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Super United Card (5/25/00)
FULL STORY:
The merger of United Airlines and US Airways will undoubtedly give
frequent flyer members the ultimate in earning power and travel
flexibility. It will also be a bonanza for holders of the bank credit card
versions of each program. The current United Airlines Mileage Plus program
offers members the ability to earn and redeem miles through its Star
Alliance and Partners program. Star Alliance participating airlines
include Air Canada; Air New Zealand; All Nippon Airways; Ansett Australia;
Lufthansa; SAS; THAI; and VARIG. Airlines partners include Aeromar; Air ALM;
Aloha Airlines; British Midland; Cayman Airways; Delta Air Lines; LAPA;
Mexicana; Saudi Arabian Airlines; and Singapore Airlines. The US Airways
Dividend Miles program has similar relationships with other airlines
whereby members can rack up miles. US Airways airline partners include
Alitalia; Austrian Airlines; Latin Pass; Northwest Airlines; Qantas;
Sabena; and Swissair. It is not clear which partnerships will continue
after the merger since some of partners from each airline are direct
competitors. But what is clear it that members of both airline programs
will be able to earn and redeem travel credit throughout the world through
a single program.
US Airways Dividend Miles members can reasonably expect to receive full
credit from United for all miles earned to-date. This could be bad news for
United Mileage Plus cardholders, since it increases competition for the
most desirable seats to the choicest destinations.
What happens to the bank credit card programs is unclear. Bank One/First
USA handles the United program while Bank of America runs the US Airways
bank card program. It may take a while to combine the programs. Both
programs have similar pricing structures, however the annual fee for the
basic United Airlines Mileage Plus VISA is $10 more per year than the US
Airways Dividend Miles VISA. Once the frequent flyer programs have been
combined there is no doubt it will become a super United program.
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