Frequent-Flier Program to Offer Online Deals

MINNEAPOLIS —  Frequent fliers on six major airlines may exchange the miles they earn for discounts on goods and services from more than 100 online merchants under a program announced Tuesday.

MilePoint.com, which is launching the program, said Delta Air Lines, Northwest Airlines, Continental Airlines, US Airways, America West and TWA are the initial airlines that have committed to participate, along with Hilton HHonors Worldwide, Hilton Hotels’ loyalty program.

More than 45 million people are members of those loyalty programs and have accrued an estimated 1.6 trillion miles and points, MilePoint said.

MilePoint is working with online retailing giant Amazon.com and SkyMall. Under the program, MilePoint Money may be used to buy gift certificates for partial payment on items from Amazon.com and more than 100 SkyMall retailers, including Sharper Image, Orvis, Wine Enthusiast, Hammacher Schlemmer and Frontgate.

The Web site, https://www.milepoint.com, is accessible to frequent fliers who want to find out more about becoming a MilePoint member and to online retailers who want to determine what is required to become a participating merchant.

“Airlines and hotels have been looking for new ways to create more value for their customers’ accumulated miles. By turning miles and points into online money, we will literally release billions of dollars of purchasing power into the online marketplace,” said Bob Crandall, chairman of MilePoint’s board of advisors and former chairman and chief executive of American Airlines.

“This is the natural and logical evolution of the current frequent-flier programs,” Crandall said.

Under the program, each frequent-flier mile will be converted into 2 cents in MilePoint Money, the same value the industry in general places on frequent-flier miles. That equals more than $32 billion in online purchasing power from the current audience of more than 45 million people.

Mark Lacek, MilePoint’s chief executive and co-founder, said 74% of frequent fliers have access to the Internet and 88% of them shop online.

When buying from a MilePoint merchant through the MilePoint site, members can apply their MilePoint Money as partial payment toward their purchase during check-out. MilePoint said the average merchant would allow 10% of the purchase price to be paid for with converted miles, and some would allow 25% or more.

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Sluggish Skies

Transportation Department data confirmed what most travelers already knew: June was a miserable month for flight delays.

Air carriers posted a 66.3% on-time arrival record, down from 74.3% in May and 70.9% recorded in June 1999. The worst performer was United Airlines, which had a labor dispute and other problems.

Source: Associated Press