A Nostalgic Look Back At US Airways Dividend Miles

Posted on March 28, 2015 by Tara

Today is the day the programs merge. It’s the 28th of March in Australia and now also in around half of the USA. Soon we will wake up with increased AAdvantage balances and the US Airways Dividend Miles (USDM) program will be history. I can’t help but think back fondly on all the opportunities we never would have had without it. USDM was the game-changer that put extravagant premium class awards within reach of the ordinary person who had little money but was willing to put in some time and effort.

I never was a big player in the miles and points games until 2008. It always seemed to me that the best benefits were always for those who traveled a lot – actual FREQUENT flyers and were elites. I booked our trips on the cheapest routes although trying to use Star Alliance programs as much as possible as we were collecting United Miles. If we managed a free trip from BNE to RAR or PPT every 2 or 3 years we were happy.

GAMING THE GAME-CHANGER

Then United started blocking partner awards – Starnet – and I had to look for an alternative. Right around this time, one of the best ways for people to earn miles without spending money was playing Live Search Club games. I was already playing for our AAdvantage accounts so it was a natural step to add a few more accounts and start playing for US Dividend Miles. Anyone remember Chicktionary?

LSC was a great little earner while it lasted. An anagram-solver and a desk in front of the tv was all I needed to rake in around 4000 miles in 4 accounts (mine & husbands – US & AA) roughly every 2 weeks. It was a pretty hot topic on FlyerTalk while it lasted. LSC later morphed into Club Bing and by using a never ending supply of new accounts I was able to keep the miles rolling in for around 18 months until they finally shut down in 2010. But the best was yet to come!

GRAND SLAM PROMO

I was too late for the 2008 Grand Slam but ready and waiting for the 2009 version. There was a whole thread in FlyerTalk dedicated to this killer promo where you could earn 50,000 miles by using USDM’s partners. The game was to use as many free hits as possible or to use purchases you were already making at certain hotels or car rentals to create hits. Then find the cheapest item to buy from partners such as Biscoff spread (yummy!), batteries from SkyMall, screen-wipes from some telephone company, sandwiches from dining partners, GAIAM trees from the mall, churned Netflix accounts and stickers from Track-it-Back. We opened brokerage accounts for $5 with Sharebuilder, bought the cheapest Lifelock packages, swapped miles for magazines. Since I live in Australia, my Mom in California was the lucky recipient for several bouquets of flowers and assorted junk.

In 2010, the Grand Slam upped their game to 100,000 miles and in 2011 they upped it again to 110,000 though the last 4 hits were too hard for me so I had to settle for 100,000.

In the latter years, I would prep for the upcoming Grand Slam by getting hotel points for free by doing Foursquare check-ins, Facebook promos and E-Rewards. The Daily Getaways promos which used to be so much better were also a source for cheap hotel points and Grand Slam hits. I estimate that I paid around $600 between both our accounts that I wouldn’t have spent otherwise to get 200,000 miles between us those last 2 years.

TRACK-IT-BACK TAKES IT TO THE NEXT LEVEL

Remember those Track-it-back (TIB) stickers I mentioned? They became another game-changer in the 2009 Holiday promo. You had to spend a certain amount with various shopping partners and there were tiers to multiplying the bonus.

In a nutshell, you made the cheapest possible purchases for the first 4 transactions, then the 5th you bought as many TIB stickers as possible and got 100 miles per $! I don’t remember how much I spent, I got as many as I could manage the cash flow for. Some people on FlyerTalk spent $1000’s and got LOTS of miles!

CHURNING THE CREDIT CARD

I only managed to do this twice – once in 2011 and once in 2013. Each time I got 40,000 miles and on the 2nd one it comes with a 10,000 miles anniversary bonus so I’ve kept it. Barclays Bank has since cracked down on churners.

BUY/SHARE MILES PROMOS – UP TO 100% SHARE

The last great way to get USDM relatively cheaply (although not as cheap as Grand Slam & TIB) was to share miles back and forth between two accounts. Obviously this works better for couples than single people unless they knew someone very trustworthy. When the Grand Slam promo didn’t return in 2012 much to everyone’s disappointment, this became the best way to get USDM and on the bright side it worked equally well for people all over the world. You shared miles to your partner, they got double, then they shared back to you and you got double. USDM kept this promo up until last year, then they scaled it back to 50% bonuses.

The best seat I ever got for free from USDM – Turkish Airline’s wetleased Jet Airways plane used the first class suites as business class so if you were clever with your seating assignments you could sit in a suite for the price of a J award!

