American Express and Delta Introduce The SkyPoints Credit Card
May 25, 2005, 12:05 pm
#1
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American Express and Delta Introduce The SkyPoints Credit Card
http://biz.yahoo.com/prnews/050525/nyw110.html?.v=10
NEW YORK, May 25 /PRNewswire/ -- American Express and Delta today introduced the SkyPoints Credit Card - a new rewards card that provides travelers with flexibility and savings on Delta airfare including Delta mainline, Delta Connection, Delta Shuttle, and Song. The SkyPoints Credit Card, available for consumers and small businesses, enables Cardmembers to earn SkyPoints that can be redeemed toward discounts, in the form of a statement credit from American Express, on Delta airline tickets. Cardmembers can redeem as few as 3,000 SkyPoints for 10 percent off and up to 20,000 points for 75 percent off the first $500 of the ticket price. The SkyPoints program will supplement the Delta SkyMiles frequent flier program by enabling Cardmembers to transfer SkyPoints to their SkyMiles account and continue to earn miles toward award travel to hundreds of destinations on Delta and its airline partners.
"We are delighted to launch the SkyPoints Credit Card and offer Delta customers a rewards program that is easily within their reach and on their terms," said Beth Lacey, senior vice president, Strategic Alliances and Cobrands for American Express. "In addition to allowing customers to quickly earn rewards on the Card, we're empowering customers to buy the airline ticket they want, where they want and have the option to save by redeeming SkyPoints. The SkyPoints Credit Card is a perfect complement to the American Express and Delta co-brand cards."
Cardmembers earn valuable SkyPoints on virtually every purchase and double SkyPoints for every eligible dollar spent on everyday purchases at supermarkets, gas stations, drugstores, home improvement and hardware stores, the U.S. Postal Service, for wireless phone bill payments and on Delta and Song purchases(1).
Cardmembers can redeem SkyPoints for a discount on the first $500 off any Delta or Song ticket(2):
* 3,000 SkyPoints equals a 10 percent savings
* 7,500 SkyPoints equals a 25 percent savings
* 15,000 SkyPoints equals a 50 percent savings
* 20,000 SkyPoints equals a 75 percent savings
SkyPoints can be redeemed for travel rewards that have no capacity-control restrictions, blackout dates or expiration dates. Cardmembers redeem points through three easy steps:
1. Shop for the lowest airfares on delta.com, flysong.com or another
online travel site; by phone or through a travel agent.
2. Use their SkyPoints Credit Card to purchase a Delta ticket of their
choice.
3. Contact American Express to redeem their discount when the ticket
charge appears on their monthly statement.
In addition, Cardmembers can transfer SkyPoints to their Delta SkyMiles account, with a minimum transfer of 1,000 points and no transfer fee.
"This Card is part of our continually evolving credit card program and an extension of our valuable partnership with American Express," said Jeff Robertson, Director of the SkyMiles program. "We're excited to offer a Card that provides our SkyMiles members a new way to earn travel rewards with Delta."
The SkyPoints Credit Card has no annual fee for the first year, with a $49 annual fee for subsequent years. Cardmembers receive a 2,500 SkyPoints welcome bonus(3) with their first purchase and another 2,500 upon first year renewal(4). For more information and SkyPoints program terms and conditions, or to apply for the SkyPoints Credit Card, visit americanexpress.com/skypoints or call 1-800-223-2670.
In addition to SkyPoints, the SkyPoints Credit Card offers a number of Cardmember benefits and services, including fee-free additional Cards, the ability to pay over time, Purchase Protection Plan(5), Buyer's Assurance Plan(6), Car Rental Loss and Damage Insurance Plan(7), emergency card replacement, Global Assist® Hotline travel benefits, Travel Accident Insurance(8) and access to 24-hour customer service. SkyPoints Business Cardmembers also receive Baggage Insurance(9) as well as access to valuable discounts through the OPEN Savings program(10). OPEN Savings gives Cardmembers automatic discounts when using their SkyPoints Business Card for a variety of purchases with select partners that provide long distance service, express shipping, car rentals and business supplies, among many other choices.
