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Members Only: Northwest, Midwest Expand Codeshare, FF Cooperation

By Jay Boehmer / September 23, 2007 / Contact Reporter
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Northwest Airlines and Midwest Airlines in November expect to implement a codeshare agreement, adding "250 citypairs and more than 1,000 new flight options" to customers of both carriers. Private equity firm TPG, backed in part by Northwest, last month announced an acquisition of Midwest, expected to close in the fourth quarter (BTNonline, Aug. 17). The two carriers last year entered into a reciprocal frequent flyer relationship and earlier this year signed a "memorandum of understanding," paving the way for the broadened codeshare agreement. "Passengers can book their entire flight on a single ticket, with all segments earning mileage credit in either the Midwest Miles or Northwest WorldPerks frequent flyer programs," the carriers said in a statement. "We're very pleased to be able to offer customers of both airlines a wider choice of travel destinations," said Scott Dickson, Midwest Airlines senior vice president and chief marketing officer. "The convenience of a single ticket transaction and the ability to earn miles in the customer's choice of award programs make this a win-win for everyone." The carriers said travelers beginning Nov. 3 could book codeshare flights for travel on or after Nov. 17. The carriers said it would phase in the program, beginning with flights between Milwaukee, Kansas City and Omaha and cities on the West Coast.

American Express Adds AA To Lounge Access Program
American Express last month added American Airlines' Admirals Club access as part of its Airport Club Access Program for Platinum corporate cardholders. American Airlines joins Continental, Delta and Northwest as program participants. The agreement allows cardholders to access more than 40 Admiral Clubs around the world, and brings the total number of participating clubs to more than 125. Travelers must present an Amex Platinum card and ticket on the corresponding airlines valid for the day of travel to access the clubs, noting that spouses, children or "up to two traveling companions" also can gain lounge access.

Frequent Flyer Fraud Grows At Airlines
Frequent flyer abuses have risen to the top of the most common fraud activities that airlines face, according to a survey released this year by Deloitte. According to finance directors and internal auditors at nearly 180 global airlines, frequent flyer abusers—including airline employees who funnel miles to friends or relatives—moved to the top in 2006, followed by inventory theft and cargo theft. In a similar 2000 survey, frequent flyer abuse was not even in respondents' top three. "Our latest survey shows that cargo theft is still a common problem, but inventory theft and frequent flyer abuse have become more pervasive. This latter abuse is of real concern, because although it is often suspected and eats away at revenue, it is harder to prove," the study notes.

Buyers: Southwest FF Upgrade Could Spur Use
Southwest Airlines remains mum on proposed changes to its frequent flyer program, with an overhaul expected in the fourth quarter, but 59 percent of 107 corporate travel buyers in a UBS survey said that loyalty program improvements are very or somewhat important in driving increased spending to Southwest. Frequent flyer program changes are one of several Southwest initiatives in a growing courtship with the corporate travel market. The carrier earlier this year inaugurated limited participation in the Galileo global distribution system and alluded to further such penetration and potential new onboard amenities, such as Wi-Fi (BTN, July 9). Eighty percent of the respondents said GDS participation is a very important factor in driving more business to the carrier, and an additional 13 percent said participation is somewhat important. "Southwest ranks third in terms of total domestic revenue, behind only American and United, but nearly 50 percent of the corporate travel managers we surveyed said Southwest ranks sixth or below in terms of their firm's domestic spend," the survey said. Although Southwest would not give details of the altered frequent traveler program, a spokesperson said, "We have a focus on that, and there's a great opportunity there. We do want to be able to keep the field open and consider all the different possibilities to make it relevant and useful."

Air France, KLM Launch Award Calculator
Air France and KLM this summer launched an online mile award calendar powered by Amadeus, allowing frequent flyers to gauge availability for award travel. If desired dates for redemption are not available, "a two-month calendar display highlights alternative options." Air France e-business director Jean-Michel Mathieu said the feature quickly increased the number of online award bookings. The carriers also said they plan to further redemption options with other SkyTeam alliance partners.
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