SO WHAT DID I DO WITH ALL THOSE MILES?

USDM’s fantastic promos allowed us to go places we otherwise had no chance of affording – usually in business class (bolded)!

2011 – BNE-BKK-ICN-LAX-PHX-MEX /-LAX-ICN-BKK-BNE

2011 – BNE-SIN-KTM /-BOM-SIN-BNE

2012 – BNE-AKL-RAR-AKL-BNE

2013 – BNE-BKK-ICN-YVR-IAH-BZE /-HNL-ICN-BKK-BNE

2013 – BNE-BKK-BLR /- CMB-SIN-BNE

2014 – BNE-BKK-IST-TLV /-BCN-ZRH-FCO-PEK-SIN-BNE

And I still have some USDM left to transfer to AA!

In no alternate universe could someone of my economic level even dream of trips like those! USDM and their crazy promos made it all possible! We visited some of the world’s finest eco-tourism locations and saw some amazing birds that we could only dream about before.

So here’s to you, US Airways! It’s been a wild ride the past few years and I am sad that it’s over but really happy and grateful that it happened it all. From the bottom of my heart (and my champagne glass) thanks for the memories!

AA & US Mileage Accounts Will Be Merged In April

Posted on March 17, 2015 by Tara

Here’s the latest as per the email sent by US Airways about the merger. In addition to the below, I would like to point out that if you have an award trip planned that is within the 330 day booking window that is more advantageous to book with US miles than AA miles, you have about 3-4 weeks to do it.

Trips that require crossing a 3rd zone. Example LAX – HKG – SYD – HKG – LAX. AA will charge you for 2 awards, LAX – HKG & HKG – SYD.
Trips that require using a stopover. Example LAX – SYD – BNE – HKG – LAX with BNE or SYD being the stopover. While AA will allow open jaws and one ways, you would pay extra to add BNE in addition to SYD as a stopover.

Moving to the AAdvantage program

Once we combine programs, we’ll begin transferring your Dividend Miles mileage balance, Preferred-qualifying activity and million mile balance into your AAdvantage account on a one-to-one ratio. We’ll determine your elite status level by looking at your combined elite-qualifying activity for 2014, and separately, your combined 2015 year-to-date elite-qualifying activity. It may take a few days to transfer everything, but we’ll email you once it’s completed.

As a member of the most rewarding airline loyalty program, you’ll continue earning miles when you fly on American, US Airways, oneworld^® and other participating airlines, as well as with over 1,000 partners. And, you’ll still be able to redeem miles for flights, upgrades on American and US Airways, car rentals, hotel stays and more.
Benefits of the AAdvantage program »

Booking award travel

Dividend Miles award bookings and mileage upgrade requests will be disabled a few days before we combine programs to allow us to integrate your accounts. If you plan to redeem Dividend Miles for an upcoming trip, we encourage you to book now. Once our programs are combined, Dividend Miles will be converted into AAdvantage miles, and you’ll be able to redeem AAdvantage miles with American.

Upgrading your experience

Once we combine programs, your elite benefits will initially work differently for American and US Airways flights, as we’ll still operate as two separate airlines. We’ll adopt the American upgrade process for all flights when we have a single reservation system later this year.
How upgrades will work »

To upgrade, you should book flights that are marketed and operated by the same airline – either American or US Airways. If you’re booked on a codeshare flight, you’ll only be able to upgrade when you check in based on availability.
What is a codeshare? »

Soon after we combine programs, qualifying Dividend Miles Preferred members will receive 500-mile upgrades to use on American flights.
How to calculate 500 mile-upgrades »

Benefiting with your card

** I happen to be a cardmember. If you aren’t, now is a good time to apply as Barclays will not be allowed to issue new cards once the programs are merged.

As a US Airways Dividend Miles MasterCard^® cardmember, you’ll begin enjoying your first eligible checked bag free and Group 1 boarding on domestic American flights once we combine programs. This is in addition to the current benefits you’re already receiving on US Airways.

US Dividend Miles Bonus Promos Going Downhill

Posted on December 6, 2014 by Tara

Anyone who can either churn credit cards or manufacture spend won’t be interested in this, especially since the days of the 100% buy/give miles promos are over. But since I have readers in many different countries who can’t access US credit cards, I still decided to share this. These miles will be merged to AAdvantage in the 2nd quarter of 2015.

Remember, you shouldn’t buy miles on spec as devaluations can be sudden and unpredictable. Only buy them if you need to top up for an award and planning to redeem immediately.