NEW YORK, May 25 /PRNewswire/ -- American Express and Delta today introduced the SkyPoints Credit Card - a new rewards card that provides travelers with flexibility and savings on Delta airfare including Delta mainline, Delta Connection, Delta Shuttle, and Song. The SkyPoints Credit Card, available for consumers and small businesses, enables Cardmembers to earn SkyPoints that can be redeemed toward discounts, in the form of a statement credit from American Express, on Delta airline tickets. Cardmembers can redeem as few as 3,000 SkyPoints for 10 percent off and up to 20,000 points for 75 percent off the first $500 of the ticket price. The SkyPoints program will supplement the Delta SkyMiles frequent flier program by enabling Cardmembers to transfer SkyPoints to their SkyMiles account and continue to earn miles toward award travel to hundreds of destinations on Delta and its airline partners.
"We are delighted to launch the SkyPoints Credit Card and offer Delta customers a rewards program that is easily within their reach and on their terms," said Beth Lacey, senior vice president, Strategic Alliances and Cobrands for American Express. "In addition to allowing customers to quickly earn rewards on the Card, we're empowering customers to buy the airline ticket they want, where they want and have the option to save by redeeming SkyPoints. The SkyPoints Credit Card is a perfect complement to the American Express and Delta co-brand cards."
Cardmembers earn valuable SkyPoints on virtually every purchase and double SkyPoints for every eligible dollar spent on everyday purchases at supermarkets, gas stations, drugstores, home improvement and hardware stores, the U.S. Postal Service, for wireless phone bill payments and on Delta and Song purchases(1).
Cardmembers can redeem SkyPoints for a discount on the first $500 off any Delta or Song ticket(2):
* 3,000 SkyPoints equals a 10 percent savings
* 7,500 SkyPoints equals a 25 percent savings
* 15,000 SkyPoints equals a 50 percent savings
* 20,000 SkyPoints equals a 75 percent savings
SkyPoints can be redeemed for travel rewards that have no capacity-control restrictions, blackout dates or expiration dates. Cardmembers redeem points through three easy steps:
1. Shop for the lowest airfares on delta.com, flysong.com or another
online travel site; by phone or through a travel agent.
2. Use their SkyPoints Credit Card to purchase a Delta ticket of their
choice.
3. Contact American Express to redeem their discount when the ticket
charge appears on their monthly statement.
In addition, Cardmembers can transfer SkyPoints to their Delta SkyMiles account, with a minimum transfer of 1,000 points and no transfer fee.
"This Card is part of our continually evolving credit card program and an extension of our valuable partnership with American Express," said Jeff Robertson, Director of the SkyMiles program. "We're excited to offer a Card that provides our SkyMiles members a new way to earn travel rewards with Delta."
The SkyPoints Credit Card has no annual fee for the first year, with a $49 annual fee for subsequent years. Cardmembers receive a 2,500 SkyPoints welcome bonus(3) with their first purchase and another 2,500 upon first year renewal(4). For more information and SkyPoints program terms and conditions, or to apply for the SkyPoints Credit Card, visit americanexpress.com/skypoints or call 1-800-223-2670.
In addition to SkyPoints, the SkyPoints Credit Card offers a number of Cardmember benefits and services, including fee-free additional Cards, the ability to pay over time, Purchase Protection Plan(5), Buyer's Assurance Plan(6), Car Rental Loss and Damage Insurance Plan(7), emergency card replacement, Global Assist® Hotline travel benefits, Travel Accident Insurance(8) and access to 24-hour customer service. SkyPoints Business Cardmembers also receive Baggage Insurance(9) as well as access to valuable discounts through the OPEN Savings program(10). OPEN Savings gives Cardmembers automatic discounts when using their SkyPoints Business Card for a variety of purchases with select partners that provide long distance service, express shipping, car rentals and business supplies, among many other choices.
May 25, 2005, 12:28 pm
#2
Join Date: Apr 2002
Location: New York, NY
Posts: 254
The web site is http://www.americanexpress.com/skypoints I'm not sure I like the design of the card, it looks so plain without the SM logo. Sounds like an interesting card concept, doubt I will apply for it 
May 25, 2005, 1:00 pm
#3
Join Date: Dec 2002
Location: Shanwick
Posts: 3,117
I suspect that the liability for the "Skypoints" sits with AMEX. Could AMEX be looking to introduce other airlines that the points can be used with too?
If 20,000 Skypoints gets you 75% off a $500 fare then the value looks to max at around $0.01875 / Skypoint ignoring the miles earned on the ticket purchase itself.
If 20,000 Skypoints gets you 75% off a $500 fare then the value looks to max at around $0.01875 / Skypoint ignoring the miles earned on the ticket purchase itself.
