Top 8 Airline Miles Programs – 2016 Edition

I last made my recommendations of which airline miles programs to join back in 2012 so with all the changes I think it’s time for an update!  Which programs are still good?  Which ones no longer exist?  Which ones are less valuable than before?  How can Australians and Americans get free miles from credit cards?  Read on!

WHAT MAKES A PROGRAM “GOOD”?

  • I attribute greater value to programs which require minimal outlay of cash (no fuel surcharges) and better opportunities to get miles from everyday credit card spend and sign up bonuses.
  • “Buy miles 100% bonus” deals may have value to people who have cash to outlay but since this is a guide for cash poor people who want to travel I am not including them here.
  • These recommendations are for eco-tourists so I haven’t considered luxury travel to Europe and Asia redemptions.
  • Free miles from E-Rewards is a plus.
  • I have not taken elite programs into account in any of the below programs.
  • I am not a credit blogger so please use other resources to find the best deals on sign up bonuses.

1.  American Airlines AAdvantageOne World member

Has more options between USA and Australia on Qantas, Air Pacific or Air Tahiti Nui, also great for LAN or AA to South America and Africa via Qatar or direct QF flights.  Can book several of their partners online with AA planning to add more as they go along.  One way awards at half round trip rates.  Save AA miles for long hauls if possible, use BA for short haul.  No fuel surcharges except BA and IB awards.  E-Rewards participant.

Americans get miles from Citibank co-branded cards and the grandfathered Barclays Aviator cards (not available to new applicants).  You can also transfer points from SPG best done in blocks of 20k to get 5k bonus.

Australians get miles by transferring preferably blocks of 40k Amex MR points to get 20k SPG, then blocks of 20k SPG to get 5k bonus.

2.  United Airlines Mileage PlusStar Alliance member

Good for awards to South-east Asia on UA, SQ & TG; Central & South America on Copa & Avianca and Africa on South African, Ethiopian and Egypt Air.  Also very good for intra-Latin America and intra-Africa.  E-Rewards participant.

Americans get miles easily via Chase’s Ultimate Rewards cards and co-branded United Explorer card.

Australians have a much harder time getting miles as the SPG route is a poor value at 20k SPG gets 10k United plus bonus of 2500.  Most Aussies will find Singapore a better Star Alliance partner.

3.  Singapore Airlines KrisFlyerStar Alliance member

Don’t keep miles in here if you can’t use them within 3 years because they expire whether you have activity or not.  Be careful of fuel surcharges on Asian routes.  Good for redemptions on NZ between Australia and Pacific islands & redemptions on Avianca & Copa for Central/South America trips as no fuel surcharges.

Americans get miles from Chase’s Ultimate Rewards cards, Citibank Thank You cards, American Express Membership Rewards & SPG.

Australians get miles from American Express Membership Rewards 1000:1000 and transferable rewards programs from Westpac and ANZ.

4.  British Airways Avios and Iberia AviosOne World members

Same Avios currency but you need to join both BA and IB’s versions to maximize it.  Pretty easy to earn Avios via E-Rewards and can also credit stays at Accor hotels to Iberia’s program and transfer easily between BA and IB.    Not a great program for long haul or itineraries needing connections but excellent for short haul within South America on partner LAN, the BA-Comair flights within Southern Africa or within Australia on partner Qantas.  Some nice 5th freedom flights in the Caribbean – Trinidad to St Lucia gets you between 2 islands with good birding.

Americans get miles from Chase’s Ultimate Rewards cards and co-branded British Airways card. You can also transfer points from SPG best done in blocks of 20k to get 5k bonus.

Australians get miles by transferring preferably blocks of 40k Amex MR points to get 20k SPG, then blocks of 20k SPG to get 5k bonus.  Aussies need to use a European or American address as they don’t accept memberships with Australian addresses.

5. Flying BlueSky Team member

Be careful as most redemptions here attract fuel surcharges.  Flying Blue can get you some places that are otherwise very difficult to get to such as Kenya Airways flights to Madagascar and Garuda domestic Indonesia flights (no surcharges).  Also use on short haul flights on Gol, Aerolinas Argentinas (no surcharges) and some other interesting partners.  Participates in E-Rewards.  Miles expire after 20 months of when they were earned unless you credit a Sky Team flight to Flying Blue.  Non-flying activities such as credit card spend and E-Rewards don’t renew your expiration date.

Americans get miles from Citibank Thank You cards & Amex Membership Rewards.  You can also transfer points from SPG best done in blocks of 20k to get 5k bonus.

Australians get miles by transferring preferably blocks of 40k Amex MR points to get 20k SPG, then blocks of 20k SPG to get 5k bonus.

