MGM-American Airlines deal praised

The MGM Grand hotel-casino will link its slot machine club to American Airlines' frequent-flier club in an unprecedented marketing agreement between an airline and a casino.

The five-year exclusive agreement, announced today by MGM Grand, will give the hotel marketing access to more than 32 million members of American's AAdvantage frequent-flier program and another 30 million people who have AAdvantage Visa or MasterCard credit cards.

The AAdvantage Visa and MasterCards award customers with frequent-flier miles with each credit card transaction.

"It's a great tie-in," said Terry Trippler, publisher of Airfare-Report.com, Inc., a magazine and Internet Web site that reports on airfares, frequent flier programs and other promotions. "Is this the first time you don't lose when you go to Vegas?"

"It's a brilliant move on American's part," said Trippler. "And, it should give the MGM a tremendous amount of publicity from American."

Trippler said there were reports that American was on the verge of offering a promotion in Las Vegas, but even he was surprised by the tie-in with the slot club.

"It's a trend of things to come," Trippler said. "Airlines are looking at remarkable ways to tie in with various entities. They've done things with grocery stores and movie theaters. But this is the first time they've tied in with a casino."

The new program, which takes effect June 15, allows members of the hotel's Directors Club to earn frequent-flier mileage through the AAdvantage program with slot and video poker play, guest stays at the hotel and by purchasing tickets to MGM's production show, "EFX."

Under terms of the agreement, one AAdvantage mile will be earned for every two Directors Club points earned.

In addition, each hotel night stay will earn 500 mile points and customers who purchase tickets to "EFX" will earn 250 mile points per ticket.

On the reciprocal end of the agreement beginning July 15, AAdvantage members will be able to stay at the MGM Grand for 15,000 miles.

Greg Saunders, senior vice president of hotel operations at the MGM Grand, said Directors Club members who want to take advantage of the program must enroll in the AAdvantage program. Directors Club members who already have a membership in AAdvantage must give their membership number to the slot club to coordinate point awards.

"We're very excited about having access to the 32 million AAdvantage members and nearly that many carrying Citibank (credit) cards," Saunders said.

Bill Dreslin, a spokesman for American, said AAdvantage is the most popular frequent-flier program in the world.

"There are a couple thousand companies that have promotional tie-ins," Dreslin said. "We have car dealerships that award mileage for test-driving a vehicle and supermarkets that give mileage for store purchases. On the credit cards, users get a mile for every dollar they charge in their transactions."

The airline offers free travel on American and some of its airline partners for every 25,000 miles accumulated. It also offers class upgrades for 15,000 miles.

"This important new partnership with American Airlines adds another dimension to the customer's experience," MGM Grand hotel-casino President Dan Wade said in a release announcing the program. "This alliance compliments our existing marriage with Marriott hotel services, reinforcing the power of global branding among the leaders in the travel industry."

"AAdvantage members will be winners with this program that offers exciting new ways to earn miles while enjoying all that MGM Grand has to offer," Bruce Chemel, president of the American Airlines AAdvantage marketing division, said in the release.

American is the No. 6 carrier by passenger volume at McCarran International Airport. A McCarran spokesman said today that American averages about 10 flights a day though McCarran, serving Chicago's O'Hare International Airport and the Dallas-Fort Worth International Airport with direct service.

American will be one of the new residents of the new D Concourse gates when they open next month. The company flies twin-engine MD-80 jets exclusively in Las Vegas, a plane with a capacity of about 135.

Chicago and Dallas are hub cities for the nation's second-largest airline, which serves 96 U.S. destinations and 203 worldwide. American is heavily involved in code-sharing and other marketing agreements with other airlines, car rental agencies, hotels and theme parks. One of its partners is Reno Air, the No. 5 carrier at McCarran and a company that is attempting to build a stronger presence in Las Vegas.

It also is a sister company to American Eagle, which serves several small communities as a commuter airline.

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