By Ed Perkins

US Airways' recently announced frequent-flyer program might well represent the future direction for all the big airlines. Following Delta's move to a three-tier program, US Airways will go to four award levels. As usual, the airline touts its move as a "benefit," but most of you will probably have to use more miles for your award trips than before.

Starting with reservations made Jan. 6, you'll still be able to get at least some awards for the same mileage as now, or even a bit fewer, but overall levels will increase. Instead of the familiar two levels -- "saver," with very few seats, and regular, for almost any available seat -- the four new levels will be "off peak," available on some routes, plus "low," "medium," and "high" everywhere. They'll be based on season, day of week, and arbitrary allocations. Here's how it works out for round trips on the three most popular award routes, in thousands of miles:

-- Domestic 48 states. In coach: low, 25, medium, 40, and high, 60. In first class: low, 50, medium, 80, high 100. The minimum "low" awards are the same levels as current "mileage saver" awards, with no "off peak" awards in either class, but the top coach award increases from 50 to 60 thousand miles.

-- Domestic 48 states to Hawaii. In coach: low, 40, medium, 65, high, 90. In first class: low, 70, medium, 135, high, 180. The new lows and highs are all up from today's levels, with no "off peak" awards in either class.

-- North America and Hawaii to Europe. In economy: off-peak, 35, low, 60, medium, 90, high, 125. In business class: off-peak, 60, low, 100, medium, 200, high, 350. "Off peak" levels are actually below current "saver" levels, but all the others are higher -- a lot higher for business class, where the "high" award more than doubles to an astronomical 350,000 miles.

You can mix and match: go one way and return at different levels, each at half the round-trip requirement. So far, the airline has not announced any changes in upgrade mileages, but those could change, as well.

US Airways' new low, medium, and high award levels are in pretty close agreement with Delta's new three-tier structure, although Delta doesn't offer the reduced "off peak" option. And they're reasonably close to American's more conventional award system, although American does post different peak/off-peak mileage requirements for 48 states to Hawaii and North America to Europe. So far, Continental, Delta, and United have stuck with their traditional two-tier structures.

The other trend among frequent-flyer programs is charging fees for upgrade awards. So far, US Airways' new schedule retains the $300 fees each way for upgrade awards to Europe or the Middle East. Among the other big lines:

-- American is increasing "co-pay" fees for 48-state and Hawaii upgrades, and it charges co-pays on almost all upgrades from "discount" economy fares.

-- Continental charges upgrade fees from most fares to Hawaii or Europe.

-- Neither Delta nor United has added upgrade fares, at least not yet.

Loyalty to the sponsoring airline has long since ceased to be the major objective of frequent flyers programs' "free trips" elements: Instead, the programs have become cash cows, as airlines sell more and more miles to banks and other merchants. And given the flood of miles they're issuing, the airlines want to make you burn more miles for each trip you take. That's why I expect the other big lines to follow Delta's and US Airways' leads and move to mileage-burning three-tier or four-tier award schedules.

Realistically, given the airlines' current financial crunch, it's a sure bet that you'll either have to pay more miles for each "free" trip or find fewer seats for low-miles awards -- and maybe pay some new fees, too. For travelers, it's another lose-lose proposition, which is just what the airlines want. Maybe the three- and four-tier award schedules actually will make it easier to get seats for reasonable numbers of miles. I'm skeptical, but stranger things have happened.

 

© Ed Perkins

Travel | Is This the Future for Frequent Flyers