US Airways today is expected to reverse course on a number of unpopular changes it recently made to its Dividend Miles frequent flier program. But the airline remains committed to so-called “a la carte” fees for which it has been criticized by passengers.
In a memo sent late yesterday to employees, the airline says it will reinstate bonus miles and 500 minimum mile accrual benefits for customers with Preferred membership. US Airways also says it is “very pleased” with the customer response to its new fees, and that it is committed to keeping them in place.
Here’s the press release. Here’s the memo in its entirety:
On Nov. 20, we are reinstating the following Dividend Miles member benefits:
* Preferred member Bonus Miles accrual
* Preferred member 500 minimum miles accrual
* US Airways Shuttle 500 minimum miles accrual for all membersPreferred Member Bonus Miles:
Beginning November 20, Dividend Miles Preferred members will receive bonus miles commensurate with their Preferred status level. US Airways Dividend Miles members earn and retain Preferred status when they purchase and fly at least 25,000 miles or 30 segments within a calendar year. Retroactive credit will appear in Preferred members’ December Dividend Miles account statements for bonus-qualifying travel between August 6, 2008 and Nov. 19.
500 Minimum Miles Accruals:
In addition to reinstating the 500 minimum miles accrual that Preferred members will receive for every segment flown, beginning Nov. 20 all Dividend Miles members will receive 500 minimum miles per segment on US Airways Shuttle flights (flights between Washington, New York and Boston). Preferred and US Airways Shuttle 500 minimum miles accruals will be retroactively credited for qualifying flights taken between May 1, 2008 and Nov. 19. The retroactive credit will appear in members’ December Dividend Miles account statements.
Why are we making these changes?
We constantly review our program to ensure that we are providing the best possible value to our members. Our Dividend Miles Program members are extremely important to us and these changes reflect our continued commitment to delivering the best product with the most value to our customers.
As a line employee, and someone who reads message boards, we’ve certainly heard some negatives about our program and the changes implemented over the past year, what does the data say about our members’ behavior? Put another way, are we hoping to retain the members we have today, regain some we may have lost or attract new members?
Great question and the short answer here is…yes, all three of those are goals for us! We really do listen very carefully to the feedback from our Dividend Miles members, and we take their comments and suggestions very seriously. We also look at our program in the context of the competitive landscape and, separately, as a standalone program. We don’t want our customers to feel ambivalent about being a member (“it’s as good as everyone else I guess”) but rather we want them to feel they are getting value for what they’re paying, and they need to feel value whether they’re comparing it to the competitions’ programs or not. So that’s all a long way of saying that we’ll keep looking at our program, keep listening to our customers, and we’ll make changes along the way. Our customers have stood by us through thick and thin, and with the economic concerns all around us, we’re going to reward their loyalty often and in ways that we hope surprise and delight them.Does this mean that we’ll start retracting our other a la carte pricing initiatives?
No. We’ve been very pleased with customer response to these initiatives and the positive financial and operational impact they are making. Our a la carte pricing strategy is a cornerstone of our new business model and critical strategy for persevering in this period of economic uncertainty and volatile fuel prices.
Bonus and 500 Minimum Miles Program Questions
How many bonus miles will Preferred members receive now?
Beginning Nov. 20, Dividend Miles Preferred members will receive bonus miles commensurate with their Preferred status level. Retroactive credit will also appear in Preferred members’ December Dividend Miles e-statements for bonus-qualifying travel between August 6, 2008 and Nov. 19. The chart below explains both the minimum requirements for the four levels of Preferred status and the corresponding mileage bonus.
US Airways Dividend Miles Program Preferred Status Eligibility and Bonus Accruals
Preferred Status Level Preferred Status Qualifications Bonus Miles Premium (bonus % of base miles earned)
Silver 25,000 annual flight miles, OR30 flight annual flight segments 25% Gold 50,000 annual flight miles, OR60 annual flight segments 50% Platinum 75,000 annual flight miles, OR90 annual flight segments 75% Chairman’s Preferred 100,000 annual flight miles, OR120 annual flight segments 100%
How will retroactive Preferred bonuses be credited to a member’s account?We’ll calculate how many additional bonus miles Preferred members would have earned and post an adjustment for each segment flown during the period. Those miles will be reflected in the ‘miles earned’ section of members’ December e-Statement.
Will Dividend Miles members receive a minimum of 500 miles per segment when they fly on US Airways’ partner airlines?
Preferred members will earn a minimum of 500 miles on most partner flights. Special rules apply to certain operating carriers and classes of service .Dividend Miles members who do not hold Preferred status will not be impacted by these changes—they will continue to earn the actual miles flown. All Dividend Miles members will now earn a minimum of 500 miles on US Airways Shuttle flights (which services flights between Washington, D.C., New York and Boston).
How will the retroactive 500-mile segment minimums from May 1 through Nov. 19, 2008, be credited to members’ accounts?
Preferred members will earn segment minimums of 500 miles for all US Airways flights. All members who flew on US Airways Shuttle (between DCA, LGA and BOS) will earn segment minimums of 500 miles. We will calculate how many additional miles members would have earned and post an adjustment for each segment flown during the period. Those miles will be reflected in the ‘miles earned’ section of your December e-Statement.
Will members’ advance in Preferred status when the 500-mile segment minimums are posted retroactively?
Since segment minimum mileage counts toward Preferred status, members’ Preferred level may go up when the segment minimums are retroactively posted. Members’ most up-to-date Preferred status will be reflected in members’ December e-Statements.
General Questions about the Dividend Miles Program and Preferred Status
What is the Dividend Miles Program?
Dividend Miles is our frequent flyer customer loyalty program. It enables our customers to earn miles that can be redeemed for future travel and upgrades (among many other benefits). Additional information about the Dividend Miles Program is available at www.dividendmiles.com.
What do you mean by Preferred status?US Airways Dividend Miles members earn and retain Preferred status when they purchase and fly at least 25,000 miles or 30 segments within a calendar year. US Airways Dividend Miles Preferred members enjoy benefits like the most generous upgrade window in the industry, free first and second checked bags, access to Choice Seat assignments and more. The chart below outlines the qualifications for the four tiers of Preferred status within the Dividend Miles Program:
Preferred Status Level Preferred Status Qualifications Silver 25,000 annual flight miles, OR 30 flight annual flight segments
Gold 50,000 annual flight miles, OR 60 annual flight segments
Platinum 75,000 annual flight miles, OR 90 annual flight segments
Chairman’s Preferred 100,000 annual flight miles, OR 120 annual flight segments
Information about the US Airways Dividend Miles Program and membership benefits is available at www.dividendmiles.com.
When can a customer expect their Preferred status to be reflected in their existing reservations?
Typically members who advance in Preferred status can expect their existing reservations to be updated within seven days of when their status changes.
How long is a customer’s Preferred status valid?
Members who meet the published requirements for Preferred status during the 2008 calendar year will enjoy their status through Feb. 28, 2010.
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YAY! I am glad my nasty letter to Doug Parker worked! LOL :)
Anita
Why are we making these changes?
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Easy answer!
NO ONE FOLLOWED THESE REDUCTIONS OR KEPT THEM.