May 25, 2005, 1:38 pm
#4
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Not sure I understand how it is a complement to SkyMiles AMEX, seems more like a replacement. Do you want to earn SkyPoints for dollars off a ticket that allows you to earn miles or do you want to redeem points for free travel all together. That seems like the real thing here.
May 25, 2005, 2:22 pm
#5
Join Date: Mar 2004
Location: Orem, UT, USA
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Posts: 413
This seems like a strange card. I can see some of the benefits (for 20K points you could get an intl coach ticket for $125 bucks, assuming you got one of the sale tickets that pop up from time to time) and there aren't capacity restrictions on the discounts...of course, if those are miles bearing tickets, that's not too bad at all.
May 25, 2005, 2:33 pm
#6
Join Date: Apr 2005
Location: ORD
Programs: DL FO...ex-PM, GM...does it really even matter these days? LOL...
Posts: 1,248
Unless I didn't read closely...a few questions:
*Is this card replacing the Skymiles card?
*Will this card be tiered like the Skymiles card (Regular, Gold, Platinum)?
*Is there an annual fee for this card?
*Can you apply the Skypoints across all fares, including F?
Please point me in the right direction if I missed these answers on the AMEX site...
*Is this card replacing the Skymiles card?
*Will this card be tiered like the Skymiles card (Regular, Gold, Platinum)?
*Is there an annual fee for this card?
*Can you apply the Skypoints across all fares, including F?
Please point me in the right direction if I missed these answers on the AMEX site...
May 25, 2005, 3:00 pm
#7
Join Date: Mar 2002
Location: Madison, NJ
Programs: DL PM, Marriot Platinum
Posts: 2,560
Did anyone see anything saying you can trade in Skypoints for Skymiles??? I dod not see that mentioned on the site.
All-in-all, looks kind of lame to me:
I can trade in 3,000 points (approximately $3,000 in spending) to receive at the most $50 off. That is about a 1.67% return approximately. Not so sure if that is good or not.
All-in-all, looks kind of lame to me:
I can trade in 3,000 points (approximately $3,000 in spending) to receive at the most $50 off. That is about a 1.67% return approximately. Not so sure if that is good or not.
May 25, 2005, 3:01 pm
#8
Join Date: Sep 2004
Posts: 859
Originally Posted by sorro
This seems like a strange card. I can see some of the benefits (for 20K points you could get an intl coach ticket for $125 bucks, assuming you got one of the sale tickets that pop up from time to time) and there aren't capacity restrictions on the discounts...of course, if those are miles bearing tickets, that's not too bad at all.
May 25, 2005, 3:04 pm
#9
Join Date: Mar 2002
Location: Madison, NJ
Programs: DL PM, Marriot Platinum
Posts: 2,560
Originally Posted by crazygrow
If I had to make an educated guess, the discount probably can't be used on most discounted tickets.
Originally Posted by DarthVader
SkyPoints can be redeemed for discounts offof the first $500 of a Delta or Song ticket. There are no flight restrictions or black out dates. So enjoy the nearly 500 destinations in over 80 countries worldwide you can visit when you fly Delta or Song.
May 25, 2005, 3:14 pm
#10
Suspended
Join Date: Jan 2005
Posts: 270
Obviously a response to the David Spade Capital One No Hassle Card.
My question is why would anyone keep the $85/year Skymiles AMEX when they can get the same thing for the $49/year Skypoints AMEX and have the option of using for flight discounts or exchanging into skymiles.
My question is why would anyone keep the $85/year Skymiles AMEX when they can get the same thing for the $49/year Skypoints AMEX and have the option of using for flight discounts or exchanging into skymiles.
May 25, 2005, 3:27 pm
#11
Join Date: Apr 2000
Location: Phila Delta ex-PM, ex-UA-PE
Posts: 2,659
There's no mention what the exchange rate would be. I'd expect to see 2 SkyPoints gets you 1 SkyMiles.
Jeff
Jeff
May 25, 2005, 4:06 pm
#12
Join Date: Oct 1999
Posts: 300
With an AMEX $49 annual fee I would suspect the Skypoints card to be competitive with the other airline cards with annual fees in $50 - $85 range, the mile earning would be one dollar would equal one skymile. It does appear the signup bonus of 2,500 miles is sure on the low side.
