Randy Petersen
Looks like a healthy and anxious crowd. Thanks for coming on tonight. Some of you missed a great FlyerTalk gathering in Las Vegas over the weekend, I hope to make others in the next few months. Shall we begin....whose got the easy questions and remember, I'm not a fast typer....

Mikel at WebFlyer
This question was submitted earlier by kikokona: Randy, can anything be done legally against an airline that doesn't offer any standard reward seats,thus making FF use 2x the miles for a reward seat ie...CO has NO standard reward seats available to Spain or France next summer from May thru Sept..We have "truth in advertising" laws in some states that atty. gen. offices take care of.Thanks.

Randy Petersen
An often asked question and honestly nothing can really be done other than from our government. you might remember that I was quite a wise ass in decrying the Customer First initiative that the industry tries to pass along to the guys and gals in Washington. I have always asked that there be a minimal amount of discounted seats per plane. I do not have problems with the idea of twice the miles because I know it's not really twice the miles. The other awards are half price. now you may be thinking I'm smoking something but the truth is that for the first generation of these programs, there were only what you call twice the miles awards and actually - no one ever complained about them in the 80s. The real secret to any program - choosing the right one. I know many people who collect miles in many programs just so they have award back up plans. Now, there just might be some hope, because in the November issue of InsideFlyer, we mention a study by the government of Australia where they accuse Qantas of not giving enough seats away and are threatening action....that is what it would take.

MileKing
Any idea how much business US Air has lost as a result of the "no status miles on low fares" announcement (since rescinded)?

Randy Petersen
This business has been so goofy lately and the announcements by others that it looks like it is only in single digits. The news has been so gloomy for so long that the general population really never got active and the travel agency industry so so glimmer of hope. I don't think it was enough to hurt them except from the crowd like tonight. We recently did a survey and some 67% of you still harbor ill feeling toward them for the attempted change......that is called bad PR.

Mikel at WebFlyer
This question was submitted earlier by Richard J. Piagari: You once recommended loyalty to one program. My wife and I have combined totals of 340,000 AAdvantage miles and 295,000 HHonors points. We believe there is strength in numbers. Are we OK or are we missing something?

Randy Petersen
I have long been an advocate of strength in numbers - as long as those numbers are in a program whose plusses are parallel to your goals. There have been times in the past few years when i've had to advice someone to diversify their mileage portfolio and again, it depends on the individual. Looking at your numbers (be very proud of them) and knowing what I know about redemption at AAdvantage and Hilton, I think you're in great shape. AAdvantage could have a better alliance deal with BA and a domestic alliance of greater strength but they really have it all and like you, I'm pretty sold on Hilton with nary a problem - I liked their growth. Stay the path right now. Wandering can become a habit and I know plenty of people that went from loyal to promiscuous and now have nothing but broken accounts.

SanDiego1K
Should we expect further reductions in the fare classes on which UA SWUs can be used in 2003?

Randy Petersen
I was just asking that very same question the other day. At this time I don't think so because of the lesson learned from new partner in wings - US Airways. United really absorbed that reaction and possible consequences and I think they are in a mode of growing the business through some new partnerships they have coming up rather than protecting cost by looking inside. My money is on business as usual right now and as you know UA can't really afford another PR nightmare...remember the summer of shame?

Mikel at WebFlyer
This question was submitted earlier by Sara V: If I bank 15K miles on Alaska Air in 2003 which should qualify me for ELITE status, will Delta or CO honor/transfer to their ELITE status (which is @ 25K miles)?

Randy Petersen
These days elite is elite and it's likely that it will remain that way for some time as re-qualifying continues to haunt the airlines. And truthfully - most of them don't know Alaska well enough to know they have a started elite at lower levels - though that is likely to change as they continue to grow that airline east and west. Bottom line: Earn and trade, though if I were you I would not short change their program as members of FlyerTalk know, like Punki. Lots of upgrades and a marvelous assortment of partners......BUT it's your call.

TrojanHorse
Has there been any new revelations regarding the DL/CO/NW alliance?

Randy Petersen
Really nothing - half of the experts (of which I am not) think it will go through because of the US/UA deal, the others point out the market margin of 53%. My personal observation is that is is a dumb idea and just what we need - the Leo and Gordon Chairman and Vice Chairman power struggle. They are different operators and as I wrote in the Oct. InsideFlyer, there is nothing complementary about their frequent flyer programs other than both of them have names in which two words are joined - OnePass and SkyMiles. I actually hope it doesn't get approval so that they won't be mad at me when I have to diss their alliance since Delta sure hasn't gotten very far with their United relationship.

Mikel at WebFlyer
This question was submitted earlier by Bill P: What's the cheapest way to obtain an additional 4K base miles between now and 12/31/02 to gain DL elite status if I only have Fri. nights - Sun. nights to accumulate these miles?

