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Add to del.icio.usUS Airways’ balance sheet is apparently showing so much red ink that the carrier is implementing a “new business model,” detailed in a recent press release today. Among the drastic, cost-cutting measures listed therein is one that hits the premium traveler especially hard: bonus miles for preferred-status Dividend Miles members are being eliminated.
For tickets booked on or after Aug. 6, 2008, the 25% to 100% miles match enjoyed by members in the four Dividend Miles elite-status levels will cease to exist; the miles flown will be the miles earned. That date will also see the introduction of a new $25 to $50 processing fee for every award ticket.
Airlines can be very creative when it comes to avoiding the payout part of a loyalty program. Last week, American Airlines took a traditional approach and hiked the mileage requirement for an award ticket. US Airways’ maneuver has a similar effect, but targets frequent buyers. Ill-advised or inspired? Check out July’s First Class Flyer for a closer look.
As a Chairman's Preferred member for many years with USAirways, this action is a real insult to their frequent and elite travelers. This action will certainly make me re-think which airlines I am flying going forward. USAirways should have thought of the consequences when taking away privileges mid-year from their most loyal flyers.
I am disappointed to see all these fees and changes from USAirways. Why not just the raise the fee of my ticket? So if the elite mileage bonus is going away, will the award thresholds comes down too? Also, the XNL fees and booking fees on an international ticket are just not worth using US miles. I fly US for the free upgrades. If that ever gets taken away, then I am through with them period. But until that point, I will put up with the program changes. But, it would be nice to pay a "drink fee" in advance so I do not have to whip out $3 in cash every time I want a Cran-Apple Juice or Water en-route from Phoenix to JFK or FLL.
I did the USAirways elite challenge for which I paid several hundred bucks in Jan 08. The decision was partly based on bonus miles I would earn as an elite member. My year is only half over. Isn't this false advertising for a service I purchased?
As is the case for many of us who have stuck with US Air my primary motivation for obtaining gold status is the upgrade possibilities. I think the airline is ill advised to continue the gradual degrading of perks associated with elite status since lossing the loyalty of frequent flyers couldn't help but exasperate bottom-line issues. I really wish management was more creative in its approach to the current climate, perhaps more emphasis on attracting customers dissatified with the tact being followed by other carriers, i.e., more nickle and dime charges, etc., rather than following a 'herd mentality' i.e., I bet I can charge for more items than you can. Further tampering with elite program perks will certainly compel me to rethink my continued use of US Air.
Djohnson brings up a great point! They should give us more, like free drinks, water and reinstate the bonus miles. This could be a great marketing tool to rub in other airlines faces. I have been chairman since 2000, but, Since they stopped giving bonus mile I stopped looking at US airline first when booking travel. It’s just not worth all the Hassel.
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