchanged, with a free domestic roundtrip offered after 6,000 points (formerly 6 roundtrips).

Finally, Travel Awards members can now access their accounts and make award reservations online.

-> More: http://ata.com/whats_hot/travel_awards/main.html#enhancements

Frontier to Join Points.com Exchange
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Beginning in late Aug., Frontier will become the first low-fare carrier to participate in Points.com's online mileage exchange program. Elite members of Frontier's EarlyReturns program will receive complimentary PointsPlus memberships, normally priced at $19.95.

Some time thereafter, Frontier will begin allowing EarlyReturns members to buy and share miles, using Points.com's back-end systems.

-> More: http://www.frontierairlines.com

More Real Estate Miles from United
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Between June 20 and July 31, Mileage Plus members will earn 5,000 bonus miles for each real estate transaction closed through LendingTree (use Reservation Code UN5-5000). That's over and above the 3,000 miles per $10,000 in purchase or selling price normally awarded.

-> More: http://united.lendingtree.com

STEALS & DEALS....................................................

Deal Alert from SmarterLiving.com
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1) JetBlue's New LaGuardia Flights from $79 Each Way

JetBlue has expanded its service to include New York's LaGuardia airport. Flights between LaGuardia and Ft. Lauderdale begin on Sept. 17 and are valid for travel through Nov. 18. Prices start at $79 1-way. In addition to this new route, JetBlue is also offering new flights between Boston and Ft. Myers for travel from Oct. 21 through Nov. 18. Prices start at $69 1-way.

JetBlue's addition of routes to/from LaGuardia could mean trouble for the airport's primary carriers, Delta and US Airways. The sale fares are competitive with other airlines' prices, and JetBlue's prices are likely to continue to drive down the prices on similar routes flown by other airlines

-> More: http://www.smarterliving.com/air/deal.php?id=6830

2) Introductory Mexico Fares on American from $228

To promote its new service to the Mexican city of Torreon, American has announced sale fares starting at $228 roundtrip. Departures are valid from Aug. 1 through Sept. 12.

Book tickets at least 7 days in advance, and by Tuesday, Aug. 31.

-> More: http://www.smarterliving.com/air/deal.php?id=6835

READER RANTS & RAVES..............................................

Feedback from the Frontlines of Travel
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[This is a follow-on to Eric's comments last week, which were in response to Jane H.'s original complaint regarding the unavailability of Delta awards.]

"We get great advice from Eric, the Delta indoctrinated employee about paying double to get a seat on a Delta flight. Why doesn't Delta just change the amount to double the existing award level amount and just skip the hassle? Getting a regular mileage seat on Delta has the same odds as winning a lottery. Why would anyone want partner miles on Delta; it would be like buying sleeves for a vest." (Bill S.)

................./

"First off, thank you so much for your website, which I only discovered this morning, as a result of the New York Times article. I am a VERY frequent flier (about 100,000 miles projected on United for this year, plus more than a few on other carriers as well) so I really appreciate what you're doing.

"I have a question. You write: 'If you can concentrate your miles in a single program--as we never cease suggesting you do--the most appropriate card will most likely be the one associated with your airline program.'

"Why do you suggest we concentrate our miles on one program? I've always done that, but I'm beginning to rethink it. Here's why: on United, the privileges you get with 1K (100,000 miles per year) aren't that much greater than with Premier Executive (50,000 miles per year). Since no single airline covers all the cities we want to travel to (Austin, TX, for example -- only American had a non-stop from LAX, our home base) why not spread the wealth? I've begun to acquire a few miles on American for this reason, so that in the future if there's a city that United doesn't serve (or serve easily) I'll have another option.

"Mind you, I felt almost like a traitor when we took that American flight. I know it sounds crazy, but...

"So here's my question: which do you think is better? Being a 100,000 mile per year flier on one airline, or a 50,000 mile per year flier on two?" (Joel in Los Angeles)

[Editor's Note - Joel makes a good point. In high-mileage situations, such as his, it may indeed be sensible to deviate from the consolidation rule, in the interest of earning elite status in 1 or more additional programs. Depending on the programs in question, 2 Golds may be better than 1 Platinum.]

If you have a rant or a rave, e-mail us at rants@frequentflier.com (mailto:rants@frequentflier.com).

Until next week...