6.  Virgin Velocity – Not in an alliance. 

Good for short-haul to New Zealand and Pacific islands, domestic Australia flights and sometimes long haul to USA and Asia.  Participates in E-Rewards.

Americans get miles from transfering SPG points best done in blocks of 20k to get 5k bonus.  You need an Aussie address to join.

Australians have numerous credit cards (basically every bank in Australia) that earn Velocity points directly or transfer there.  Keep an eye out for huge sign on bonuses which have greatly improved in the last year or so.  There is a new partnership with BP to get 2 points per litre with occasional targeted bonuses.

7. Etihad Guest – Not in an alliance

I never looked twice at this program until they partnered up with Flybuys.  I did a recent review with Aussies in mind (sorry Americans) and found some interesting options with partners and decent value to Africa.  Probably not a good program for Americans to join, better to use AA redemptions on Etihad awards.  Beware of miles expiring after 2 years, don’t transfer them until you are within booking range.  Activity does not renew the expiration.

Americans get miles from Citibank Thank You cards.  You can also transfer points from SPG best done in blocks of 20k to get 5k bonus.

Australians get miles from American Express Membership Rewards 1000:1000 and the new Flybuys partnership FB 10,000: EY 4000.

8.  Qantas Frequent FlyerOne World member

Use for domestic Australia or short-haul to NZ, Fiji, Papua New Guinea and Indonesia.  Has fuel surcharges on most routes with the possible exception of LAN intra-South America.

Americans get points from Citibank Thank You cards.

Australians get points from co-branded Qantas cards, just about every bank in Australia has them.  Unfortunately the Woolies and Optus partnerships are gone so much harder to get points now outside of credit cards.

Dream TravelObviously not everyone needs to use ALL these programs.  It depends on where you want to go.  Situations change so you need to be constantly evaluating.  A month ago I wouldn’t have considered Etihad Guest but now I can see getting at least 16,000 free miles each year just by grocery shopping at Coles and using bonuses.  From the previous list US Airways Dividend Miles is gone and the Avianca Lifemiles program is no longer as valuable as it once was due to devaluations.  It is no longer so easy to get Qantas miles as they eliminated their best “every day spending” partners.  American may lose it’s #1 position if they devalue their awards.  I say as long as it’s free to join a program, then do so as you never know what deals may come in the future!

 

Getting To Puerto Rico Using Miles

Yesterday, I blogged about the Parrot Lovers Cruise.  Today, I am going to show you how to get to SJU airport in Puerto Rico FOR FREE using credit card bonuses so you can join this wonderful cruise.  Well not exactly “free” there are about $10 worth of taxes to pay.  If you are unable to travel at that time, this post is still worth reading as the advice would be valid for any trip between the USA and Puerto Rico.

OPTION 1 – AMERICAN AADVANTAGE

You need 25,000 miles per person or a total of 50,000 miles for a couple.  You can get these miles for free by getting the Citibank AAdvantage credit card.  Only one person in the couple has to get the card but if you both have good credit, you should both get one.  I have general airline credit card advice for Americans.   See below a sample screen with random dates near the cruise and allowing for at least 1 day layover in San Juan before the cruise.  There are several options for Citibank cards so choose one from this Flyertalk post which best meets your needs.  Remember, the cruise itself will take up about $800-ish per person of your minimum spending for a couple, then just put your groceries and bills on the card to make it up.  Both people can get 40,000 miles after a $1000 spend with this offer.

LAX-SJU

OPTION 2 – US AIRWAYS

The dates for this cruise have only medium and high level awards available so you need 60,000 miles per person.  But for future reference, low level awards can be had for 35,000 miles round trip if you are lucky with dates.  These lower awards are capacity controlled.   If you have the US Airways Mastercard, you get a 5000 miles discount if you fly on US Airways but not if you use a partner award.  The current best offer gives you 40,000 for first spend, extra 10,000 for balance transfer and 10,000 each year anniversary bonus.

JFK-SJU

Credit card discount

OPTION 3 – UNITED AIRLINES

I randomly chose Seattle as the departure city and plugged in some sample dates to see a schedule and award rate to San Juan.  This award valid for any US city would require 70,000 miles for 2 people.  There is a credit card that would do this for you.  If you have miles in your United account already, log in and you should see an ad to apply for the Chase United Explorer Visa on the home page.  If you pretend you are making a booking and get a fare quote, the offer will increase to 50,000 miles plus 5000 to add an authorized user plus $100 statement credit.  Ideally, both people should sign up for this offer.  You will have to make a minimum spend of $1000 per person/card which is easily done with normal household spending and the cost of the cruise.

