View from the Wing

Free $25: ING Direct Online Savings Account

by Gary Leff on March 25, 2005

Mar 25 2005

ING Direct is offering 2.8% on their FDIC-insured online savings account.That’s a pretty good rate for a savings account (my local bank is offering a similar rate on 12-month CDs). What’s more, ING Direct offers new customers $25 just for opening the account when referred by an existing customer (the referrer gets $10). There are no account minimums and no fees. You can open the account with $1 and get credited an additional $25. They’ll make you wait some time, I think a month, before you can withdraw their $25. Other than that, no restrictions. There was once a $50 referral offer, I haven’t seen that in a couple of years though. I signed up at $25, pulled my money out, but then a couple years later realized I still had the account (with 17…

Fare Alert Email List

by Gary Leff on March 23, 2005

Flyertalk’s ScottC has reactivated his free travel deal alert email service. He says that all of the subscribers to the old email have been imported into the new system. This isn’t a ‘TravelZoo Top 20’ or airline weekly e-fare list — it’s a low-volume alert list to let you know about breaking deals and fare glitches, such as the famous $61 roundtrip to Iceland, $20 British Airways fare to anywhere in Europe in World Traveler Plus, and $55 business class deal to Puerta Vallarta. Definitely worth signing up.

Independence Air Discounts

by Gary Leff on March 23, 2005

Independence Air’s 20% discount which had been set to expire March 31 is now valid through July 31. You have to answer a short questionnaire about your company and you’ll be emailed a unique link that generates fares 20% off what would otherwise be the lowest price for an itinerary. There’s also a 20% off link from Business Week that’s valid through June 30, no questionnaire required.

Squeezing the Profit Margins of Frequent Flyer Programs

by Gary Leff on March 22, 2005

Mar 22 2005

Randy Petersen points out that airlines are booking balance sheet adjustments to increase their expected liability for their frequent flyer programs. When an award is redeemed, frequent flyer programs recognize revenue from mileage they’ve sold and they have to pay for the awards that are claimed. A domestic saver award might entail a frequent flyer program ‘buying’ a seat from the airline for $25. A partner award is more expense, and an ‘anytime’ award (that generally requires about twice the number of miles to redeems) is more expensive still. Frequent flyer programs are apparently seeing greater redemption of anytime and partner awards than past experience would predict, so they have to acknowledge an increased future liability. Randy believes this phenomenon is good for members of frequent flyer programs, because it illustrates the value of partner…

The TSA: Mend it or end it?

by Gary Leff on March 22, 2005

Mar 22 2005

Bob Poole wants to mend the TSA, Jim Harper wants to end it in a debate on transportation security. Some important points from Poole, the defender of government’s role in aviation security in this debate:Against a comprehensive terrorist threat whose true dimensions are necessarily unknown, a free and open society has endless points of vulnerability. Attempting to “harden” all likely targets is a losing strategy—and a recipe for bankruptcy. …The single most effective thing that’s been done in this regard is to retrofit much stronger cockpit doors, to deny terrorists access to pilots and controls should they manage to get on board. But the rest of aviation security policy is an inconsistent mix of overkill and underprotection. Mandating 100 percent inspection of checked bags for explosives, but not of carry-on bags, makes no sense. Neither…

A Good Hotel Responds to Their Guests’ Needs

by Gary Leff on March 22, 2005

Mar 22 2005

Via Tripso.com, Mariah Carey is a pretty demanding hotel guest. When the singer’s aides arrived at a London hotel at 2am yesterday to check preparations for her imminent arrival, they were dismayed to find the red carpet had not been rolled out. They explained that, whatever time of day or night she arrives, Miss Carey is always welcomed by a thick-pile red carpet illuminated by large white candles. Her limo circled the block while the hotel prepared for her arrival.

American Mastercard Bonus

by Gary Leff on March 22, 2005

Mar 22 2005

The American Airlines Mastercard is again offering no fee for the first year and 15,000 bonus miles with first purchase. Citibank has been known to award the bonus miles even to people that have had the card in the past, despite terms that specify that the bonus can only be earned once. Best practice is to print out the application page which mentions the 15,000 bonus miles and also to print out the terms and conditions which mentions no annual fee for twelve months.

Diners Club Award Changes and Bonuses

by Gary Leff on March 21, 2005

Mar 21 2005

Starting April 1st 2500 Diners Club points will yield only 1500 Priority Club points, down from the current 2000. It will also take 3000 Diners Club points for 1 Southwest Rapid Rewards credit, up from 2000. Club Rewards members have until March 31 to redeem at the current rates. Meanwhile, transfers of Club Rewards points between May 1 and August 31 will receive a 50% transfer bonus just like last year. This is something of a disappointment because previous years had seen a 100% summer bonus. Between March 1 and May 31, transfers to USAirways earn a 25% bonus. (Registration required.)

Frequent Flyer Advice: the End of Nuance and the Last Man

by Gary Leff on March 21, 2005

The Denver Post carries a piece in what seems like a neverending stream of stories on how difficult it is to use miles, and how miles are worth less today than ever before. (Hat tip to Today in the Sky.) The article makes the correct point that major airlines are on financially shaky ground. After two years in bankruptcy, United still lost over $300 million in January. But while the future of USAirways is up in the air, most flyers have little to fear in the immediate term over losing their miles. To name just one data point, American Express prepaid half a billion dollars for miles, they seem pretty confident about the future of the Skymiles program. Still, the article is correct that the number of miles required to redeem many awards has gone…

The importance of credit card miles to airline bottom-lines

by Gary Leff on March 20, 2005

Mar 20 2005

I’ve written here in the past about the importance of frequent flyer miles to airline bottom lines, and in particular the importance of co-branded credit cards which are the single largest source of non-flight miles. When United entered bankruptcy, BankOne (since acquired by JP Morgan Chase) provided $500 million in debtor-in-possession financing. The bank needed the airline to survive because their most profitable credit card product is the United Visa. Now the bank is talking about loosening restrictions on loan covenants in order to allow the airline room to operate. American Express pre-paid the purchase of $500 million worth of Skymiles in order to keep Delta out of bankruptcy. Again, an airline is kept afloat because it’s needed to sustain a credit card business. Credit card miles are big business, and not just for the…

Free $25: ING Direct Online Savings Account

Fare Alert Email List

Independence Air Discounts

Squeezing the Profit Margins of Frequent Flyer Programs

The TSA: Mend it or end it?

A Good Hotel Responds to Their Guests’ Needs

American Mastercard Bonus

Diners Club Award Changes and Bonuses

Frequent Flyer Advice: the End of Nuance and the Last Man

The importance of credit card miles to airline bottom-lines

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About Gary Leff

	Bilt Mastercard® Earn Points Paying Rent (up to 100,000 each year) plus earn 3x at restaurants; 2x on travel; as long as you make at least 5 purchases per month. No annual fee.
	Capital One Venture X Rewards Credit Card Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months (See rates and fees)
	Citi® / AAdvantage Business^TM World Elite Mastercard® Earn 65,000 American Airlines AAdvantage® bonus miles after spending $4,000 in purchases within the first 4 months of account opening. AAdvantage miles are the currency I've redeemed most.[See rates and fees]