Delta and Northwest both filed for bankruptcy this afternoon after market close.Both were expected to file in advance of bankruptcy law changes going into effect October 17th. Northwest did not receive any debtor-in-possession financing commitments, instead opting to operate with its existing $1.5 billion in cash. Delta received commitments of up to $1.7 billion in debtor-in-possession financing from GE Commercial Finance and Morgan Stanley and has received a separate commitment of another $350 million from American Express. Amex prepaid the purchase of half a billion Skymiles last year to infuse cash into the airline. One requirement of those funds was that as a first act Delta ask the bankruptcy court to reaffirm the airline’s frequent flyer program liabilities. I don’t expect immediate changes to either airline’s frequent flyer program. If anything I’d anticipate more mileage…
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The Westin Diplomat
I spent Labor Day weekend at the Westin Diplomat on a cash and points award reservation — $60 and 4000 Starwood points per night. It’s located in Hollywood, Florida — North of Miami, not exactly in the middle of the action but right on the Atlantic Ocean. In the 60’s and 70’s the original Diplomat was frequented by Rat Pack types. The hotel closed in 1991 and was acquired by the International Brotherhood of Plumbers and Pipefitters in 1998, torn down, and rebuilt. A building project funded by a union pension to a tune just shy of $1 billion dollars seems like a good idea, doesn’t it? So it should be no surprise that the State of Florida managed to force the union to get an independent trustee appointed to oversee the money and to…
Budget Car Rental Discount
I’m usually an Avis guy (recent problems notwithstanding). But sometimes the rates from other car companies are just too good. I recently booked a colleague on a 13-day full size rental with Budget that came to $295 — that’s $22.69 a day including taxes and fees. Their United Airlines special offer gives miles and a real 10% – 15% off the best web rate. Not always useful, but one for the arsenal.
Gratis Networks becomes FreePay
About 3 weeks ago, Gratis Networks changed its name to FreePay. Gratis, of course, is the company that spawned the Free iPods offer and then expanded into things like free digital cameras and free Xbox 360s. As long-time readers of this site know, I spent a lot of time figuring out the best ways to go about getting these offers. In general, you have to complete a marketing offer and get several friends (3 to 10, depending on the electronic item you seek) to do the same. If you wait long enough, easy offers will show up — offers that are free or free for a trial period long enough to cancel without getting charged. Customer service is slow, the company isn’t responsive, but I’ve always gotten my items — the iPod mini, the photo…
USAirways-America West Frequent Flyer Partnership Coming Soon
In the next few weeks you’ll be able to earn miles in the program of your choice — USAirways Dividend Miles or America West FlightFund — when flying on either airline. Sometime in 2006 miles from both accounts will be merged together. The two airlines have started to release some information regarding their frequent flier plans. Starting this fall, members of US Airways Dividend Miles plan and America West’s FlightFund plan can earn and redeem miles throughout the new airlines’ combined route system. Next year, the miles will all be combined into a single Dividend Miles account. And the miles will not expire as long as your account is open, officials of the airlines said. …The airlines speculate that “Day 1” of the merged airline could be as early as Tuesday, Sept. 27.
Earning and burning miles for hurricane relief
The Akron Beacon-Journal carries a piece (Hat tip to Tripso Daily) on using your points to help Hurricane Katrina victims. The best advice, no surprise, is to visit Webflyer.com which has a rundown of how to use your points to make a difference. Most major programs have a way to either donate points (which in many cases will be converted to cash for charity by the loyalty program) or to earn points for your own donation of cash.
Gas Prices Rise, Rental Car Gas Becomes Cheap
Tyler Cowen points to gas prices higher than a rental car company’s price for refilling your tank. Gas at the pump in downtown Birmingham: $3.99/g. Gas from Hertz when you return it: $3.05/g. Still, be careful out there — there may be other costs besides per-gallon costs, such as flat service charges on gas refills. And this doesn’t mean you should “prepay” the gas which requires you to return the car empty in order to make out well since you’re prepaying an entire tank of gas (again, check the service fees).
Why can’t Avis update my payment information correctly?
Why did it take four tries to update my credit card number with Avis? The first two times I called and the agent took the new number, each time telling me that it was updated correctly but on followup calls I learned that nothing had changed. I had my Diners Club card as my default payment method in my profile, naturally I prefer their benefit of primary insurance coverage. On the third try I was successful in updating the card on file but despite assurances to the contrary it did not get updated on my reservation for tomorrow afternoon. Fourth call and I’m told all is correct, we shall see when I arrive at the airport whether my name and space number is on the board or if I have to go to the desk…
Am I the last to learn truly disturbing news?
Sony Pictures is apparently going forward with Road House 2… without Patrick Swayze. Christina Applegate’s husband may star instead. This just seems very, very wrong. Up next… Point Break 2 without Keanu Reeves, Patrick Swayze, or Gary Busey?
Going Airside When Not Traveling
If you need to accompany a passenger to their gate but aren’t traveling that day, airlines have differing rules in place for issuing passes to get past security checkpoints. If you run into trouble, though, just buy a fully refundable ticket then check in and go through security… and refund the ticket. You can do this to go airside any time you want. It’s never been clear to me how prohiting non-traveling passengers airside helps with security, terrorists can certainly buy tickets. I’ve always assumed it was to reduce TSA workload by reducing the number of people going through checkpoints. It’s an instance where customers are inconvenienced rather than addressing poor TSA procedures and staffing issues.
