ExtremeLabs - US Airways Dividend Miles Redemption Madness

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Welcome to ExtremeLabs
Wednesday, September 08 2010 @ 09:54 AM EDT

US Airways Dividend Miles Redemption Madness

Saturday, January 05 2008 @ 10:24 PM EST
Contributed by: Admin
Views: 1,233

There's this amusing trend among journalists that believes that airline frequent flyer programs might be worth more than the airlines themselves. This values, in my opinion, US Airway's frequent flyer program called 'Dividend Miles' somewhere in the negative billions of dollars, as the program seems nearly worthless to me.

Let me explain.

I'm a 'Silver' status flyer on US Airways. This means that I met their 25,000+ flying miles per year criteria. I also have been a member of their 'Presidents Club' with additional status granted to another one of the 'Star Alliance Partner' clubs, United's Red Carpet Club. I fly, and pay additional money to have a quiet place to do things in busy airports across the planet. That's all fine.

Let's say I want to redeem Dividend Miles for free trips. Aye- there's the rub. Click the link for the sordid story.

Initially, I wanted to use my 38,000+ miles to bring my daughter home for the holidays. That didn't work. The seats were long booked.

Then I decided to, more than a month in advance, book a trip to California. There's a selection on their website to look at nearby airport. As the destination was Southern California, looking at possibilities this way was advantageous, so I did that. I accidently booked my return flight from an airport more than 100 miles away from where I was going to stay. It wouldn't work.

I called the Dividends Miles customer service number, as apparently no one else in the universe can make a change to a confirmed reservation. The change to the desired airport, despite the fact that it was closer, would cost me $100. There are no ifs, ands, buts, or other considerations or appeals of any kind available. Change it, and it costs $100.

Now there's customer service, and a big incentive for travelers to stay with US Airways.

Not.

I can hear them in the back room snickering. They're saying "let's see if we can poke him with a hotter poker-- yeah-- that'll make him love us!"

I remember another CEO, one at United, that bankrupted them. He had the same growth desires. Then he made hideous mistakes at United that nearly tubed the airline, taking with it, the hard work pensions of hundreds of thousands. What will US Airway's CEO do next to disenfranchise his clientele? I wonder the answer. I shudder at the answer, actually.

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