http://www.mercurynews.com/mld/mercu...l/15821851.htm

Posted on Sun, Oct. 22, 2006
Airlines squeezing frequent-flier programs
By Ed Perkins
Airlines never sleep when it comes to weakening their frequent-flier programs. The latest broadside, from US Airways, cuts in half -- from three years to 18 months -- the time it allows frequent fliers to retain their miles without any account activity.

Frequent fliers on US Airways should be furious; frequent fliers on other airlines should be apprehensive. If we've learned anything lately about frequent-flier programs, it's that the worse the idea, the faster it's copied. Watch the fine print in your line's program to see if (or, more likely, when) it copies this latest ``revoltin' development.''

(Note: Delta is cutting the lifespan of frequent-flier miles down to two years from three and has instituted a retroactive deadline, the New York Times reported. On Dec. 31, miles in SkyMiles accounts that haven't been touched over the last two years will expire.)

I'm a US Airways frequent flier, but I don't recall receiving a notice about this latest assault on fairness. Nor did I find any recent press release postings. But if you look at the program fine print, you'll see this: ``Effective December 1, 2006, active membership status is based on having earned or redeemed miles within a consecutive 18 month period. With our new Mileage Reactivation Policy, Dividend Miles members have an opportunity to reinstate their Dividend Miles accounts to active status for an additional 18 months for a $50 processing fee and reactivation fee of $.01 per mile. If members do not extend with this reactivation option, the Dividend Miles account will be closed and all miles forfeited.''

Clearly, US Airways and the other legacy airlines have forgotten the basic precept that loyalty should work both ways. Granted, you've never had an easier time ``earning'' miles; they've clearly become an important second currency among American travelers. But at the same time, the big lines inundate you with extra-miles promotions, they make it almost impossible for you to find seats -- especially those cherished upgraded business-class and first-class seats.

Knowing how tough they've made it to score ``free'' trip seats, some big lines are pushing non-travel ``rewards'' as an alternative way for you to work off your credit balances. But when you take a close look, you usually find that the ``prices'' of those non-travel rewards -- services and merchandise -- work out to an exchange rate for points that is less than the 1 cent per mile minimum that the airlines get for selling points to banks and other merchants that use them as premiums.

That's one of the reasons why I have suggested that people who earn miles mainly through their credit cards should seriously think about switching to cards that offer other rewards or cash back.

Otherwise, concentrate on making sure you don't get ``timed out'' of your backlog of miles. You don't have to do much; you can make a small purchase that awards miles, a small deduction for something or even buy a little additional credit, though you may have to pay the gouge price of 2 1/2 cents a mile.


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Contact Ed Perkins at [email protected].