Comments on: US Airways Devalues Dividend Miles

By: Margaret Nahmias

Margaret Nahmias — Thu, 21 Feb 2008 01:45:53 +0000

This is really good for long distance or multileg fliers. I don’t see how giving people miles for the distance actually flown is devaluing the program.The days of generous FF perks are over.u

By: Wonko Beeblebrox

Wonko Beeblebrox — Tue, 19 Feb 2008 00:00:21 +0000

Quote:

Why do you assume that if US charges $200 for LA-NY and the same $200 for LA-Phoenix that US makes more money on the shorter flight $200 passenger.

Answer:
because you can go LA-NY via a stop in Phoenix.

By: Xnuiem

Xnuiem — Mon, 18 Feb 2008 23:07:02 +0000

If they wanted to be rational they would base miles on fare class..

Or be in another industry….

By: Nick Barnard

Nick Barnard — Mon, 18 Feb 2008 20:13:04 +0000

If they wanted to be rational they would base miles on fare class..

By: CF

CF — Mon, 18 Feb 2008 19:31:47 +0000

jonathan – I’m not talking about overall profitability of the whole flight but rather of that particular seat. The cost of flying someone 300 miles vs 2,500 miles is less, so if the revenue is the same, then the profitability of that person is higher on the flight with lower costs.

By: jonathan reed

jonathan reed — Mon, 18 Feb 2008 19:20:36 +0000

Why do you assume that if US charges $200 for LA-NY and the same $200 for LA-Phoenix that US makes more money on the shorter flight $200 passenger. Sure, if everyone on each flight paid the same amount the shorter flight would cost less in terms of fuel, labor and maintenance. But most seats on the LA-NY flight cost more than $200 and US probably only offers that fare if it is afraid the seat would otherwise be empty. I can see the logic of airlines offering miles on the basis of dollars spent rather than miles flown, but any system will have arbitrary irrationalities.

By: Oliver

Oliver — Mon, 18 Feb 2008 18:38:13 +0000

Bryan, surely they only expire if you have no activity in your account for two years? There are countless ways to trigger activity. I usually use my car rental miles (50/day) to keep miles in secondary accounts alive that. That said, while I don’t know how far you’re from retirement, consider that miles tend to lose value over time (and not gain you any interest), so saving them for a long time may not be a wise strategy.

By: Bryan in San Francisco

Bryan in San Francisco — Mon, 18 Feb 2008 17:11:22 +0000

The type of change I hate the most is miles expiration! Delta does it now in two years. I want to save them up and travel the world when I’m retired.