New Frequent Flyer Program Announced

[ringmaruf]

AMERICA WEST AND US AIRWAYS ANNOUNCE CHANGES TO EXPANDED FREQUENT FLYER PROGRAMS
Loyalty programs now include network reach of America West and US Airways, will fully combine into one Dividend Miles program in Spring 2006
PHOENIX, Sept. 26, 2005 -- America West (NYSE: AWA) and US Airways today announced details of immediate changes to their joint frequent flyer programs, FlightFund and Dividend Miles, resulting from the merger between US Airways and America West. A new program, which will launch in spring of 2006, will retain the name Dividend Miles. Members of FlightFund, the America West frequent flyer program, and Dividend Miles, the frequent flyer program for US Airways, will be able to redeem and earn miles on flights operated by either airline beginning Oct. 5, and their outstanding mileage balance will be automatically combined and integrated into the new Dividend Miles program in spring of 2006.

"By combining America West’s award-winning FlightFund and Elite program with the worldwide reach of US Airways and the Star Alliance, we believe that we have created the best frequent flyer program in the nation for our customers," said Scott Kirby, executive vice president, sales and marketing. "As a low-cost carrier with nationwide and international service, US Airways offers what may be the only frequent flyer program that our customers will ever need."

Beginning Oct. 5, Dividend Miles and FlightFund members will be able to earn and redeem miles to any destination served by America West or US Airways. Additional Dividend Miles and FlightFund highlights include:

A 500-mile bonus for booking online at either americawest.com or usairways.com

No more Saturday-night stay requirement for Dividend Miles awards

A single worldwide award chart with award travel beginning at 25,000 miles:

Roundtrip award destinations One Coach-Class Award One First-Class or Business-Class Award
Within and between the continental US and Canada Mileage Saver: 25,000
Premium: 50,000 Mileage Saver: 50,000
Premium: 100,000
Between the continental US or Canada and the Caribbean, Central America or Mexico Mileage Saver: 30,000
Premium: 60,000 Mileage Saver: 60,000
Premium: 120,000
Between North America* and Hawaii Mileage Saver: 35,000
Premium: 70,000 Mileage Saver: 70,000
Premium: 140,000
Between North America* or Hawaii and Europe Mileage Saver: 50,000
Premium: 100,000 Mileage Saver: 80,000
Premium: 160,000

*North America includes the continental US, Canada, the Caribbean, Central America or Mexico.

In order to be able to provide members with the greatest number of award seats possible, and also due to the merged airline’s expanded route network, the America West short-haul award and the usairways.com awards have been replaced by a single, worldwide redemption chart with travel beginning at 25,000 miles.

For additional information on the new Dividend Miles program including award-travel charts, please visit www.usairwaysinfo.com and click on the Frequent Flyer section.

For FlightFund Elite and Dividend Miles Preferred Members, a new Preferred Program:

Beginning Oct. 5, Preferred and Elite members in either FlightFund or Dividend Miles may receive complimentary first-class upgrades on eligible flights operated by both US Airways and America West.

Miles and segments flown on flights operated by both America West and US Airways for all of 2005 will count toward Preferred or Elite status

America West Platinum Elite members will be elevated to Chairman’s Elite status through February 28, 2006.

Preferred and Elite programs combine the best of advance upgrade options from both programs by retaining the Dividend Miles seven-day window for Chairman’s Preferred level and the FlightFund two-day window for the Silver Preferred level:

Qualifications and benefits Silver Preferred/Elite Gold Preferred/Elite Platinum Preferred/Elite Chairman's Preferred/Elite
Unlimited upgrades to First Class in North America, Latin America or the Caribbean Confirm anytime on Full Coach or 2 days before departure on other fares Confirm anytime on Full Coach or 3 days before departure on other fares Confirm anytime on Full Coach or 4 days before departure on other fares Confirm anytime in advance on Full Coach or 7 days before departure on other fares
2006 Preferred Qualifying Miles 25,000 50,000 75,000 100,000
2006 Preferred Qualifying Segments 30 60 90 120
Preferred Flight Bonus 25% 50%* 75%* 100%
Unlimited Preferred Upgrades Yes Yes Yes Yes
Private Connections Reservation Service Yes Yes Yes Chairman's Preferred Liaison Desk*
Priority Check-in and Boarding Yes Yes Yes Yes
Preferred Seating on US Airways Yes Yes Yes Yes
Blackout Dates No No No No
Preferred Seating Yes Yes Yes Yes
Priority Standby Yes Yes Yes Highest priority

Benefits listed begin Oct. 5 unless otherwise indicated
*Benefits effective early 2006
Benefits are subject to change at the discretion of US Airways.

