A new formula for US Airways frequent fliers
US Airways Group is rejiggering the number of frequent-flier miles customers will need to cash in for free flights. The shift, effective Jan. 6, will require fewer miles for off-peak travel, but more miles for high-demand flights - such as Paris in July, or anywhere around holidays.
US Airways Group is rejiggering the number of frequent-flier miles customers will need to cash in for free flights.
The shift, effective Jan. 6, will require fewer miles for off-peak travel, but more miles for high-demand flights - such as Paris in July, or anywhere around holidays.
"US Airways is just trying to get people to use more miles for the same flights," said Steve Lapin, a salesman who lives in Melrose Park and flies three times a month. "People are going to travel on fewer trips on their miles because they will have to use more miles."
Currently, passengers must cash in either 25,000 or 50,000 miles for a round-trip coach ticket in the United States or Canada, depending on time of year, destination, and available seats. That will bump to as many as 60,000 miles needed on some high-demand flights under the new rules.
US Airways, which transports two-thirds of passengers in Philadelphia, said the change will provide frequent fliers "more flexibility and options" in redeeming miles.
Richard S. Golaszewski, aviation consultant with GRA Inc. in Jenkintown, said that although passengers will have to use more miles, they will have more certainty in getting the flight they want.
"Right now, you try to get an award flight and there aren't any. This new program basically says, if you are willing to use more miles there's probably going to be more seat availability," he said. "The airlines have some incentive to get the miles used."
Golaszewski said, "To the extent you can get people to use them, and use more of them for a flight, that helps the airline."
Unredeemed award miles are an expense on an airline's balance sheet. As of Dec. 31, frequent fliers in US Airways Dividend Miles program had racked up about 2.6 million free awards, according to a Securities and Exchange Commission filing.
Philadelphia's dominant airline recorded a $151 million cost associated with unused miles last year. US Airways also began charging $50 to redeem award tickets.
In the future, instead of dividing awards into two levels - requiring either 25,000 or 50,000 miles for round-trip domestic coach tickets - the new program will divide into three or four levels, based on off-peak, low, medium, and high demand.
The new GoAwards mileage needed for coach seats will begin at 25,000 miles, and bump to 40,000 miles for "medium" demand, and 60,000 for "high" demand flights.
Award tickets to Europe now require either 50,000 or 100,000 miles for a round-trip coach fare, and 80,000 or 160,000 miles for an envoy or business class round-trip ticket.
The GoAwards rules move to a four-tier system, ranging from 35,000 to 125,000 miles to redeem a coach ticket, and 60,000 to 350,000 miles for a business class round-trip.
Just how US Airways classifies low and high peak demand is proprietary, the airline said, as are how many seats are available on each flight for free tickets.
"We don't disclose it so our competitors don't have a sense of what inventory we have out there that's available for award redemption," said airline spokesman Morgan Durrant. "That's one of the great mysteries about award travel."
US Airways also does not disclose the number of frequent fliers in its program.
Like all airlines, US Airways is trying to cut costs because of the economy and drop in travel. Last year, the carrier added "a la carte" fees for things like checked bags, choice seats, pillows, and blankets.
"The question is how many seats will US Airways make available at each mileage level," Golaszewski said. "Are there going to be more seats available, or is this simply raising the price of the existing supply? This does give US Airways an incentive to make more seats available."