Lost Opportunity – 15,000 US Dividend Miles – Spend $500 Nov, Dec, Jan

Posted on December 2, 2014 by Tara

I waited ages for this one as I had seen so many people on Flyertalk get it but I never did.

In normal circumstances this would be an easy one to do – except the email came 2 days after we left for Africa and I didn’t bring this card with me. It’s not one I normally use on an overseas trip due to the forex fees, but I would have made the sacrifice for this type of promo.

After getting home I sent Barclays a secure message asking to postpone the promo to Dec, Jan & Feb since I had been traveling in Africa but no dice! Now I have to decide whether to keep or cancel. They did recently confirm that they would keep the 10,000 anniversary bonus even after the merger with AA so I am inclined to keep it.

AA/US Mileage Accounts Merger Sometime In 2015

Posted on June 11, 2014 by Tara

I have news from email and social media with more news about the AA/US merger.

FROM AMERICAN: Timeline confirmed for 2015. No details about how the miles will be moved from US to AA or if it will be like the UA/CO merger where miles could be moved back and forth for a few months so you could choose which airline’s chart to use. Full details as posted on Facebook.

FROM US AIRWAYS: Increased miles to redeem US/Canada premium cabin awards (which is probably not the priority for an eco-travel blog). There is also some news for elites, please see details on US website. US does have very attractive off-peak awards between the US and South America so if you have an award in mind it’s worth redeeming before 2015.

TAM & US Airways Join OneWorld Alliance

Posted on March 31, 2014 by Tara

Although I am not sure what time in which time zone, sometime within the next couple of hours, TAM and US Airways will have officially left Star Alliance and joined OneWorld. If you are a member of American AAdvantage or British Airways Avios, this means you now have 2 new airlines to book awards on! If you are a member of US Airways Dividend Miles, this means you will now be booking your awards using the OneWorld alliance partners. You will find US Airways listed as an American Airlines affiliate since they are in the process of merging.

US Airways also plans to continue partnerships with some Star Alliance airlines on an individual basis – Aegean, Air China, Air New Zealand, Shenzhen Airlines, Singapore Airlines, South African Airways, TAM, TAP and Turkish Airways. We still don’t know if you will be able to mix awards using OneWorld airlines and these individual partners. Some of the partners such as Air New Zealand & Singapore Airlines will end this agreement in June.

HEADS UP TO ECO-TOURISTS

With TAM in OneWorld, this creates a nice opportunity for cheap award flights around Brazil using Avios! I’ve highlighted a few destinations in yellow in the route map below that are of greatest interest to birders. Brazil is a very easy country to get around and it is very simple to book most of the best eco-lodges online so this will make it easy to create your own individualized birding itinerary!

US Airways has added more routes within the USA and to Europe and a few routes to the Caribbean which may be helpful.

In just one more month, Sri Lankan Airlines also joins OneWorld and opens up more possibilities to this gorgeous country with amazing birds that I was blogging about for a couple months!

US Airways Emails An Update On Alliances & Codeshares

Posted on December 18, 2013 by Tara

This is great news as it means you will still be able to book certain Star Alliance airlines after the merger with AA takes place. It’s also good news for people who have already made a booking for travel that will take place after the merger as US will still have access to award seats and a relationship with these airlines in case of irrops. Here is the full email. I bolded the most important facts you will want to remember.

An update on our alliances and codeshares

We’re excited to be a part of the new American and look forward to bringing you a stronger airline. In early 2014, we’ll be entering into a codeshare agreement with American, which means that you’ll be able to seamlessly book travel throughout the US Airways and American network.

On March 31, 2014, we plan to join the oneworld® alliance, so you can look forward to mileage earning and redemption opportunities, reciprocal elite benefits and lounge access on oneworld carriers. Some of these benefits will be phased in as we work toward full integration.

There are a few important changes to keep in mind for future travel:

We’ll be exiting Star Alliance on March 30, 2014. You’ll be able to earn and redeem Dividend Miles on Star Alliance carriers until that date. Any existing reservations for travel on a codeshare flight with a Star Alliance partner after March 30, 2014 are safe, however, you’ll be rebooked with a new flight number from the carrier operating the flight and you’ll no longer earn Dividend Miles or receive Star Alliance Gold or Silver benefits.

Since the legal close of our merger with American on December 9, 2013, we no longer offer codeshare flights for sale with United Airlines. When we exit Star Alliance on March 30, 2014, we will no longer offer codeshare flights for sale with Brussels Airlines, Lufthansa or SWISS. Any existing reservations are safe, but you will not earn Dividend Miles for flights on these carriers after March 30, 2014.

