US Airways reduces the value of frequent flyer programs further with their latest policy change. Here’s the official statement of the changes to the US Airways Dividend Miles program:
Accrual
Tickets purchased on/after March 1, 2008 for travel on US Airways on/after May 1, 2008 will earn the actual number of miles flown and will no longer earn a minimum of 500 miles per segment.
Tickets flown on partner airlines after May 1, 2008 will earn the actual number of miles flown.
Tickets purchased prior to March 1, 2008 will continue to earn the 500 mile minimum for travel after May 1, 2008. Accrual on flight segments greater than 500 miles in length are not impacted by this change.Redemption
Members redeeming miles for award travel online within 14-days of departure will be assessed a quick ticketing fee of $50 per ticket.
A quick ticketing fee of $75 per award ticket will continue to apply for award tickets purchased from US Airways Reservations. Chairman’s and Platinum Preferred members booking within 14-days (both online and by phone) are exempt from the fee.
The “quick-ticketing fee” is not an innovation. American has been doing it for years, and United followed suit just over a year ago. It’s obnoxious, and purely a cash-grab with no sensible justification, but it’s not a new idea.
What IS a new idea is the elimination of the minimum mileage for short flights. Until now, travelers on short hops were able to console themselves with the knowledge that they’d at least get a few miles for their trouble. This will make earning elite status harder, too. (Which might be a corporate goal.)
What remains to be seen is if when other airlines will follow suit and eliminate the minimum mileage earned.
Another unknown at this point: how US Airways’ partner airlines will credit US Airways flights. For example, US Airways flights can accrue miles in a United Mileage Plus account. As of this morning, this page on United’s website still lists a 500-mile minimum accrual rate for US Airways flights credit to Mileage Plus. I’m just waiting for the other shoe to drop.
Yay. Aren’t these programs fun?
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February 14th, 2008 at 8:21 am
Asiana, for example, has not given US Airways points with a 500 mile minimum for a number of years.
February 14th, 2008 at 5:13 pm
It’s exactly this sort of nonsense that makes me glad I switched in early 2007 to crediting all US flights to my UAL account. My US Silver status (earned in 2006) expires in 2 weeks, but I earned Preferred on UAL last year.
One important point here, though: this change by US will obviously cut into accumulation of redeemable miles and/or mileage earned toward status (at least on US), but taking that gratuitous connection thru CLT instead a non-stop will still get you an extra segment. If that’s how you earn/maintain your elite status, this isn’t a total disaster. (No, it’s just a 95% disaster.)
One other thought: hasn’t the justification for the 500-mile minimum been, in effect, that the airline is rewarding travelers for helping them load-balance (by connecting through hubs) instead of taking nonstops? One has to wonder what the economic costs here are, separate from the (temporary?) competitive disadvantage vis-a-vis other carriers’ FF programs.
February 14th, 2008 at 7:44 pm
As soon as I got this stupid email from USAir I sent a complaint. I hope I’m not in the minority and that they are getting flooded with emails. I also plan to mention it the next time I check in and when board for flights. I think everyone at the airline has to hear from their loyal customers. I’m “just” a Silver (36 segments last year and already 12 segments this year) and I’ve seen them move to smaller jets, less service in terminals and planes that are not cleaned or maintained well inside. The service on USAir continues to decline. I’ve seen more odd flight cancellations recently. It makes you wonder. I live in Charlotte, so I’m pretty much captive. But there are choices. To charge people extra for trying to use the miles they’ve earned is penalizing their best customers. That move has nothing to do with the cost of fuel. And, they already have high ticket prices and have added fuel surcharges. Frequent Flyers are already paying for these fuel costs. This is a nickel and dime approach from a nickel and dime airline.
February 14th, 2008 at 8:26 pm
Will this lead to less short-flight trafic from smaller airports to hubs? Or will most people not really care (or notice)?
Are smaller airports the losers here?
February 16th, 2008 at 7:33 pm
Members of their so-called loyaltry program are the losers. Nothing new here, right?
Claire @ http://travel-babel.blogspot.com
February 22nd, 2008 at 11:20 am
I don’t know where my company’s travel administrator gets her information, but the travel newsletter that she issued today had the following blurb from United regarding earning United miles on US Airways flights:
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