US Airways and America West have joined together to create the fifth largest domestic airline. US Airways, US Airways Shuttle and the US Airways Express operate approximately 4,000 flights per day and serve more than 225 communities in the U.S., Canada, Europe, the Caribbean and Latin America. This press release and additional information on US Airways can be accessed at www.usairways.com or www.americawest.com.

US Airways is a member of the Star Alliance, which was established in 1997 as the first truly global airline alliance to offer customers global reach and a smooth travel experience. The other members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, TAP Portugal, Thai Airways International, United and VARIG Brazilian Airlines. South African Airways and SWISS will be integrated during the course of the next 12 months. Overall, the member carriers offer more than 15,000 daily flights to 795 destinations in 139 countries. (AWAG)

 

[drifterreno]

Ring--that was fast--they just started sending out the blast this am--I didn't even have a chance to let the cockroaches know.

 

[ringmaruf]

I'll summarize the changes since many of the employees probably don't pay much attention to this.

Keeps the Dividend Miles name. Good, it's classy sounding.

The miles needed to redeem awards has stayed about the same. US used to offer 20,000 mile off-peak coach and 40,000 mile off-peak Full-Y awards that were really the best things in the industry, they were great, but they've been taken away. Just doing what everyone else did, so I can't get too upset.

They did remove the Saturday-night stay requirement from the 25,000 mile coach awards. This is pretty terrific, for me anyway.

They lowered the online booking bonus from 1,000 miles to 500. This doesn't really affect me, but it's I think a little surprising, seeing as how they want to encourage people to use the website.

All the changes go into effect October 5, which is when US people can earn/redeem miles on HP flights and vice versa. I think it's great they can get the systems to work together that quickly, definitely a good job there. The programs will be completely merged early next year.

They created a new elite level. Silver and Gold stay where they were, but they added a new Platinum at 75,000 miles or 90 segments. Chairman's got pushed up to 100,000 miles or 120 segments. (On a personal selfish note, this really sucks. 100 segments was hard enough, I can't imagine I'll be able to make the 120 for US1 now. Oh well. Better practice my spanish to deal with res.) They also slashed the mileage bonuses for all the levels except US1.

I'm not at all familiar with the HP program now, so I can't really say if the new program takes things mostly from US, mostly from HP, or is completely new. I'd lean towards completely new, though.

Only 35,000 miles to Hawaii. They'd better capacity-control the heck out of the X bucket on those flights if they want to make some money. Oooh, better idea, I'll just call res in MNL and have them book my RTFC in full-Y.

Also, on the usairways.com front page, US is offering bonus miles for taking HP flights by the end of the year. 500 miles per flight, up to a max of 15,000. Was to be expected, not particularly generous, but better than nothing.

Still don't appear to have posted a new chart for Envoy upgrade awards. I'll be interested to see just how stingy they're going to be. Can't be much worse than how they've already gotten the last few years.

I think that's about it. There's nothing really awful about these changes for the pax, just a couple mildly lousy things. Nothing that jumps out as being really great, though, which is a shame--I think they could've done better to make a bigger splash.

 

[ringmaruf]

Also, on the usairways.com front page, US is offering bonus miles for taking HP flights by the end of the year.  500 miles per flight, up to a max of 15,000.  Was to be expected, not particularly generous, but better than nothing.

[post="305708"][/post]​

Ha. I went to register for the promotion, and it crashes the website. Classic US.


EDIT: They fixed it. Only took a few hours, not bad for them.

 

[ClueByFour]

I think that's about it. There's nothing really awful about these changes for the pax, just a couple mildly lousy things. Nothing that jumps out as being really great, though, which is a shame--I think they could've done better to make a bigger splash.

[post="305708"][/post]​

Hmm, lowered the gold/silver elite bonus levels, did away with the offpeak awards, diluted the elite levels with the addition of a 4th tier, and cranked up the top-end requirements (to a silly segment level--gee, thanks for the shuttle product, folks).

