Upgraded, potentially: Star Alliance in Australia
Somewhat surprisingly, Virgin Blue is rumored to be interested in joining Star Alliance. Such a deal, if real, would likely make a pan-global Virgin alliance moot. So much for that theory. But for Star Alliance fans, a Virgin Blue tie-up would really open up a wide range of Australian destinations.

Upgraded, barely: US Airways lifetime status
US Airways has joined its peers and rolled out a lifetime elite level. One-million miles flown on US Airways flights yields only lowest-tier status, with Star Silver status attached. And it’s not even for life — you have to maintain activity at least every three years to retain the status. Pfft. Other airlines offer a much better deal. (Especially AA, among the US-based airlines, which counts all earned miles, and not just flown miles, when calculating million-miler status.) For a nice rundown of the various airlines’ million-miler options, see the Global Traveller’s breakdown.

Downgraded: Venezuelan humor
Unclear if this is truth or fiction, but a flight attendant was allegedly detained by Venezuelan authorities for announcing the time at the destination as “local Chavez time.” Chavez time? “In December 2007, Venezuela created its own time zone, moving the clock back half an hour on a permanent basis, and according to the U.S. embassy report, ‘the crew member was likely trying to remind passengers of this and to suggest they turn their watches back 30 minutes.’”

Downgraded: Starwood’s top hotels’ redemption options
Gary Leff makes a great point in criticizing Starwood’s outrageous redemption rates for its most expensive hotel rooms. I like the Starwood Preferred Guest program generally, but 100,000 per night for some of those all-suite hotels in locations like French Polynesia? Come on, people.

Upgraded: Star Alliance Africa options
Star Alliance has invited Ethiopian Airlines to join the alliance. This is the third African airline in Star (South African Airways and Egyptair are the others). In the other alliances, SkyTeam has Kenya Airways, and oneworld has… no one. Africa is expected to be a major growth area for air travel — and for economic activity generally — so expect to see further invitations like this within all three alliances.

Upgraded: Las Vegas as a lair for supervillains
In a cross between the laser satellite run by a Las Vegas kingpin in “Diamonds are Forever” and the Death Star’s destruction of the planet Alderaan in “Star Wars,” we now have a Las Vegas hotel that channels the sun’s rays to create a “death ray” of sorts in the middle of the Vegas Strip. Unfortunately (or fortunately?) it’s unintentional… And if you’re a guest at the Vdara Hotel, it could be problematic: “[...] a visitor from Chicago tipped off [the Las Vegas Review-Journal] after having his hair singed, and his plastic shopping bag partially melted, while trying to lounge by the pool.” Here’s a diagram from the paper, via Minyanville:

Downgraded: Southwest Airlines
Southwest keeps acting more and more like a “regular” airline. The company has changed its contract of carriage to brazenly and bizarrely refer to a mechanical delay as an act of God. Deus ex machina? I don’t think so. Lame, and begging for a legal challenge…

Strong: Downgraded: Wegolo
The Netherlands-based discount-airline fare aggregator Wegolo lost a court case to Ryanair, thereby preventing it from scraping Ryanair’s website to include their fares in search results. Ryanair’s beef? Wegolo charged a surtax on the Ryanair fare for booking via the search site.

Downgraded: Star Alliance
After several years of expansion (with the addition of Continental being the biggest deal, from a USA-centric perspective), Star Alliance is losing a member: Shanghai Airlines, which is merging with China Eastern Airlines, is leaving Star Alliance for SkyTeam in October. Within Star Alliance, Air China remains the lone Chinese member airline. Will another Chinese airline join the fray? Maybe the butt-kicking staff at Sichuan Airlines will convince management to get interested in joining the party?…

Upgraded: Hotel ratings
Every year, the J.D. Power survey results come out with some fanfare, rating customer satisfaction with major hotel chains. The top line news is usually the winner in each category. I like to go deeper, and if you’re interested, the full results are here. Somewhat of surprise for me: The more casual Aloft brand beat (but effectively tied) the more established Westin brand within the Starwood franchise.

Downgraded: Mexicana
Upgraded: Repo Men
It’s not looking good for Mexicana Airlines right now. The company has had three aircraft seized by creditors, they are canceling flights, and they are publicly admitting that they are “probably” looking to enter bankruptcy. Points for honesty! If you’ve got tickets already, it’s probably too late to buy travel insurance. If you haven’t bought tickets, it’s probably a bad idea to click “purchase” until you know for sure what’s happening.
UPDATED August 3, 2010: Mexicana has indeed filed for bankruptcy. The airline is cutting back flights, but is still operating.
UPDATED August 5, 2010: Mexicana has now stopped selling further tickets, but is still technically operating. Not exactly a confidence booster to shut down your sales operations, though. Mexicana Click and Mexicana Link, the lower-cost domestic airline subsidiaries, are still operating and selling tickets.