Randy Petersen
This is a question that shows how smart I am. I don't know that answer, but I do know where the answer is....and you're very close. You could either get the new Delta Platinum Business credit card in which up to $10,000 you spend count as Medallion requalifying miles (so you can stay home on the weekends and watch football) or you can visit the infamous Mileage Run forum on FlyerTalk where I'm willing to bet a few dozen members know this answer in three seconds or less. See, it not what you know - but also who you know: FlyerTalkers.

FewMiles
Do you think AA will be able to continue to offer any fare upgrades? It's a feature that really distinguishes their program. Or will they start to restrict upgradeable fares like AC, UA, CO(?), and others.

Randy Petersen
Probably not. American really hasn't gotten themselves into alliance overload which is what has happened to the airlines you name. Is there any doubt that Continental suffers because of their former relationship with America WEst and with Northwest in that perhaps 17% of their upgrades are going elsewhere and you certainly understand the pressure that UA has with everyone on the world that comes to America as a part of the Star Alliance is itching to get something from United and let's remember that AA invented "the business" of frequent flyer programs which means they have more monetary support from their program to operate than any others - meaning less pressure to have their customers pay up. I think AA is fine for now - they are smart operators and i'll give them a plug, I love their legroom in Coach.

Mikel at WebFlyer
This question was submitted earlier by Sunny: Will there be a Starwood autumn promotion like CNTU with Hilton and Faster Free Nights with Hyatt?

Randy Petersen
Good timing on this question. We looked goofy recently because we had the inside scoop in their fall promo called Triple Play. Just the day and a half before launch they pulled the plug and some of you thought we didn't know what we were talking about but the good news is that they admit they were going to do it. Apparently October booking were looking better and they decided to bite the bullet and not add additional liability since without blackout dates they tend to have a more expensive program to offer. You mention Hilton and Hyatt....really you mean just Hyatt because Hilton doesn't have a current big promo running and when they do it usually has a partner - american Express to help fund it. Hyatt is out there with their new partner MasterCard - which promotion I do love right now and there's Marriott's big promotion which starts on Monday. I thin what you see is what you get from Starwood right now.

beaubo
Randy- Do you think that Air Canada Aeroplan's highly valued NO CAPACITY CONTROLS for Super Elites will continue to survive amidst the program gutting stared earlier this year. And does it make sense for UA 1K, AA ExecPlat, etc,. to offer such no cap controls (even on a limited basis) to its highest tier folks?

Randy Petersen
Traded messages with Rupert from Aeroplan just the other day and it looks like it will survive and I think you'll see a new approach by them for changes in the new year. As for any progrma it's really never a matter of just that membership group - it is also a matter for market conditions. If the industry could return to a more prominent load factor, then things like this is off the table - airlines can sell those seats. What has always been the market protector and pay close attention to this - most members of programs are not all that....shall I say - smart. The industry has closely watched the hotel side of things. So you not think it strange that Starwood has no capacity controls for every member and yet - a big YET, they aren't the fastest growing program, they are the biggest and people still stay loyal to Hilton and Marriott. Redemption may be a big factor to you, but the industry sees different things for different members and if the hotel industry can't make major market chare change, then how can airlines when they are dealing with basically the same customers.

Mikel at WebFlyer
This question was submitted earlier by Iain Webster: I notice from your recent poll that Flyertalkers would be more ready to give up customer service attention than miles. But the MOST expensive benefit airlines give is airport lounge access. There are 5 ways to get this a) fly the right cabin b) Buy it from the airline c) Earn it from the airline d) Buy it from a third party e) Just sneak in! Which of these methods do you advocate as best?

Randy Petersen
this is a trick question, right?

Randy Petersen
I figure it's like my YMCA membership to play basketball..... I guess I could sneak in all the time, but the answer for me for some time has been a mixed bag. I used to pay for it - United RCC, but then I realized that if I were to play the frequent flyer game, I could get it for free so flew Delta to earn the Crowne Room privilege for free and then use it back at United. thus saving some $300 a year. I could use my miles but I put more value on them than what is returned from that redemption. I've even snuck into the Virgin and BA lounges before but never got comfortable. My answer is that i'll try and make my airline loyalty pay it's way and when all else fails for strategy there - it's use my Christmas bonus because there is no doubt in my mind it is worthy of owning one.

doc
Any thoughts on Starwood dropping their latest promo so abruptly?

