American Doesn’t Know When AAdvantage and Dividend Miles Will Combine

My running assumption has been that Dividend Miles and AAdvantage — and indeed US Airways and American — would combine either the last weekend of February or the first weekend of March 2015.

It will have been about 15 months since the merger was consummated (and there was plenty of preparatory work done in the time leading up to that, especially as the question of the merger dragged on due to the Department of Justice’s anti-trust lawsuit).

And it’s a relatively slow time for travel. It’s the window that United-Continental, Northwest-Delta, and America West-US Airways used.

But the tasks of combining airlines are gargantuan. The America West-US Airways combination was initially an operational disaster (I’m strange enough to have consciously opted to fly US Airways that weekend — everyone was told to check in online, but the website didn’t work and neither did the kiosks).

So they haven’t committed to a timeframe. They could certainly do it 11 months from now, but they’re waiting to make a decision to see the progress they’ve made.

This has several implications:

  • The longer they take, the more they will align AAdvantage and Dividend Miles before the combination actually occurs.
  • The chances are increased that they’ll allow members to move miles back and forth and obtain reciprocal status in the programs as an interim members.
  • We don’t know whether elite qualifying miles in Dividend Miles and AAdvantage will be combined.

When I spoke with AAdvantage President Suzanne Rubin last week I asked about the elite qualifying miles issue.

It’s been reported that American and US Airways elite qualifying miles from a given year would be combined towards status in the following year when the programs are combined.

And it’s been reported that this would not happen as well.

Both positions have been attributed either to American statements or to American or US Airways website claims.

In fact, nothing has been decided and Suzanne suggested that it will will ultimately depend on when the progams combine.

She then explained that they would probably need to combine elite qualifying balances if the programs themselves were combined during a program year (eg combined in March or September) but not necessarily if there was a clean break into a new program on, say, January 1.

Personally if I were running the programs I would combine them either way, but that doesn’t seem to be how they’re thinking about things. And more importantly this answer suggests that they haven’t decided what they’re going to do yet, it’s one of the many open questions as the programs gradually align and prepare to combine.


About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. @ Gary — I’ve never understood why you were so certain that qualifying activity would combine at the end of 2014. Based on what’s been said so far by US/AA, that’s a pretty dangerous assumption and not one I am relying upon. I would hate to get to December and find myself with 80k EQM at US and 20k EQM at AA. Instead, I am shooting for 100k US (mostly from UA and AA flights) and will end up with maybe 10k at AA (so far just an original routing credit from being re-booked to Delta, and possibly more if I need to use “stickers”).

  2. I read her comments to mean that unless they combine prior to January 1, there won’t be a combining of 2014 EQMs. If they combine during 2015, they would combine 2015 EQMs.

  3. @Gene – if it was a March combination it’s hard to imagine a no universe in which they wouldn’t combine. And it’s been hard to imagine a scenario where wouldn’t force the combination in March. But Parker hsa said — correctly — that they’re going to see where they are and not make the same mistake they made with US/HP (and that they watched United/Continental make).

    So they’re not committing to a date at this point, and that throws things up in the air a bit.

  4. Couldn’t they use 2014 status achieved based on standalone EQM? It would seem staight-forward, especially if they pre-announced a fourth tier for AA fliers. After all, you can credit EQMs on either metal to either program.

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