Silver membership in bmi comes in as Star Alliance Silver status.

The value of Silver status varies, depending on the alliance member you’re traveling on. But as Gary points out, that means you’re exempt from checked baggage fees on United, US Airways, and Continental. (Links go to the baggage policy pages.)

The only possible downside: If you’re reserving your tickets with your bmi Silver status, you won’t be able to collect miles with another program, should that be your preference. Your bmi status won’t help much with domestic upgrades, which rely primarily on status with the operating airline.

That said, the bmi program isn’t bad for earning-and-burning miles. At all. (See the earnings charts and the spending charts.)

Check the offer for yourself.

Update: Deal gone. Link dead.

“With our final flight on 24 October, we will leave SkyTeam,” said outgoing Continental CEO Larry Kellner. “We will be in Star just as fast as we can be after that. We just can’t do anything until we get out of SkyTeam to jointly market with Star partners. It won’t be seamless; it will be a couple days in transition.”

Extracting itself from SkyTeam for Continental involves ending loyalty program and airport lounge reciprocity with Air France, Delta, KLM, Northwest and other soon-to-be former allies.

It also requires ending codeshare flights and joint corporate programs. On the former, some code shares with Delta and Northwest already have been discontinued, Kellner said, and “all drop off [by] the end of July.” On the latter, he acknowledged that “we have some joint contracts, but we don’t think that’s a significant risk for us. It’s a very small risk.”

How much time passes between the wind-down of the old partnerships and the initiation of the new ones is another open question.

The transition period may be a bumpy one for Continental loyalists — or for those planning on flying Continental and hoping for benefits via one alliance or the other. Stay tuned.

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Upgraded: Global travel
Downgraded: Swine flu
Good news on the swine flu front: A vaccine for H1N1 should be ready by mid-October. If true, that could have huge implications for the movement of travelers across borders.

Downgraded: Laptops at airports
How many laptops are lost at US airports weekly? 12,000. WEEKLY. And of those, 1200 are at LAX. Most are left behind at security checkpoints. Only a third are ever recovered. That’s horrible, and embarrassing for everyone involved.

Upgraded: Star Alliance
Continental gets the final nod to join Star Alliance. It will be departing SkyTeam.

Upgraded: Upgrades to Hawaii on Continental
Perhaps in the spirit of joining a new alliance, Continental is changing its rules to allow its elite-level OnePass members to upgrade free on flights to Hawaii. Jared Blank has more.

Upgraded: Traveling like a Dolphin
For the person who has everything, and wants to travel a little deeper: A personal submarine based on a dolphin. Promo video below. Bizarre.

Alliances of global airlines — oneworld, Skyteam, and Star Alliance — are under attack. Attached to proposed legislation to upgrade the air traffic control system, a new proposal could be the death knell for the alliances — or at least the end of their legal presence in the United States.

Rep. James Oberstar (D-Minn.), a longtime critic of the alliance system is harnessing unease in Washington D.C. about the competitive impact of international pacts to back a bill that could have a drastic impact on existing and planned airline cooperation.

The chairman of the U.S. congressional committee that oversees airlines is pushing an aviation bill that would automatically withdraw antitrust approval for alliances within three years, although they could be restarted under more stringent rules.

The bill is attached to a $70 billion proposal to modernize the creaking U.S. air traffic control system, which gives it a greater chance of becoming law.

Its provisions could lead to the rolling back of the antitrust immunity, or ATI, already in effect for members of the Star and SkyTeam alliances. It could also derail efforts to expand these groupings and extend immunity to members of Oneworld, the smallest of the three.

Remember that Oberstar is the same legislator trying to block liberalization of airline ownership rules. I would argue that alliances would never have become necessary if nations — like the US — had more reasonable cross-border ownership rules. The alliances are a way to give the companies backdoor merger benefits (e.g., “revenue sharing” on trans-Atlantic routes) alongside the efficiencies that come with aligned schedules.

So what happens if alliances are declared a monopoly in the US, or elsewhere? Frankly, it could be a good thing for passengers, as long as codesharing isn’t entirely eliminated in the process. Alliances may have benefited travelers where schedule alignment and frequent flyer partnerships are concerned, but they’re legal oligopolies. They admit as much: That’s why they require antitrust immunity in order to function.

If airline alliances were to disappear, international passengers would likely see some inconvenience at first. But how much inconvenience? Global lounge access? Priority tags on your luggage? Really, what would change? And for how long? Over time, airlines would negotiate bilateral partnerships in lieu of broad alliances.

And what about the upside? As it stands, alliances are essentially a legalized price-fixing scheme. They’ve always been for the convenience of the airlines, not the passenger. So eliminating price fixing sounds like an easy win for the consumer.

Oberstar may be wrongheaded with his advocacy of protectionism, but he may be onto something with regard to alliances.