Randy Petersen
Yea, but my thoughts aren't coming from any specific knowledge I can contribute. I think they had planned it - triple points or triple miles because business was trending so soft. It is rich. But once they realized that business was starting to pick up, they did some intelligence and realized that they were probably too rich. Hyatt is nice but Starwood doesn't really compete solely against them and when they heard that Hilton was dumbing down on this I gave them a shot at thinking they were spending more for the promo than net cost of new business. It was a shocker because o know they had really put a lot of work into it. But, let's remember that the triple points would have always been taken for redemption bonus into miles and they have figured that out by now. next

Mikel at WebFlyer
This question was submitted earlier by The-Longhauler: Dear Randy, SAS Eurobonus is very proud and happy for all their freddie awards incl. Best Elite Level, they are proudly using the freddie award logo on most of their stationary and if talking to them on help desk they are referring to their endless chain of victories..So they seem to have very much respect for this fine award. Couldn't you please invite them for a chat, they will sure participate, I guess most participants in the SAS forum do not always agree with them as being the best program in many ways and would like to address some Questions.

Randy Petersen
Will do, We actually also have had BA from London approach us to host one for them which would be daytime here and Northwest has expressed an interest in us hosting their next one. But with the online audience in Scandinavia, I'm sure it would go over well and their time zone works perfect for us. Goos idea and let me get on it. Thanks for the suggestion.

techgirl
Randy... what is the next step for FlyerTalk? We keep growing... any visions?

Randy Petersen
I'm really fresh out of ideas. It is so huge that it needs to be professionally run and I simply don't have the time. I do know what I would like and please don't read into this - it's just my pipe dreams. When I originally appointed members to the original TalkBoard, our friends in Canada and North Carolina and Seattle and Switzerland really had a superb map for FlyerTalk. It didn't get done and as you know, all that came about right after 9/11 and I don't think many of the members really and truly understood the weight of that time on myself and my business. That map was lost but perhaps we'll see new idea and new volunteers to see it through. If I could only have one wish it would be for a full-time manager of FlyerTalk. I'd love to return to a day when I could use it,. That person would have the time of their life and i'm sure would be rewarded as I have with what it means to be part of other people's lives. For now, I would have to ask those that get so much from it. I'm just but a member and kind of like that. Sorry not a very good answer but the question took me by surprise.

Mikel at WebFlyer
This question was submitted earlier by Luciano: Is it illegal to buy and sell mileage by internet or newspaper? If I am a mileage broker, what risks I am involved?

Randy Petersen
Call the prison guards....

Randy Petersen
The old illegal question. Before all the jailhouse lawyers get in with their take. Formally it is illegal in only the state of Utah. And that is only because Thomas Jefferson and Ben Franklin didn't include it in the original Declaration of (Mileage) Independence. The reason it is not illegal is because unlike speeding, there is no actual law that says you can't. However, it is clearly posted by all programs around the world that buying, selling and bartering is strictly against their rules and I think that makes it pretty much illegal. Now, how can that be? Because every major coupon broker that has been busted has been put out of business by the legal system with out-of-court settlements. So the courts have determined it illegal. As for risks.....clever Mileage Police and that fact that airlines can prove you stole from them....at retail so you give back all your profits and rarely go to jail, but I would not sign a five-year lease on a nice office to get started. Risks? over 92% of brokers are eventually busted and face prosecution... How's that for risk?

MileageAddict
We need to have a House of Miles party! Any chance of having an event - airline and hotel reps present? Perhaps they could offset the cost with their presence?

Randy Petersen
Good question and our illustrious president of the TalkBoard recently wined and dined me at Morton's to push the same thing. I am sold on the idea and even chatted about it with some members while in Las Vegas over the weekend. I have no doubt the industry would show up....along with a few thousand of your fellow FlyerTalkers. Look for this in 2003 in Las Vegas (lots of cheap flights, everyone flys there, etc.) and now we just need a name - The Last Miles, The Big Do (compliments to Catman), Miles & More (compliments to Luftahnsa). I think we have so much talent on FT that there would be plenty of organizers and I'm starting to feel pretty good about the idea. What your idea to call it? thanks for the "bump"

Mikel at WebFlyer
This question was submitted earlier by Irene: Is there a credit card that is giving double (or triple) miles now on savings bond purchases?

Randy Petersen
Only from purchase price and not for the category. As you might know, that category doesn't have the margin of dry goods. You can either choose the United mileage Plus Visa offering double miles right now through the end of the month or various American Express with double and triple miles offers. There's a few threads in MilesBuzz! about savings bonds and I think that crowd has even more suggestions for you. hope this helps.

Sercq
Randy, any advice for a Preferred Gold on US and Premier Exec on UA? Think Chairman's benefits are better on US, but these won't transfer to UA.

Randy Petersen
You are correct in that they won't transfer. I would wait until the new year since i've seen ideas of several ways in which UA and US will work their elute stuff together. Right now too earl to tell but I think if I were already close to Chairmans I know I don't know many if any disappointed members. But I do know a few mad 1Ks.

Randy Petersen
Thanks all, had a usual great time and not just tonight. Thanks for your continued support of FlyerTalk and we'll see you all online...... drive safe.