In an exclusive news feature, we are announcing that US Airways will end their frequent flyer relationship with the American AAdvantage program as of Aug. 23, 2001. Until that point, it is frequent flyer as normal. Members of the US Airways program will continue to earn and redeem miles and rewards with American and can extend award redemption 320 days past the Aug. 23, 2001 date if they wish.

This may be a direct result of the continuing efforts by both United and US Aiways to complete their merger.

More on this story over the next day or so.

I can't say I'm happy about that! But, I've been expecting this for some time now, I'm actually surprised that this is so far out in the future...

Thanks for the info, Randy.

d

It does surely seem that it is a result of the continuing efforts by both UA & US to complete their merger plans!

Thanks for the timely info, Randy!

And if the United deal doesn't go through....then what? I take it that this is not conditional.

Thanks, Randy! I, too, am just glad they gave us enough time to plan!

Thanks for the news... it's good to have a date to plan towards. The question is if the merger goes through, and Dividend Miles become Mileage Plus miles on some given day, will that cut short the August 23 date?

Thanks for the advance worning Randy! Now we can think of ways to use our awards before its not too late. It sure looks like UA is ready for the merger. Thanks for the post.

------------------
MRKEY

I wonder if there will be a rush to redeem miles and how that will impact availabilty of award seats?

The flip side is that the merger doesn't go thru and US ends up with one less partner and one less benefit to its FF members.

This seems to indicate that UA and US believe the merger will go through. This is a bit OMNI, but doesn't that make US Airways stock look interesting at $31 when the buyout price is $60 cash?

Full disclosure: I currently own US Airways stock.

Disclaimer: I am not an investment professional. No one should act based on my opinion!

Thanks Randy,

I can't say that this is surprising. I wonder if US Air miles not redeemed will roll over to United Miles IF the merger goes through?

MileCollector,

it states on both USAir and UAL homepages that Dividend Miles will be converted into Mileage plus miles. If you have an account with both airlines, you can pool your miles into one Mileage Plus account.

The AA.com site is now generating an error message when you look for information about awards on US. Maybe they are updating it reflect Randy's scoop.

I just received this email:

We are committed to keeping you informed of changes related to the Dividend
Miles program in a forthright and timely manner.

The latest information related to the pending merger of US Airways and United
Airlines can be found at http://www.usairways.com/corporate/uaus/index.htm . The
web site is being updated regularly, as new information becomes available, in
order to provide you with the most complete and up-to-date information. The
regulatory approval process for the merger is currently underway. US Airways and
United Airlines remain fully committed to the merger and to delivering the
significant consumer benefits that it will bring.

In addition to merger news, American Airlines has decided to end the frequent
flyer and club relationships between US Airways Dividend Miles and American
Airlines AAdvantage, and US Airways Club and American Airlines Admirals Club
programs on August 23, 2001. We are discussing a transition plan with American
and this final date is subject to change. We will keep you advised as the plan
is completed. Until the official final date is determined, the reciprocal award
redemption, combining of miles and club relationship benefits you have come to
enjoy will, of course, remain in place. The US Airways Shuttle 500 mile bonus
promotion will continue until December 31, 2000, as scheduled.

US Airways is committed to providing you with world-class service, including a
frequent flyer program that is second to none. On behalf of the 45,000 women and
men of US Airways, I want to thank you for your business and continued loyalty.

Sincerely,

B. Ben Baldanza
Senior Vice President, Marketing

[my original post was redundant to dhacker's above]


[This message has been edited by ontheroad (edited 10-06-2000).]

The rumour, and it's ONLY that, is now that US will actually be joining the *A - merger or no merger!

[This message has been edited by doc (edited 10-20-2000).]