U P F R O N T

United Lands in Bankruptcy
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The waiting, watching and worrying are over. On Monday, United filed for Chapter 11 bankruptcy protection.

What to expect?

In the short term, it's business as usual, just as it has been for US Airways since their August bankruptcy filing.

Medium term, United will shrink: fewer routes and flights, smaller planes. And that means fewer opportunities for earning and burning miles, among other "expect less" effects.

The weightier question is that of United's ultimate survival. There are compelling reasons to expect United to emerge from bankruptcy a leaner, meaner company with strong prospects.

But United's new CEO Glenn Tilton faces a mountain of challenges. And his record during his short tenure raises doubts.

Tilton and his team bear a large share of the responsibility for United's rejected loan-guarantee proposal, which the ATSB reviewed and deemed unsound.

It was on Tilton's watch that negotiations with the mechanics' union culminated in a "No" vote on concessions, which unraveled the skein of give-back agreements brokered with other unions.

And, as further proof of Tilton's failure to connect with labor, his claim -- repeated ad nauseum to the media -- that consumers can expect employee morale and customer service to improve during bankruptcy defies logic. Since when do anger, resentment and fear of job loss make for a better motivated work force?

Bad business planning and labor-relations ineptitude... not exactly a prescription for certain success.

Cross your fingers and stay tuned. This promises to be a wild ride.

M I L E S & P O I N T S

Best Western Bonuses Stays
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Gold Crown Club International members will earn bonus airline miles for multiple Best Western stays between Jan. 15 and Mar. 31, 2003. The bonuses apply as follows:

1st stay - 250 base miles
2nd stay - 500 total miles
3rd stay - 750 total miles
4th stay - 1,000 total miles
5th -10th stays - 500 total miles each

Bonus miles can be earned in the programs of Air Canada, Alaska, America West, American, Delta, Northwest, United and US Airways.

Register at http://www.goldcrownclub.com or by calling 1-800-237-8483, promotion code BW4MLS.

ClickRewards Ups Holiday Earning Rates
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The "new" ClickRewards is offering double and triple miles for holiday shopping at selected online retailers.

These are the most generous earning rates we've seen from ClickRewards since their reemergence as a rather lackluster miles-for-shopping portal.

> More...

Delta Revamps Elite - Part 1
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In a policy change likely to be copied widely among major airlines, Delta has introduced a new revenue-based scheme for awarding SkyMiles elite status.

Beginning in 2003, instead of earning elite based on miles and segments, SkyMiles members will be awarded Medallion Qualification Miles, consisting of the actual flown miles multiplied by a factor ranging from .5 to 2, depending on the type of ticket purchased.

At the high end, first- and business-fare tickets rate a multiplier of 2. The full coach (Y, B, M) multiplier is 1.5. Discounted coach (H, Q, K, S) is 1. And heavily discounted fares (L, T, U) get a .5 multiplier.

EXAMPLE
A 500-mile flight taken in 2003 will count toward 2004 Medallion status as follows:

PROS
In a word, it's fair. The basic principle: If you pay more, you get more. And if you pay less, you still get something. (Contrast this with US Airways' recent ill-advised move, quickly rescinded, to withhold elite-qualifying miles completely for cheaper tickets.)

CONS
It's complicated. Travelers need a scorecard -- or a rate card -- to keep track of which fare codes are associated with which multiplier. And it's not just Delta's own fare codes. Because there's no industry-wide standard, the codes among SkyTeam partners differ, exacerbating the problem.

I'm going to don my consumer advocate cap here and call on Delta and its SkyTeam partners to do a better job of making fare types apparent to ticket-buyers. If this alphabet soup of codes is to play so important a role, they should be exhibited prominently whenever a fare is displayed, on Delta's site, on Orbitz or Travelocity, wherever.

Next week, we'll look at the rest of the SkyMiles changes announced today.

> More...

e-Rewards Adds American, Ousts United
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e-Rewards, the "invitation-only e-mail rewards program," has changed the names at the top of its partner roster. American is in; United is out.

Beginning Jan. 3, e-Rewards members can redeem their earnings for AAdvantage miles.

> More...

Frontier Doubles Miles to Mexico
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On Dec. 20 and 21, Frontier will launch service between Denver and Cancun and Mazatlan, respectively.

To promote the new flights, Frontier is offering EarlyReturns members double miles for travel to/from both destinations through Feb. 12, 2003.

> More...

Mileage Plus Elite Bonus for Lufthansa Flights
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Beginning Jan. 1, 2003, Mileage Plus elite members will earn elite mileage bonuses -- normally earned only for United and United-coded flights -- when flying Lufthansa's transatlantic flights.

The bonus will be 25% for Premier members, 100% for Premier Exec or 1K members.

Earn Double United Miles at 1800flowers.com
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Mileage Plus members will earn 20 miles per dollar spent on orders of $29.95 or more at 1800flowers.com through Dec. 31.

Use promotion code DUAL and provide your Mileage Plus number during checkout to receive miles.

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...

Six airlines offer off-peak holiday fares from $100 R/T
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Time is running out to book your holiday flights, but you can still save money if you avoid the busiest travel days. Air Canada, America West, American, Delta, Northwest, and United have extended their fare sales to domestic and Canadian destinations, for travel between now and Jan. 6.

The lowest fares are generally for travel on Dec. 25, or on Jan. 1 or 6; America West also includes Dec. 18 in its list of dates with the lowest fares, and Air Canada excludes Jan. 1. Slightly higher off-peak fares are also available for other dates on all 6 airlines. Purchase and travel requirements vary by airline.

> More...

Caribbean airfare sales from $325 R/T
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Trade in cold winds for warm breezes with American's sale fares to destinations in the Caribbean, including San Juan, PR, and St. Thomas, USVI. Travel is available through June 5. Book tickets online only, at least 14 days in advance, and by Thursday, Dec. 12.

Air Jamaica is offering matching fares for travel to/from Jamaica and the Caribbean; book tickets at least 7 days before travel.

> More...

S W E E P S & F R E E B I E S

Win 250,000 AAdvantage Miles
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Enter American's "Million Miles Between Us" sweepstakes by Jan. 31, 2003, to win 1 of 4 grand prizes: 250,000 AAdvantage miles.

To enter, book an American flight on AA.com and complete travel by Mar. 31, 2003. Or, enter without booking by completing the online entry form. Receive an additional entry by forwarding the sweepstakes information to others.

> More...

Until next week...