Domestic
Elites Status Party Over at US Airways?
US 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.
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