UA Award

SEA-SJU

OPTION 4 – BRITISH AIRWAYS AVIOS

This option works best if you live in the east coast USA and have a non-stop flight to SJU on AA from MIA, JFK or ORD.  Awards are based on distance so use the Great Circle mapper tool to determine distance.

Distances

Then use the Avios chart to see how many Avios you need.

Avios Chart

You can get Avios by applying for the Chase British Airways Visa.  The current best offer is 50,000 Avios after $1000 minimum spend with other bonuses for larger spends.  For most couples, the 50,000 will be enough to get you from east coast USA to San Juan.

So now that you see how easy it is to get to San Juan for free just from getting one credit card per couple or at most one credit card per person, you need a place to stay in San Juan.  In tomorrow’s blog, I will show you how to use other credit cards to get free hotel nights to rest up before your cruise and have some fun exploring Puerto Rico.

 

How To Prioritize Your Airline Miles Goals

I have my Top 8 programs that I concentrate on for miles collection to maximize opportunities in both One World and Star Alliance.   I am not lucky enough to have employer paid travel that allows me to earn “free” BIS (butt-in-seat) miles so I have to be more creative in using partners to earn miles.  However with limited funds, there is only so much I can do and even within my Top 8 programs, I need to prioritize whose miles I want to earn first.  Sky Team doesn’t interest me at all because I don’t like their major US partner – Delta’s frequent flyer program.  If Virgin Australia joined Sky Team, they may be of interest but for now they have nothing to offer me that I can’t already get from Star Alliance and One World.

Factors that I don’t care about but you might:  Business travel (employer’s preferences), paying for mileage runs and earning elite status.

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KNOW WHERE YOU WANT TO GO AND WHICH AIRLINES CAN GET YOU THERE

I want to go to destinations that offer good birding with a high population of parrot species.  I also have family in the USA and I attend a major parrot conservation conference in Tenerife, Spain every 4 years.  If there are promos (Grand Slam, credit cards) that allow me to easily acquire miles I would spend them on business class for at least long-haul, otherwise we would fly economy if that’s all we can afford.  So here’s how this all adds up.

  • SOUTH AMERICA – can be reached directly from Sydney on LAN with connections elsewhere.  Y class is reasonably easy to get, J class is very difficult.
  • CENTRAL AMERICA – could reach from South America via LAN or from the USA via Avianca-Taca, Copa, US Airways, United (Star Alliance) or American and LAN (One World).
  • ASIA (INDIA, SRI LANKA, THAILAND, MALAYSIA, INDONESIA) – easily reached on either alliance with generally good availability in award seats.
  • EUROPE – has good connections with both alliances to major European cities, however only Iberia (One World) can get me all the way to Tenerife.  I want to avoid using BA for long haul due to high taxes.
  • USA – this is the most difficult award for me to get as there is a lot of demand from both USA and Australian based frequent flyers.  Award seats in business class are very hard to get, even economy is drying up on Air New Zealand.  It can be possible to route via Asia but MPM (Maximum permitted miles) can cause problems.  For Star Alliance, NZ would be ideal if they would just start releasing award seats!  Otherwise, we need to connect in either BKK or SIN and again in NRT or ICN to get to the USA.  For One World, Qantas has the only direct flights but since I am using AA miles, I also have Hawaiian and Air Pacific as potential award routes.  Unfortunately no stopovers are allowed.
  • PACIFIC ISLANDS – We go to Rarotonga every few years so my husband can see his family.  Only served by Air New Zealand (Star Alliance) and Virgin.  Other islands that are on our radar with airlines that can get us there are:  Tahiti (NZ), Fiji (Qantas, Air Pacific, Virgin, NZ).
  • DOMESTIC AUSTRALIA – One World has the monopoly on alliance based flights – Qantas.  I can also earn miles on Virgin with everyday shopping and partners.
  • AFRICA – I have a bucket list birding trip I would like to do with stops in DAR for Tanzania, JNB and PLZ for South Africa and MRU for Mauritius.  This trip would have very high out of pocket costs on the ground so would require years of saving or a Lotto win.  There are options with both Star Alliance (South African, Turkish, Ethiopian, Egypt Air) and One World (Qatar, Malaysian) but once again this is a major goal I would have to save a long time for.  I would most likely use United miles for this one, possibly Avios for JNB-MRU.

 

KNOW WHICH AIRLINES SERVE YOUR HOME AIRPORT

I use Google flights to look this up.  Just type in “Flights to LAX”, replacing LAX with your home airport code.  In my case, this is BNE.    Now scroll through the list and pull out the airlines which are in alliances and non-allianced airlines that you have easy access to partner earnings on.