Short of pointing the shotgun at his own foot, Doogie could not have made a bigger spash. :down:

And the "everyone else is doing it" logic with the off-peak awards does not even apply: everyone else has a superior onboard product. 25k miles for a transcon in E+, or in US/HP Y? That's a no brainer (and it's not to book on usairways.com).

And we've not yet heard a word about how they might transh the transatlantic portions of the broadcast just yet.

I'm glad I have some status with UA thru '07. There will soon be more.

 

[Art at ISP]

You know what? It seems like a good start. The melding of the programs was going to be difficult, and I think everyone expected some changes that some people wouldn't like, but I believe it's fair overall.

I am sure there will be complaints about the new Chairmans, but looking forward that shouldn't be difficult.

My best wishes to all at the new US Airways!

 

[ringmaruf]

Well, so far we've got two customers that are basically indifferent and can live with it, and one nattering nabob of negativism who's never happy with anything.

Anyone else?

 

[jimcfs]

I like the 35K award to Hawaii, but don't like they got rid of the 20K off-peak tickets.

As a GP, I don't like the downgrade to 50% bonus. The new platinum level is a good idea (not that I'll make it, but good from the business model).

Overall, it looks good. I'm sure it will be tweaked as we go.

 

[whlinder]

Now if the take a suggestion I made to Barry Biffle and add it in to the program to offset the change I'll be happy as a clam. The suggestion was a "Cash & points" Promotion. Something like 10,000 miles and $149.00 to anywhere in the continental US. 20,000 Miles and $250 to the rest of the system. I was told that the only reason US didn't do that was their IT infrastructure couldn't do it.

[post="305746"][/post]​

AS does this, 15000 miles gets you 50% off up to $250. Of course, AS has always been ahead of the curve in this industry with IT.

 

[Art at ISP]

Correct me if I am wrong, but the new miles/segment requirements are for 2006 accruals-2005 is still the old way for the rest of this year. Am I correct?

Either way I have it made, but just wondering for those on the edge.....

My BEST to you all...

 

[Art at ISP]

Well, so far we've got two customers that are basically indifferent and can live with it, and one nattering nabob of negativism who's never happy with anything.

Anyone else?

[post="305733"][/post]​

Ring,

We're not ALL whiners who are all in it for "me", you know...

These changes make sense. Now it will really be good when the rational fares filter down through the US system.

 

[JAXPax]

As a Gold.... ehh.
I'm at 70 something segments for the year thus far and have zero business travel and one or two personal trips planned between now and January. No incentive for me to fly anything extra.

Don't like the decrease in bonus.... however, it's not like it's been possible for me to use my miles for what I want in the past. The elimination of Saturday night stay is good.

No longer much incentive to book at USAirways.com though, is there?

This fourth elite tier... blaah.

But, this is the America West way of doing things, so might as well get used to it.
Though if I find myself ending up in coach, I'll just book the non-stop on Southwest as they fly non-stop from my home airport to the cities I normally ride US to get to (via Charlotte).

 

[US1YFARE]

I dont like the dilution of CP, even for a limited period, by adding Plats from FF. Not only does it impact upgrade potential--particularly to places like LAS when I don't snag the A fare, but it is unfair to US Golds who have 75K+ but are still golds on US.

Also, did I miss it, but what about the carryover miles?

 

[ClueByFour]

Well, so far we've got two customers that are basically indifferent and can live with it, and one nattering nabob of negativism who's never happy with anything.

[post="305733"][/post]​

Given that not everyone is CP, and thus will be losing both a step in the upgrade conga and a portion of the mileage bonus and the off-peak awards, can you provide some guidance as to how one should feel?

Great--a company that I do business with is diluting and removing benefits from that relationship! What a positive development!

Stop drinking the kool aide. The program has had several benefits removed with one (count it, one) benefit added (saturday stay on rewards).

 

[longing4piedmont]

Well, so far we've got two customers that are basically indifferent and can live with it, and one nattering nabob of negativism who's never happy with anything.

Anyone else?

[post="305733"][/post]​

Humm... Let's see. An airline recently rated the worst domestic airline sets the level of their highest Elite level at a minimum of 20% more than their competition and they want me to fly them?

Yeah…..right.