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Old Oct 1, 2005, 11:11 am
  #16  
 
Join Date: Oct 2002
Location: Wilmington, NC, USA
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Given that Amex pays (I assume) Usairways for the miles, why would USairways not want to continue with the program?
bosco is offline  
Old Oct 1, 2005, 11:42 am
  #17  
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Originally Posted by bosco
Given that Amex pays (I assume) Usairways for the miles, why would USairways not want to continue with the program?
That must be a big assumption. So many airlines no longer, or have never, participated, that I suspect AMEX demands such a low price that it just isn't worth it to them. If the price was fair, there'd be no reason not to participate.
AZ Travels the World is offline  
Old Oct 1, 2005, 11:51 am
  #18  
 
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Originally Posted by AZ Travels the World
That must be a big assumption. So many airlines no longer, or have never, participated, that I suspect AMEX demands such a low price that it just isn't worth it to them. If the price was fair, there'd be no reason not to participate.
Airlines make a pile of money from infinity cards and mileage relationships. It's one of the few profitable areas of US Air. The credit card companies make money too. Amex's 9-figure financing of DL through MR b/c of the Skymiles card hammers that point home.

There is a chance that AWA's existing infinity and mileage relationships restrict them from this kind of relationship with Amex, or they want to re-negotiate b/c of their higher FF membership base with the combined carrier (there are economies of scale in this area that they should take advantage of with companies like Amex), or any number of other reasons. Let's hope at the end of the day they keep this relationship in tact.
DrivingRain is offline  
Old Oct 1, 2005, 12:02 pm
  #19  
 
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Looks like December is the time to transfer miles needed for 2006 to US. Hopefully by then, US and AMEX will have made a deal.
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Old Oct 1, 2005, 12:04 pm
  #20  
Moderator: American AAdvantage & Marriott Bonvoy
 
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Originally Posted by DrivingRain
Airlines make a pile of money from infinity cards and mileage relationships. It's one of the few profitable areas of US Air. The credit card companies make money too. Amex's 9-figure financing of DL through MR b/c of the Skymiles card hammers that point home. . .
No question. It's a big money maker for the airlines. To your point, Juniper Bank/Barclay's committed to the same type of deal with the new US, hence the forthcoming US Juniper Bank card.

It is certainly possible that deals like that include clauses preventing the airline from participating in programs like AMEX MR, as they're viewed as competitive. The message: If you want to earn miles from credit card purchases, you've got to do it with our card.

Additionally, though, I remember talking to a senior marketing guy at HP many years ago about about why they didn't participate in AMEX MR when it first came out. He said that the price AMEX was willing to pay for the miles just wasn't competitive.
AZ Travels the World is offline  
Old Oct 1, 2005, 2:59 pm
  #21  
 
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Wasn't this kind of a crap conversion rate anyway? something like 2k points = 1k miles? There are far better values for these points, regardless....
McFlyPHL is offline  
Old Oct 1, 2005, 3:53 pm
  #22  
 
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Originally Posted by McFlyPHL
Wasn't this kind of a crap conversion rate anyway? something like 2k points = 1k miles?
Most airlines are 1:1 with MR, but only 2:1 with MR Options. I wish AmEx had picked more distinctive names for the two programs.
choster is offline  
Old Oct 1, 2005, 4:30 pm
  #23  
 
Join Date: Oct 2002
Location: Wilmington, NC, USA
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This makes we wonder whether Usairways will also cancel their automatic "gold" membership with Amex Centurion card holders. I'll definitely switch to Delta if that happens, as they are the only other major airline to serve ILM.
bosco is offline  
Old Oct 1, 2005, 8:47 pm
  #24  
 
Join Date: Apr 2005
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Originally Posted by bosco
This makes we wonder whether Usairways will also cancel their automatic "gold" membership with Amex Centurion card holders. I'll definitely switch to Delta if that happens, as they are the only other major airline to serve ILM.
I would certainly call AMEX and ask
Sokol is offline  
Old Oct 1, 2005, 9:17 pm
  #25  
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If this is accurate, it would be another indication that the new management is making decisions based on its belief that it knows what's wrong with the place, and that it simply intends to implement changes as it sees fit. For their sake, I hope they are right.
deelmakur is offline  
Old Oct 3, 2005, 8:07 am
  #26  
 
Join Date: Aug 2002
Location: Atlantic Beach, Florida, USA
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Originally Posted by RDU-Man
page 5 of my statement

. . . effective January 1, 2006, USAirways will no longer participate in the Membership Rewards program . . .


Page 5 of my AmEx bill was filled with charges by my wife and daughter. I'll happily trade with you.
AtlanticBeach is offline  
Old Oct 3, 2005, 7:38 pm
  #27  
 
Join Date: Sep 1999
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"Page 5 of my AmEx bill was filled with charges by my wife and daughter"

Ouch!!

I started moving to Diners Club this year for their much larger variety of partners. The last straw for me was when Amex and Marriott parted ways. Diners
BillMorrow is offline  
Old Oct 4, 2005, 2:36 am
  #28  
 
Join Date: Jun 2004
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Originally Posted by bosco
This makes we wonder whether Usairways will also cancel their automatic "gold" membership with Amex Centurion card holders.
I called Centurion customer service yesterday and they inform me that Centurions will retain their US Airways Gold membership even though there will be no opportunity to transfer MR points to US Air.

Whew, I breathed a sigh of relief on that one!

Susan
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Old Oct 4, 2005, 2:44 pm
  #29  
 
Join Date: Dec 2003
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On my flight yesterday from LAX to CLT, the FAs were promoting a USAir Visa card from BoA -- offered some attractive benes. Maybe they make more $$ that way that with Amex MR...
SB_Travlr is offline  
Old Oct 4, 2005, 4:21 pm
  #30  
 
Join Date: Apr 2000
Location: Phila Delta ex-PM, ex-UA-PE
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A few years ago USAirways was supposed to be leaving MR at the end of the year, but due to 'overwhelming customer demand', then remainder. There's the possibility that could happen again, but since circumstances are different now (new management), I'm not sure I see it happening.

Question for people: it's been mentioned that AMEX hasn't wanted to pay the cost per mile that USAir (and other airlines) want. Would it be that bad for MR to have "2nd tier redemption rates", ie. still have 1 MR point = 1 Delta Skymile, but maybe 3:2 or 4:3 MR points to Dividend Miles. That at least still provides some decent conversion to other airlines. Other than Delta it seems like they are don't have affiliations with most of the big US carriers.

Jeff
jwhite4 is offline  


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