  • Qantas – One World
  • Cathay Pacific – One World
  • Malaysian Airlines – One World
  • Air New Zealand – Star Alliance
  • Thai Airways – Star Alliance
  • Singapore Airlines – Star Alliance
  • EVA Air – future Star Alliance
  • Virgin Australia – not in an alliance but able to get free points from local partners
  • Hawaiian Airlines – not in an alliance but partner of AA
  • Air Pacific –  not in an alliance but partner of AA
  • Emirates – doesn’t partner with any airline I can easily earn miles with so not a good option for me.

 

CAN YOU CONNECT IN A LARGER AIRPORT WITHIN YOUR COUNTRY?

Brisbane is not Australia’s major airport, Sydney is.  However, since Star Alliance does not have a partner which serves domestic Australian flights, One World is going to give me a lot more options since I can use Qantas to get to Sydney, Melbourne or Perth from where there are additional flight opportunities.  Using the Google Flights tool, I now look up flights to Sydney (SYD).  Now I can see that in addition to the airlines that also serve Brisbane, I could connect on:

  • Etihad – partner of American and Virgin Australia, but not in an alliance
  • Air China – Star Alliance
  • Air Canada – Star Alliance
  • United Airlines – Star Alliance
  • Asiana – Star Alliance
  • Japan Airlines – One World
  • Air Tahiti Nui – AA partner, non alliance
  • Qatar Airways – future One World

 

ANALYZING THE INFORMATION AND SETTING THE PRIORITIES

On the surface, it looks like I should prioritize Star Alliance and seek out mile-earning opportunities on United and US Airways.  BUT, the main problem is getting award seats from Brisbane as I don’t want to pay out of pocket for feeder flights to Sydney or waste Virgin miles.  Two of the 3 Star Alliance partners (NZ, SQ) that serve Brisbane rarely release business class awards and even economy can be hard to find.  TG is more generous and when EVA Air joins in a few months, hopefully they will also be generous with award seats and routes via TPE will fall within the MPM for US awards.  On the other hand, One World has the only domestic Australian partner that allows me to route via Sydney’s international connections.  American Airlines has 2 major partners that serve Brisbane – Air Pacific and Hawaiian and also Etihad via Sydney.  So here is how I prioritized my airline programs:

MAIN PROGRAMS/LONG HAUL

1.  American AAdvantage – because of more flexibility and domestic Australian feeder flights, extra partners like Etihad, Air Pacific and Hawaiian, one way awards permitted and most airlines I use bookable online.  Also, One World and AA partners serve more of the airports that matter to me.   Can transfer from SPG at 20k SPG = 25k AA and use E-Rewards and flower partners to top up.  Citibank denied me the co-branded credit card but planning to try again in 6 months for the sign up bonus.

2.  United Mileage Plus – would have been first place if they had a domestic Australian partner or better flights out of BNE;  but I value one way awards and online booking so they edged out US.  Can get miles from Chase’s Ultimate Rewards and co-branded cards and any partners which I can’t credit to AA.

3.  US Airways Dividend Miles – good redemption levels but I find the restrictions of round-trip awards and having to call them to book awards stifling.  They have had the best ever promo – Grand Slam which ran every Sept – Nov 2008-2011 which allowed us to earn huge amounts of miles fairly cheap and they also can run good 100% buy or share bonus promos, making it fairly cheap to buy their miles.  If they merge with AA, these miles could potentially become AA miles which I personally value much higher.

SECONDARY PROGRAMS/SHORT HAUL

4.  British Airways Avios – I used them for a bargain one-way LAX-HNL and also have them earmarked for short haul domestic Australian and intra-South America awards.  Can transfer from Chase Ultimate Rewards and E-Rewards.

5.  Avianca/Taca LifeMiles – Good awards within Central America and South America, sometimes offers 100% buy/share miles promos.  The credit card has an anniversary bonus of 6000 miles for $75 annual fee which is a good deal and painless.

6.  Qantas – Awards are expensive so prefer to use AA as main One-World program, also Australian co-branded credit cards can have higher annual fees.  I can get free miles from shopping and phone bills so I just let them silently accumulate.

7.  Virgin – Good for credit card bonuses, transfers from Amex and short-haul to New Zealand and Pacific islands.  Can earn miles with NAB card and Virgin mobile through everyday normal use.

8.  Singapore Krisflyer – Has the best award rates between Australia and Pacific Islands, can use Amex MR to get miles but otherwise no easy “everyday spending” opportunities.

So now I know where I want to look first for incidental bonuses for car rentals, hotel stays, flowers, surveys and where to credit them to!

What are your miles collecting priorities and why?