Unable to find agreement to merge (thankfully), Continental and United have announced plans to partner, with Continental joining the Star Alliance in 2009, subject to regulatory approvals. With alliances being mutually exclusive, that means the SkyTeam alliance, with Delta and Northwest anchoring the North American members, will lose a major player.

In an e-mail to Mileage Plus members, United is pitching this as a benefit to frequent flyers, with an increase in mileage (and status) earning opportunities. Codesharing would commence upon approval, and Continental would align its schedule to coincide with United and Lufthansa, the two anchors of the alliance.

For frequent flyers in the two programs, there are questions that arise: United is pitching the reciprocity angle, where you receive and accrue benefits in either program, but Continental and United have very different programs, especially in terms of how status miles collect (where you buy the fare matters to CO, not to UA) and how upgrades are obtained (“unlimited” on CO, based on status, vs. certificate-based on UA).

And then there’s this: “Internationally, Continental and United will establish joint ventures that will allow us to cooperate with each other and with other Star Alliance airlines throughout the world.” Will these “joint ventures” be a new airline, like British Airways’ OpenSkies?

Stay tuned. Either way, changes afoot.

Upgraded: JetBlue joining Star Alliance?
German carrier Lufthansa bought a 19% stake in JetBlue, a $300 million investment in the original luxe discount carrier. There’s no talk of merger, or even alliance. Yet. But the companies Lufthansa invests in have the tendency to join Star Alliance.

Upgraded: Star Alliance, again
So JetBlue’s membership is pure speculation. But Star Alliance *did* invite Air India into the alliance for eventual membership. And just yesterday, Air China and Shanghai Airlines officially joined the alliance.

Upgraded: Silverjet, at Maxjet’s expense
Maxjet’s woes, Silverjet’s joy? “Silverjet, which operates all-business-class flights from London to New York and Dubai, said that through Tuesday, the carrier had seen a 20 percent surge in bookings since MAXjet’s announcement.”

Upgraded: Planepooling
With a major treaty to be signed in Lisbon, some EU member states’ prime ministers are flying there together, carpool style, in an effort to reduce their carbon footprint. (Thanks, Dr. Vino!)

Upgraded: Editors’ hateful laziness
Who came up with this headline? “French rude and their hotels smell.” Top shelf editorial work, team!

Downgraded: Traveler’s IQ, and traveler’s brain cells
If you packed a one-liter bottle of vodka in your carry-on, and airport security says you can’t take it onboard, what would you do? If you said, “Open the bottle and chug the entire contents before going through the metal detector,” then you might be the now-hospitalized 64-year old resident of Dresden, Germany who proved he couldn’t hold his liquor at the Nuremberg airport. He should have just checked the booze.

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I’ve been encountering US Airways a bit lately, and it hasn’t always been fun. A function of my recent move to North Carolina, perhaps. Hard to avoid US Airways in these parts. But having previously observed that United-US Airways codesharing and cooperation aren’t living up to their hype, I’m still convinced that these two Star Alliance partners aren’t working well together, and need to shape up their cooperation.

The breakdown of cooperation starts with the little things, right at the time of purchase: Why can’t the US Airways website allow me to enter my United frequent flyer number in the reservation? They’re both in Star Alliance, and other Star Alliance carriers let you choose from a range of different frequent flyer options.

Update: The option to add other airlines’ frequent flyer numbers is back on the US Airways site. Not sure what was missing when I booked, but it’s there now. Yay!

Admittedly, other sites have similar issues, especially third party booking sites — Orbitz, I’m looking at you. I bought a ticket on Orbitz recently when no one else would sell me that particular itinerary at a lower price. Again, no option to enter a partner airline’s frequent flyer account. I could enter a US Airways account number, or nothing at all. This limitation isn’t isolated to Star Alliance, either. If you, say, book a British Airways ticket, you can only enter a British Airways frequent flyer number, and not an American Airlines number. (Expedia is much more flexible with frequent flyer accounts.) Alliances and partnerships aren’t new, people! Give us the option!

The cooperation breakdown continues at check-in: My wife bought a United-coded ticket for an all-US Airways flight on United.com (the UA-coded ticket was cheaper) but when she got to the airport to check in, she was told that the ticket wasn’t paid for. Apparently, United hadn’t transmitted the funds to US Airways, and the ticket was still listed as reserved, not issued. Her United receipt (and credit card statement) showed that it was indeed paid, but until the ticket number was manually entered into the computer record, she wasn’t getting a boarding pass.

This is stupid. I know there are incredible complexities that arise when large organizations attempt to integrate or link their data systems, but if the increasing frequency of these kinks is any indication, the problems are getting worse with time, not better.

Related:
- Star Alliance out of alignment: Are United and US Airways fighting codeshare wars?
- Update: US Airways and United codeshare conundrums
- Confused by codeshares? Sue!

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