Here's a very interesting story on Priceline.com:

http://e-comm.internet.com/opinions/priceline.html

This story has a bunch of details on their new agreement with Delta ... and it is *very* interesting. Basically Delta is now the preferred supplier for tickets on Priceline.com, with Delta basically getting first shot at all offers (even if Priceline.com may earn a lower commission from Delta!).

Also, Delta has the option of purchasing 15.1 million shares of Priceline.com for $1.16 per share. Given the unbelievable track record of internet stocks lately, this could potentially be worty hundreds of millions of dollars to Delta!

Delta also just signed a contract with another company for $50 million dollars in internet services over 5 years. The way most airline websites are, I'd be surprised if they spent $1 million a year on them, never mind $10 million!

I think this move by Delta is bold and could be very advantageous for them in the long run. It gives Delta an outlet for selling unused inventory that is distinct and seperate from their own operations, and will therefore not alienate it's full fare paying customers.

Well, I have not had any good experiences with Priceline, nor have I heard any, so I do not see this as a major play.

It is interesting tho -- DL locks in a major player in both the consolidator game (that's all priceline really is) and the online travel/internet game.

Let's face it -- there are scores of online companies that are yet to post their FIRST $ in profit yet are trading in the $100's/share ranges.

If nothing else, it makes DL's stock more appealing to me!...

I thought I read somewhere that no priceline.com tickets come with FF mileage or elite segment credit. Anyone know about this?

gercohen ~ That is correct, it is one of the conditions of ticketing from Priceline.com that you don't get ff mile credit.

On the other hand, by doing that it allows the airlines like DL, TW, and Americawest to accept lower bids than they otherwise would since they don't have to provide that particular benefit.

For ff mile junkies like those of us here, that's probably unacceptable, but there are a lot of people out there who are more worried about price than elite status!

I again reiterate that I think this is a big deal. If DL can sell only one more seat on every flight, even at a rediculously low price, that would add tremendously to their bottom line. Also, Priceline.com is working on an IPO, and 15 million shares of stock at $1.16 could be worth a lot of money!

I was just in the "executive library" reading Information Week, and they have an article in there about the $50 million dollar contract Delta signed for internet services. You can read it at:

http://www.informationweek.com/718/18iudel.htm

Note that one of the planned additions to the SkyLinks website this year will be the ability to redeem award tickets online (YEAH!)

Now, if United would just upgrade their horrid website. Why do airlines at least in the US with in my opinion AA do such a bad job with their website. United has to be the worst out of the big airlines though.

Phil