We plan to continue relationships with the following airlines, so you can continue to earn and redeem Dividend Miles on these select partners even after we’ve exited Star Alliance: Aegean, Air China, Air New Zealand, Avianca, Ethiopian Airlines, Eva, Shenzhen Airlines, Singapore Airlines, South African Airways, TAM, TAP and Turkish Airways.

US Airways customers with Star Alliance Gold status will no longer have access to Star Alliance lounges after March 30, 2014.

You can learn more and stay up-to-date by visiting usairways.com/arriving.

Industry News About US-AA Merger

Posted on December 12, 2013 by Tara

While I was away, more details have been released about the timeline of the merger. The most important thing for eco-tourists to note is the date US leaves Star Alliance, especially if you have plans to visit Central America, South America or Australia/New Zealand. Currently these zones are better served using a US Airways Dividend Miles award so you will want to book your trip by 30 March, 2014 so travel ends by 22 Feb, 2015. You would still be able to use your US miles on One World airlines but these areas have better options with Star Alliance.

US Airways to join oneworld on 31 March 2014

US Airways will join oneworld® with effect from 31 March 2014, following completion today of its merger with alliance founding member American Airlines. All its regional affiliates, operating under the US Airways Express brand, will also transition to oneworld at the same time.

Their entry into oneworld with effect from the first flights on 31 March 2014 will follow immediately upon their exit from the Star Alliance with the final flights on 30 March 2014. All parties are taking every effort to ensure that the alliance transition is as seamless as possible for customers.

US Airways to Leave Star Alliance March 30, Join Oneworld March 31, Begins Integration of Frequent Flyer Accounts

In a letter to employees, Parker said that customers will soon be able to earn and redeem rewards miles on both program. The US Airways program, Dividend Miles, will eventually be merged into American’s AAdvantage program. In addition, in early January, the AA code will be placed on all US Airways flights and vice versa, as the combined airline aligns its schedule.

Another significant change for customers will be the co-location of American and US Airways in airports, starting with its hubs.

In addition, US Airways said that it will continue numerous relationships with airlines in Star Alliance after it leaves at the end of March. Flyers will be able to continue earn miles on the following airlines: Aegean, Air China, Air New Zealand, Avianca, Ethiopian Airlines, Eva, Shenzhen Airlines, Singapore Airlines, South African Airways, TAM, TAP, and Turkish Airways.

Sizing Up The AA – US Merger

Posted on February 15, 2013 by Tara

AA US Merger

It’s all over the main news channels and the travel blogosphere, AA and US have announced their imminent merger on Valentine’s Day no less! FlyerTalk and other travel blogs are buzzing madly with speculation on what this all means for them. Both airlines are on my list of top 8 airlines for eco-travelers. So far, all we know officially from AA in regards to the frequent flyer programs:

Enjoy a more rewarding travel experience with American Airlines AAdvantage® and US Airways Dividend Miles.

At this time, American and US Airways will remain separate companies and each company will maintain its current loyalty program. Your AAdvantage miles are secure and existing miles will continue to be honored. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million Miler^SM are secure and remain intact. In addition, you will continue to earn miles through existing AAdvantage participating companies, including the Citi^®/ AAdvantage credit cards and will be able to redeem those miles for the same great awards – flights, upgrades, car rentals and hotels, just to name a few.

You will continue to have options for travel and benefits both domestically and internationally through our continued membership in the oneworld^® Alliance. As they do today, our oneworld^® partners will offer you access to a range of destinations, airline choices, and mileage earning and redemption opportunities.

You can continue to book, track and manage flights and your AAdvantage account on AA.com.

Ultimately, the combined company is expected to offer members more opportunities to earn and burn miles from an expanded global network of routes and partnerships, unmatched redemption options — including flights, hotels, car rentals, vacation packages, one-way awards and lounge memberships – and much more.

And from the US Airways site:

Enjoy a more rewarding travel experience with US Airways Dividend Miles® and American Airlines AAdvantage®. Both programs are among the most popular loyalty programs in the world and will continue to offer best-in-class elite programs, unmatched redemption options and more ways to earn miles from an expanded global network of routes and partnerships.

