Passengers Win and Lose in Airline Alliance Game

The last time this column looked in on the not-so-divine comedy that is the airline alliance game, the season was fall, and the air was abuzz with a new opportunity for domestic travelers: the chance to earn miles on one major U.S. airline, then apply them toward a free flight on a second U.S. airline.

In a competitive rush, six of the country’s largest carriers paired off into three alliances. By late August, American and US Airways were newlyweds, United and Delta were on the eve of strolling up the aisle and Continental and Northwest were nearing their eighth month of engagement, wedding date still unannounced.

And what now of these wide-bodied, alliance-mad lovers?

American and US Airways remain together. United and Delta have exchanged rings, but their relationship remains more shallow than first was pledged. Continental and Northwest, on the other hand, have not only gotten together at last, but have drawn so close that some authorities would like to douse them with cold water.

In all three cases, the coupled airlines pledged that this cooperation would not just boost profits but bring many benefits for consumers. (The carriers have also rushed to ally themselves with foreign carriers.) Meanwhile, many passengers are still scratching their heads over what these new deals do and don’t mean.

Here’s the bottom line: Though your choices in the U.S. airline marketplace may well narrow, it should be easier now to accumulate mileage credits on your favorite carrier.

The tricky part is that accumulating miles is not the same as redeeming them. The airlines have made it easier to gather up piles of miles, but there aren’t any more seats on planes out there than there were before.

So it’s more important than ever to plan a mileage-award trip far ahead (especially to high-demand destinations like Hawaii), leave yourself room to maneuver on dates and double-check what these airline alliances will and won’t do for you.

Does one of the three alliances stand head and shoulders above the others? Not really. Continental’s OnePass frequent-flier program wins many polls among seasoned travelers, and the Consumer Reports Travel Letter labels the American-US Airways program “the most limited of the three.” But your choice of airlines should include plenty of other factors, including where you’re going and where most of your miles are stockpiled.

Here, gleaned from half a dozen service centers, is an alliance-by-alliance update, with telephone numbers for airline frequent-flier service centers:

American (AAdvantage, telephone [800] 882-8880) and US Airways (Dividend Miles, tel. [800] 872-4738). These two began allowing AAdvantage and Dividend Miles program members to claim awards for travel on both airlines on Aug. 1, and three weeks later began allowing travelers to pool their mileage from the two frequent-flier programs in order to claim award travel on either one. One catch: Pooled miles can be used for domestic or foreign travel on American or US Airways, but not on the carriers’ nearly three dozen other partners. The two have also granted reciprocal airport lounge access since August.

(It’s been a busy winter at American, which bought regional carrier Reno Air in late 1998 and then had to cancel hundreds of flights in early February amid a pilots’ sickout over a labor dispute.)

United (Mileage Plus, tel. [800] 421-4655) and Delta (SkyMiles, tel. [800] 323-2323). This alliance was first advertised as a combination of reciprocal frequent-flier miles and code-sharing--which basically allows airline A to advertise and sell airline B’s flights as its own. Much of the deal did go through, including the joint frequent-flier benefits (although this alliance doesn’t allow passengers to swap miles earned on international flights, or to combine Delta and United miles in order to claim an award). But Delta’s pilots resisted the code-sharing, and the airlines dropped it.

The airlines have also tinkered with other program details to make their offerings dovetail: For instance, WorldPerks mileage credits that were formerly set to expire on Dec. 31, 1998, or Dec. 31, 1999, will remain valid.

Continental (OnePass, tel. [713] 952-1630) and Northwest (WorldPerks, tel. [800] 447-3757). Since Dec. 6, Northwest’s frequent fliers have been able to earn miles on Continental’s program and vice versa, and lounge privileges are reciprocal. The airlines started taking bookings for awards earned that way on Feb. 1, for travel beginning on or after March 1. The reciprocity works on U.S. and foreign flights, and (unlike the two other alliances) this pact allows travelers to apply mileage earned on one airline toward elite status on the other.

But this alliance goes far beyond that. In October, Northwest announced plans to buy a controlling interest in Continental. Alarmed by that move’s anti-competitive possibilities, the U.S. Justice Department filed suit (still pending) to block it. The department’s antitrust chief warned that the deal would bring higher fares and worse service for more than 4 million passengers who fly annually on routes dominated by those two carriers.

Another part of this marriage is code-sharing. Thanks to a Continental-Northwest pact to cooperate on scheduling and sales of about 850 flights to 95 destinations, begun in early January, travel agents’ computerized reservation systems and Internet booking services now show that Continental has added 400 flights (actually flown by Northwest) and that Northwest has added 450 (actually flown by Continental).

Many consumer advocates argue that code-sharing is deceptive and anti-competitive while yielding relatively minor benefits for travelers. The airlines say it simplifies connections and scheduling.

And last week, the U.S. Department of Transportation fined Northwest $45,000 and Delta $25,000 for not telling travelers that part of their trip would be on another carrier. The DOT said it was boosting its study of joint service agreements now that more airlines are trying to set up various alliances.

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Christopher Reynolds welcomes comments and suggestions, but cannot respond individually to letters and calls. Write Travel Insider, Los Angeles Times, Times Mirror Square, Los Angeles 90053, or send e-mail to [email protected].