However, the next step for AMEX would be a free skypoint card with 1 skypoint earned for every $2. This would be competitive to the AA Bronze Citicard with no annual fee and a $2 to 1 AA mile ratio.
All in all it looks like AMEX is trying to recoup more of its "investment" in DL.
However, the next step for AMEX would be a free skypoint card with 1 skypoint earned for every $2. This would be competitive to the AA Bronze Citicard with no annual fee and a $2 to 1 AA mile ratio.
All in all it looks like AMEX is trying to recoup more of its "investment" in DL.
May 25, 2005, 4:20 pm
#13
Formerly known as fsa_ea
Join Date: Dec 2004
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Posts: 2,229
Sounds like a sweet deal to me
Unless I'm missing something, this sounds like a great deal!
As long as you are buying a ticket for under $500, the 75% discount for 20,000 points is the same rate of discount as a 100% discount (ie, award ticket) for 26,667 points. That is merely 6.7% more than a SkySaver ticket and a whopping 46.7% less than a SkyGouger ticket. Plus, if you are GM or PM, you would earn a minimum of 2,000 SkyMiles per round trip, which would more than offset the extra 1,667 points required over a SkySaver award. On top of all that, you would still be eligible for upgrades (unlike a coach award ticket), you would still earn MQMs, and you would not be subject to SkySaver/SkyGouger capacity controls. Finally, as already pointed out, the annual fee is less than the current Gold and Platinum Delta SkyMiles cards.
So, am I missing something here?
As long as you are buying a ticket for under $500, the 75% discount for 20,000 points is the same rate of discount as a 100% discount (ie, award ticket) for 26,667 points. That is merely 6.7% more than a SkySaver ticket and a whopping 46.7% less than a SkyGouger ticket. Plus, if you are GM or PM, you would earn a minimum of 2,000 SkyMiles per round trip, which would more than offset the extra 1,667 points required over a SkySaver award. On top of all that, you would still be eligible for upgrades (unlike a coach award ticket), you would still earn MQMs, and you would not be subject to SkySaver/SkyGouger capacity controls. Finally, as already pointed out, the annual fee is less than the current Gold and Platinum Delta SkyMiles cards.
So, am I missing something here?
May 25, 2005, 6:09 pm
#14
Join Date: Mar 2004
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Originally Posted by fsa_ea
Unless I'm missing something, this sounds like a great deal!
As long as you are buying a ticket for under $500, the 75% discount for 20,000 points is the same rate of discount as a 100% discount (ie, award ticket) for 26,667 points. That is merely 6.7% more than a SkySaver ticket and a whopping 46.7% less than a SkyGouger ticket. Plus, if you are GM or PM, you would earn a minimum of 2,000 SkyMiles per round trip, which would more than offset the extra 1,667 points required over a SkySaver award....
As long as you are buying a ticket for under $500, the 75% discount for 20,000 points is the same rate of discount as a 100% discount (ie, award ticket) for 26,667 points. That is merely 6.7% more than a SkySaver ticket and a whopping 46.7% less than a SkyGouger ticket. Plus, if you are GM or PM, you would earn a minimum of 2,000 SkyMiles per round trip, which would more than offset the extra 1,667 points required over a SkySaver award....
Two examples:
Domestic ticket priced $420. With SkyPoints, I need 20000SP+$105. With SkyMiles, it is 25000SM. It is true that to obtain those SkyMiles I have spent 5000 more dollars, but I got merchandise/services in return for those.
International ticket at $1000. SP: 20000SP+$625. SM: 50000SM.
Don't know, it seems to me that SP's have a maximum value of $0.01875 (in fact, they are worth $0.01575 in the "domestic" example above). SM's have comparable values ($0.0168 and $0.02, in the two examples), but they can be worth substantially more by using them for expensive tickets.
If we bring in F and Biz tickets, then the value of SkyMiles soars, while SkyPoints stay the same.
May 25, 2005, 6:21 pm
#15
Join Date: Jan 2005
Location: NYC
Programs: DL, SPG (Gold)
Posts: 2,039
Originally Posted by thesaints
Can't understand your calculation.
1 RT coach class ticket from NYC to Hawaii $600
20,000 Skypoints reduces that fare to $225
10,524 MQMs earned
10,524 base Skymiles + Medallion bonus + Online booking bonus earned (max = 22,048 Skymiles)
That looks like a pretty good deal to me.
A.J.