50% Bonus Dividend Miles: Transfer Hotel Points or Share Miles

Photograph ©istockphoto.com by Flightlevel80.

There are two separate offers where you can earn a 50 percent bonus on US Airways Dividend Miles, both of which are effective through April 30, 2013.

US Airways launched a promotion today where you can earn 50 percent bonus Dividend Miles when you convert your points from nine of the most popular frequent guest loyalty programs. Curiously — unlike last year — Starwood Preferred Guest seems to be excluded from this promotion. Dividend Miles members can earn only one bonus throughout the duration of the promotion.

Last year, I opined that I was not participating in this promotion because I was not an elite member with Preferred status with the US Airways Dividend Miles frequent flier loyalty program, which meant that in order for me to redeem my Dividend Miles, I had to pay a non-refundable “award processing fee” anywhere between $25.00 and $50.00 — and I believe that is still true today. I did that exactly once when I redeemed my Dividend Miles for an award ticket several years ago.

However — due to the pending merger with American Airlines — there is a possibility that that policy could change. Also — with many additional destinations to which those frequent flier loyalty program miles can be used — the Dividend Miles themselves are potentially worth more, in my opinion. Of course, this is contingent upon the frequent flier loyalty program miles from both airlines can be combined, which I fully expect will happen once the merger is completely approved.

I would think about participating in this promotion if you have hotel points which you would rather use as US Airways Dividend Miles — or, more importantly, in my opinion — eventually as American Airlines AAdvantage frequent flier loyalty program miles in the future.

The second promotion is not exactly thrilling FlyerTalk members where you can receive a 50 percent bonus on the amount of Dividend Miles shared with the latest promotion by US Airways — but the promotion is capped at 25,000 Dividend Miles, as follows:

  • Share 10,000 Dividend Miles and your recipient will receive 15,000 Dividend Miles
  • Share 30,000 Dividend Miles and your recipient will receive 45,000 Dividend Miles
  • Share 50,000 Dividend Miles and your recipient will receive 75,000 Dividend Miles

 

Once you factor in the $30.00 fee and 7.5 percent in taxes which you will pay of you take advantage of this promotion, you will pay $0.0227 for those bonus Dividend Miles if you share the full 50,000 bonus.

All purchases are non-refundable. This offer is not valid for US Airways Dividend Miles accounts fewer than twelve days old, so if you do not have a US Airways Dividend Miles account yet and want to take advantage of this promotion, register for an account now. Other restrictions may apply.

I do not plan to participate in the second promotion. Thank you anyway, US Airways…

Comments (Showing 2 of 2)

  • starflyer at 6:16pm April 01, 2013

    I do not understand what 7.5% tax is being charged when I share miles. I have to pay 7.5% tax when buying miles, and then another 7.5% to transfer these already taxed miles to someone else? Do I have to pay a 7.5% tax when redeeming miles for an award too? Will Delta start charging a 7.5% tax when I die and have unused miles in my account?

  • relangford at 8:33pm April 02, 2013

    Not a good deal. I just exchanged 100,000 HiltonHonors points for 15,000 AA miles with no tax or fee.

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