Merger of US Airways And American Airlines’ Rewards Program Brings More Advantages

Following the merger of US Airways and American Airlines in December 2013, the merged company is consistent with its objective of creating the world’s biggest fleet of airbus aeroplane by forming a single loyalty program. The American Airlines announced on its website it is bringing the US Airways Dividend Miles members into the AAdvantage program, which will enable members to earn miles when they choose to book a flight with US Airways, American Airlines, American Eagle or any Oneworld and partner airlines.

Once finally merged on March 29, the loyalty programs will also make the airlines the biggest airline rewards program with a potential 100 million members. To kick-start the merger, redemptions for US Airways Dividend Miles have already been shut off on March 25. Milecards posted an announcement on its website informing that with the merger come both the advantages and drawbacks.

For example, while prices for the American AAdvantage award remain the same, “six of 20 price differences lower on the US Airways” will increase. Destination such as Australia or South Pacific on an economy class which only required 75,000 miles for a roundtrip, will charge 80,000 miles or even more now. On business class however, AAdvantage makes a substantial difference with its 160,000-mile charges for roundtrip.

Meanwhile, Milecards assured there will be no changes on its AAdvantage fees. In fact, the merger reward program will eliminate some fees such as for award processing fee and charges for changing flight 21 days before departure.

“Punishing AAdvantage members with new fees is risky at this point of time, given how sensitive the merger process is, and we think it would create a lot of ill will among AAdvantage members at a critical juncture,” said the announcement.

Besides booking flights, earning miles is possible by shopping or staying with the airlines’ partners. Rewards in redeeming miles include upgrades, car rentals, award travel and hotel accommodation, to mention a few.

American Airlines Group Incorporated is the new holding company of US Airways and American Airlines after the merger in December. The merger plan was announced in February 2013, 15 months after AMR Corporation, previous parent company of American Airlines filed for bankruptcy protection.

For comments or feedback on the article, please contact the writer at selivak@ibtimes.com.au.