Go Back  FlyerTalk Forums > Miles&Points > Discontinued Programs/Partners > US Airways | Dividend Miles (Pre-Consolidation with American Airlines)
Reload this Page >

Attention: US to eliminate Preferred Mileage Bonus! (Merged thread for this topic)

Attention: US to eliminate Preferred Mileage Bonus! (Merged thread for this topic)

 
Old Jun 12, 2008, 6:46 pm
  #1  
Original Poster
 
Join Date: Jan 2007
Programs: UA 1K, *G, Marriott Platinum
Posts: 185
Exclamation Attention: US to eliminate Preferred Mileage Bonus! (Merged thread for this topic)

The title says it all. I just received an email informing me of the change.
http://usairways.com/awa/Content/FAQ...edmileage.aspx
jbryan77 is offline  
Old Jun 12, 2008, 6:51 pm
  #2  
 
Join Date: Apr 2005
Location: Washington, DC (DCA)
Programs: UA, AA, AS, SPG.
Posts: 3,463
Even with all the cut backs that is truly shocking
uva185 is offline  
Old Jun 12, 2008, 6:56 pm
  #3  
 
Join Date: Sep 2001
Location: CLT
Programs: FT Member #8119 F & J Free Agent
Posts: 6,550
Originally Posted by jbryan77
The title says it all. I just received an email informing me of the change.
http://usairways.com/awa/Content/FAQ...edmileage.aspx
The sticky at the top of the page says it all.
planeluvr is offline  
Old Jun 12, 2008, 7:06 pm
  #4  
FlyerTalk Evangelist
 
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 30,986
"Now that Preferred bonus miles are being eliminated, what are the key benefits of the Preferred program?

Dividend Miles Preferred benefits make your traveling experience as convenient and enjoyable as possible. They include:

* The richest upgrade program in the industry
* Access to Choice Seats and the ability to confirm standby travel
* Priority check-in/security lines/boarding/standby
* First & second checked bag fee exemptions


While these benefits also represent a significant cost to US Airways, most members tell us that they place greater value on them than on bonus miles."

Seems to me all of these benefits are available at all levels. Looks like moving from 10 years as CP down to Silver was the right move.



btw, how many of you received the "what's more important, bonus miles or other benefits" suvey? Aparently 50% of the total FF membership not only was surveyed, but responded that bonus miles were least important. I must have missed it.

Originally Posted by uva185
Even with all the cut backs that is truly shocking
If you're still shocked by anything US does, you haven't been paying close enough attention.

Last edited by CPRich; Jun 12, 2008 at 7:20 pm
CPRich is online now  
Old Jun 12, 2008, 7:48 pm
  #5  
 
Join Date: Jun 2005
Location: Liverpool, England
Posts: 1,080
A surprise?

With oil expected to hit $150 a barrel soon, I'd watch the other US carriers because this will hit them all. They will continue to cut and cut until they are forced to merge to remain profitable. I'm sure UA, DL etc will follow. There are too many competing carriers in the US domestic market - surely it can't continue in this economic climate?

Just my thoughts.
warbo is offline  
Old Jun 12, 2008, 8:12 pm
  #6  
 
Join Date: Jan 2007
Location: Pittsburgh, PA
Programs: CO/DL:Gold, UA:PremExec; Marriott:Gold, Hilton:Silver
Posts: 312
warbo,

I respect your insight and opinion, but I truly hope you're wrong.
FreqFlyerPhil is offline  
Old Jun 12, 2008, 8:20 pm
  #7  
 
Join Date: Feb 2008
Location: The Right Creek, AZ
Programs: UA Silver, AA Lifetime Gold, Marriott Lifetime Platinum
Posts: 593
Wow. And just more wow.

On the plus side, maybe now as Elites, we can get our upgrades more regularly, since there will be less DM award tickets issued... lol

WN is looking prettier as we go...
DesertFlier is offline  
Old Jun 12, 2008, 8:34 pm
  #8  
SWG
 
Join Date: Jan 2005
Posts: 413
Originally Posted by FreqFlyerPhil
warbo,

I respect your insight and opinion, but I truly hope you're wrong.
As do I. However, if people do not abandon US in droves and actually put up with this, others airlines will follow suit.
SWG is offline  
Old Jun 12, 2008, 8:38 pm
  #9  
Suspended
 
Join Date: Nov 2004
Location: London
Programs: BA GGL, AA 1MM LT GLD, SPG PLAT, National Exec Selc, Hilton Diamond, Hyatt Plat, Marriott Silver
Posts: 8,278
Originally Posted by warbo
With oil expected to hit $150 a barrel soon, I'd watch the other US carriers because this will hit them all. They will continue to cut and cut until they are forced to merge to remain profitable. I'm sure UA, DL etc will follow. There are too many competing carriers in the US domestic market - surely it can't continue in this economic climate?