Until the merger is complete, US Airways and American Airlines will remain separate companies and each company will maintain its current loyalty programs (US Airways – Dividend Miles and American Airlines – AAdvantage). Existing miles will be honored, and there will be no impact to your US Airways MasterCard® or US Airways Visa® card. You can continue to earn and redeem mileage for travel awards with us and our Star Alliance partners. You can also continue to book, track and manage flights on usairways.com.

THE EFFECT ON ECO-TRAVELERS

It’s going to be tough to assess the effect on eco-travelers because both alliances have their strengths. Right away, I can see that people traveling between North America and the South Pacific are going to have to fork out more miles in the AA program. These awards currently cost 75k in Y and 125k in J using AAdvantage vs 80k in Y and 110k in J on US Airways. If a trip to Australia, New Zealand, Papua New Guinea, Cook Islands and other Pacific Islands is on your wish list and you want to travel in business class, you might want to consider bringing it forward to take advantage of the bargains on US Airways. Economy travelers will find AA’s award cheaper.

Once US Airways leaves Star Alliance for One World, you won’t be able to access some airports like Rarotonga. If you have a trip planned and had earmarked US miles to pay for it, check to see if it will be accessible using One World carriers. Star Alliance/US Airways also had an edge on awards from North America to Africa, North-east Asia and Central Asia.

WHICH STAR ALLIANCE CARRIER TO USE?

Americans will probably be better off with United since there are several credit cards that can be used to either direct sweep to UA or transfer via Ultimate Rewards. If you are not an American and can’t get the Chase credit cards, first check what kind of credit cards you CAN get. Chances are, you may be able to transfer them to another Star Alliance partner such as Thai, Singapore, Lufthansa, ANA, Asiana or Avianca-Taca.

If you can’t get any credit cards, Avianca-Taca LifeMiles will be the main source of buying miles cheaply to redeem on Star Alliance carriers. They currently have a share miles 100% bonus promo until the end of Feb but you must have been a member prior to the promo being released. People who want premium cabin awards may be frustrated if they can’t find the same cabin class all the way through. You can’t mix classes such as Y from MCI-LAX and J from LAX-BKK for example. If you only want an economy award, you’d be fine with LifeMiles.

ONE-WORLD IS GOOD FOR ECO-TRAVELERS

Assuming you don’t have other issues such as elite benefits, hub airports and upgrade certificates, the change can be positive for most eco-travelers. One World does cover most of the places we want to go. LAN and new partner TAM (soon to be One-World) have South America pretty well covered and can even get you directly from Australia to South America without having to transit the USA. Qantas can get you to anywhere in Australia, several places in New Zealand and many Pacific Islands. New partner Malaysian and original One-World member Cathay Pacific can get you between Europe and Asia/Pacific. Qatar and Sri Lankan are joining soon. AA also has non-alliance partners of interest such as Air Tahiti Nui, Air Pacific and Etihad. PLUS, once the miles are merged, you will be able to use your hard-earned US miles for one-way awards!

THE BAD NEWS

The merger puts the last nail in the coffin of the US Grand Slam promo that netted some of us huge amounts of miles at a very low cost between 2008-2011. They didn’t have it last year but we could only hope for 2013 – well hope no more!

US has traditionally had 100% bonus miles on buying miles several times a year. AA has been more conservative with only 30-50% bonus on buying miles and they have it tiered so if you only need a few to top up to an award level, it could be as low as 10% bonus. If you want to top up your US account now, there is a targeted promo to US Mastercard holders for 100% bonus and 50% bonus to everyone else.

If you want the US Mastercard, better get it now. The current best offer is this one. The Chairman’s offer which had the 10,000 anniversary bonus miles was pulled today. We don’t know if this card will be churnable going forward so will have to monitor the FlyerTalk thread for new data.

If you have upcoming hotel bookings and/or car rentals you plan on crediting to an airline, check the offers on both AA and US for the best deal.

Sharebuilder is currently offering 2500 US miles for new accounts. Most of us already did this one for the last Grand Slam in 2011 but if you haven’t done it yet, might as well grab some cheap miles. Use the portal from the US page.

TIME TO ASSESS YOUR TRAVEL PLANS

The likely timeline for full integration has been posted by several people, this one on FlyerTalk sounds pretty logical to me. Star Alliance awards will be more expensive on United Mileage Plus or Avianca-Taca LifeMiles than they are in US Dividend Miles. Size up your travel plans and see if it’s worth doing them sooner rather than later or if it would work better in your favour to wait until the phase where they let you move miles back and forth between the two programs for a few months. Miles To The Wild will be keeping you updated with any new developments as they are released.

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Tag Archives: AA-US Merger