American AAdvantage and US Airways Dividend Miles Combine – What it means to you

On Tuesday, American Airlines announced that it would combine the legacy loyalty programs of American Airlines and US Airways on this coming Saturday, March 28.  Previously, American had stated that these two programs would be merging sometime in the second quarter 0f 2015, so this puts them a little ahead of schedule.  The newly combined program won’t be a huge change to those loyal to American Airlines, but it looks to be quite an adjustment for those US Airway Preferred members — and many of those adjustments are good!

So now that these programs are merging into one, what does that mean to the frequent flyer?

In general, passengers should know the following tidbits while this merger goes through this week:

  • Both websites will be functional this week as the programs combine
  • Some US Airways Dividend Miles functionalities will be unavailable until Saturday, March 28
  • The last day to book US Airways awards and to take advantage of its unique award chart is Wednesday, March 25.
  • If you’ve already linked your US Airways Dividend Miles and American AAdvantage accounts, they balances will be combined
  • If you haven’t linked your accounts, the airline will combine your accounts and issue a new American AAdvantage number to you that will show your combined airline activity

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2015 Combined AAdvantage Loyalty Program Announced

This morning, American Airlines announced its 2015 AAdvantage Loyalty Program for the combined American and US Airways.  As an American elite, the program remains largely un-changed, and that’s a great thing!  With that said, there are a few changes to the program that I’ll highlight in this post.  The theme of the whole deal is that the combined carrier will run one loyalty program (AAdvantage) for two separate airlines and reservations systems at American and US Airways.  This is a bit awkward, but if they make it work like it’s laid out here, it should be fine.

The Changes

Elite Qualification

  • From an initial scanning of the new program, the biggest change is an increase in the qualifying criteria for qualifying by segments.  The new program features an increase of Elite Qualifying Segments (EQS) for Gold / Platinum / Executive Platinum from 25/50/100 to 30/60/120.  The qualification criteria on Elite Qualifying Miles (EQM) and Elite Qualifying Points (EQP) remains the same, and that’s a HUGE sigh of relief.
2015 AA Elite Qualification Criteria

2015 AA Elite Qualification Criteria

Elite Benefits Flying on American

  • For Gold and Platinum elites, 500-mile certificates will still be needed to upgrade on flights over 500 miles, but upgrades continue to be unlimited for Executive Platinum members when flying American
    • Previous US Airways elites will receive 500-mile stickers based on their qualification history so they can upgrade on American flights

Elite Benefits Flying on US Airways

  • When flying US Airways, complimentary upgrades will be cleared automatically, based on status (up to 2 /3 /4 days for Gold / Platinum / Executive Platinum)
  • Integration of Auto-upgrades at US Airways (AA elites will be auto confirmed on US Airways instead of at check-in) — this is great!

General Elite Benefits and Notes

  • All AA elites are now eligible for unlimited complimentary upgrades on flights under 500 miles
  • Executive Platinum Systemwide Upgrades (SWUs) can now be used on US Airways flights, too
  • Addition of free same-day changes for Executive Platinum Members!
  • Mileage balances, elite qualifying miles and  segments, and lifetime miles will be combined in early 2015

Mileage Earning

  • There are no changes to the mileage earning schemes other than:
    • The mileage earning bonus for business class tickets will increase from 25% to 50%.

You can read all the details on the changes here:  2015 AAdvantage Program

The Timeline

Here’s a high-level timeline on when benefits will be available to AAdvantage members:

Right now

January 2015

Second quarter of 2015 (when programs are combined)

More detail on the timeline can be found here:  2015 AAdvantage Integration Timeline

Initial Thoughts

I am very happy with the changes.  As an American Executive Platinum member, I view these changes to the 2015 AAdvantage Loyalty Program as all positive (other than the increase in segments needed for qualification).  Since I will likely qualify via EQM, this does not affect me.  The benefits also increase a bit for Gold and Platinum members, but the level of benefit for those members pales in comparison to what Executive Platinums get.

I was very worried about the addition of a revenue requirement, but that was not included…. for now.  We’ll see what happens after the two airlines are fully integrated.

Note:  I’ll continue to analyze some of these changes throughout the day and provide more commentary, as needed

Elite Status Challenges with American Airlines

Airlines – particularly legacy US carriers — value their elite passengers.  These passengers are widely viewed by the airlines to be some of their most profitable passengers, and as such, those passengers are extended numerous perks such as priority boarding, free checked bags, and first class upgrades.  For quite some time, most airlines offer published and un-published opportunities for elite passengers of its competitors called status matches or status challenges. The basic premise of a status match is that an elite member of Airline A would request and be granted equal status with Airline B once their elite credentials were verified.  A status challenge is where an elite member of Airline A is granted equal status with Airline B provided that the member flies X amount of miles/points/segments in Y amount of time (months).Screen Shot 2014-09-04 at 9.06.54 PM

What is an American Airlines Status Challenge?

American Airlines currently offers varying levels of status challenge opportunities for elite passengers of rival carriers –  primarily United and Delta, though YMMV with other carriers.  There are currently three levels of status challenges: Continue Reading →