Just my thoughts.
Really? There are far more in the European market relative to the population.The idea that there is too much capacity and too many airline is a bunch of it. A sensible business model is what is really needed. No airline is willing to muscle up and develop their own. Until then we'll have this nonsense.....

In Europe - there are different types of airlines which charge different types of fares and provide different service levels and even fly into different airports. Why no CEO in the US Airline industry has thought if this is grounds to be removed by the Board of Directors IMHO.
sts603 is offline  
Old Jun 12, 2008, 8:41 pm
  #10  
 
Join Date: Sep 2005
Posts: 6
Angry I have been chairman for 4 years now

after August, I will stop flying US Airways if they continue to end the bonus program

what's worse is the implication that if/when they merge with united, they will do the same thing!
from_Cali is offline  
Old Jun 12, 2008, 8:47 pm
  #11  
 
Join Date: Sep 2005
Location: Phoenix AZ
Programs: US UA AA DL CO
Posts: 326
maybe I'm confused, but...

How does eliminating the mileage bonus bring MORE revenue into USAirways bank account? I would think the IMMEDIATE effect would be to iritate it's most loyal customers. The benefit the airline would receive would be less free tickets, but they do that anyway by capacity controlled seats.
Tucker501 is offline  
Old Jun 12, 2008, 9:23 pm
  #12  
 
Join Date: May 2007
Location: Seattle area
Programs: Peasant at large
Posts: 595
Originally Posted by Tucker501
How does eliminating the mileage bonus bring MORE revenue into USAirways bank account? I would think the IMMEDIATE effect would be to iritate it's most loyal customers. The benefit the airline would receive would be less free tickets, but they do that anyway by capacity controlled seats.
You can thank MBAs and CPAs for that. Like most outsourcing projects, this will look good on paper.

The long term effect (like most outsourcing project) is very likely to be negative but in the short term, the management team can pat themselves on the back with fat bonuses because on paper, it looks like the trimmed a chunk of their liabilities.
crunchie is offline  
Old Jun 12, 2008, 9:51 pm
  #13  
 
Join Date: Jan 2005
Location: ZRH
Posts: 659
Originally Posted by crunchie
You can thank MBAs and CPAs for that. Like most outsourcing projects, this will look good on paper.

The long term effect (like most outsourcing project) is very likely to be negative but in the short term, the management team can pat themselves on the back with fat bonuses because on paper, it looks like the trimmed a chunk of their liabilities.
Don't know many CPAs who would advise irritating your loyal customer base to gain minimal P&L benefits and a little balance sheet dress-up for a liability the airline fully controls by limiting redemption availability and cost. But maybe that would appear to be a good idea to those MBAs...
goheelswks is offline  
Old Jun 12, 2008, 10:24 pm
  #14  
 
Join Date: Feb 2004
Location: Doylestown, PA, USA
Programs: UA Platinum Hilton Diamond, Marriott Gold
Posts: 549
I would have thought the preferred solution would have been to double the number of miles needed for redemption---

This would still protect your FF'rs

I think miles, in the current price climate, are overvalued... A 50,000 mile RT TA is a tremendous value in the age of $140 oil and $1500 TA trips.

And you can get that with a credit card and very minimal effort. In other words, just because the price of oil is up, the "acquisition bonus" for a credit card (1/2 a RT TA ticket) has gone from maybe $800/2 = $400 to more like $1400/2 = $700...... $700 to sign up for a Credit Card-- hell that's baseball card signing money, it's so silly! Line 'em up!

Cutting the bonus will just make people fly other airlines-- and to some extent will make people try to redeem other Star A miles on US, no??

Also, I can't see other airlines matching the no bonus move.

They would have matched a devaluation, in my opinion....

ytjk
ytjk is offline  
Old Jun 12, 2008, 10:35 pm
  #15  
 
Join Date: Feb 2008
Location: The Right Creek, AZ
Programs: UA Silver, AA Lifetime Gold, Marriott Lifetime Platinum
Posts: 593
Originally Posted by Tucker501
How does eliminating the mileage bonus bring MORE revenue into USAirways bank account? I would think the IMMEDIATE effect would be to iritate it's most loyal customers. The benefit the airline would receive would be less free tickets, but they do that anyway by capacity controlled seats.
Because they are assuming you will still want to take that European or Hawaiian vacation, and you will pay revenue to get there on US.
DesertFlier is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.