Domestic
US Airways' Dividend Miles Program to Give Less Dividend, Fewer Miles
In a news release issued late last week, US Airways' Dividend Miles Program announced two policy changes: One will make it more difficult to accrue miles, the other will make it more costly to redeem them. As a result, all the rewards of the program - free seats, Business Class upgrades, First Class upgrades—are farther out of reach and more expensive.
Fewer Miles: According to the release, tickets purchased on or after March 1, for travel on or after May 1, will earn the actual number of miles flown, and will no longer earn a minimum of 500 miles per segment. At first glance this might appear to be a minor cutback, but the US Airways accounting department knows better. For business flyers who regularly take short hops several times a week, the new policy can trim their mileage accrual 80% or more. And should you think that getting credit for actual miles flown is “only fair,” bear in mind that the ticket price for a short flight is generally much higher per mile than a trans-continental flight.
Less Dividend: On the redemption side of the program, the US Airways release states, “members redeeming miles for award travel online within 14-days of departure will be assessed a quick ticketing fee of $50 per ticket.” Arranging that travel by phone will incur a $75 charge. The term “quick ticketing fee” in standard Engligh translates to “extra profit at no additional expense.” This would be a greater affront if more award seats were actually available within 14 days of travel.
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Chairman's and Platinum Preferred members of the US Airways Dividend Miles Program are exempt from the fee. For now.
US Airways has shown some daring with these new policies, which clearly benefit nobody but those whose livelihood is based on the airline's profit margin. And knowing the tendencies of birds of a feather, you can expect other US carriers to follow suit in short order.
Look for further coverage of changes to the US Airways Dividend Miles Program in the March issue of First Class Flyer.
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