American AAdvantage And US Airways Dividend Miles To Merge In April 2015

We’ve known for a while that American AAdvantage and US Airways Dividend Miles will integrate in the second quarter of 2015.

Combining-AAdvantage

That being said, up until now American and US Airways haven’t been more detailed as to which part of the second quarter the programs would integrate in. My understanding has always been that they were aiming for earlier in the second quarter rather than later in the second quarter, but that was never official.

Via the Dividend Miles e-statement which Dividend Miles sent out to members, it seems like AAdvantage and Dividend Miles will merge in April 2015:

Next month, we’ll reach the next milestone on our path to integration by bringing Dividend Miles into the American Airlines AAdvantage® program. We’ll transfer your mileage balance and elite-qualifying activity into your new (or existing) AAdvantage account.

Interestingly in late February we had reason to believe that the programs might integrate late this month, due to the verbiage used in describing the Jet Airways/Dividend Miles partnership ending. But that would have been earlier than the timeframe given, and I suspect that would have irked some members.

Now that April has “officially” been announced as the integration month, I expect we’ll have an exact date soon.

American-777

In the meantime:

  • Link your AAdvantage and Dividend Miles accounts, so that your account transition goes smoothly when the programs merge (some people have had issues whereby they can’t link accounts when the names don’t match exactly)
  • Decide whether you want to redeem your Dividend Miles before the programs merge, or want to wait until they’re converted into AAdvantage miles (in most cases you’ll get better value redeeming them now)
  • Keep in mind that if you’re a Dividend Miles Chairman’s Preferred member, you’ll be getting eight systemwide upgrades in a matter of weeks — start thinking about what you want to do with them

Are you looking forward to or dreading the AAdvantage/Dividend Miles integration?

(Tip of the hat to Loyalty Lobby)

Comments

  1. My US Air miles are set to expire soon (unless, of course, I create activity). What happens to expiry clock after merger of FF accounts?

  2. I’m sure this has been addressed before, but can you comment on if activity this year will also be merged? For example, if I have 4 segments on US Air, credited to US Air, and 2 segments on AA, credited to AA, will I have 6 segments towards status on AA after the merge? Hopefully that makes sense…

  3. @ Rick L — We don’t know for sure yet. If I had to guess I’d say that the programs merging will reset the expiration date, but I could be mistaken. That’s just speculation on my part.

  4. Another question I am super-concerned about is the use of 2 AWE SWUs this year; I talked to a rep at CP desk, who informed that the certs would cease to exist after the programs merge.

  5. @ Terence — Correct, they’ll be taken away, but you’ll be given eight “fresh” American systemwide upgrades.

  6. Lucky,
    Any hypothesis on when a devaluation might occur? Debating if I should start burning now or potentially get burned if I wait.

  7. Hey Ben. Would like your opinion on a situation I may be dealing with soon. If I have an award booking using US Airways miles and I need to make changes to the itinerary after the programs merge, do you think they’ll just charge the change fee or in addition to the change fee, will they also charge additional miles since AAdvantage charges more miles than US airways for the same award?

  8. What about US Airways mastercard sign-ups? If I apply today, the 50,000 points typically posts on the second statement, which is likely 2 months. So where do the miles go? Any word on when the last date to apply for the US Airways MC is?

  9. @ Seth — It’s anyone’s guess. If I had to guess I’d say maybe late this year or early next year. I don’t think it’ll be immediate.

  10. What about my precious complementary upgrades? I’m getting upgraded probably 70% of the time these days on USAir. Does that all come to an end? Or, do I just have to pay $35?

  11. @ Dave — If it’s after the programs combine then the balance would go straight into your Dividend Miles account.

  12. @ John — Upgrades on shorthaul flights will continue to be complimentary. You’ll be given some starting balance of upgrade instruments when the programs merge. And then you’ll earn 500 mile stickers as well. Otherwise you can buy additional ones.

  13. Hey Lucky,
    Do you think AA will offer deals like 100% sharing bonus miles like how US used to offer?

  14. I’m sort of neutral on the merger of the programs. As a US Airways Chairman, I’ve already been receiving a pretty high upgrade percentage whenever I happen to fly AA. Even last Thursday when I was trying to get from DFW to PHL through all the winter mess – and was getting switched around among various US Airways and AA flights – they kept me upgraded (finally got out on an AA flight).

    A big unknown, of course, in what the program experience will be post-merger is how many new high-level elites there will suddenly be after all those accounts are merged. But I’m looking forward to the 8 SWUs (they will be nice for my mom when she visits my sister’s kids!).

    I did make a point a couple of weeks ago to finally crack open my bank of miles and book a trip LAX-NRT (JAL in First) to take advantage of the Dividend Miles chart 🙂 Your tips on finding award space were really helpful – found something very easily within the time frame I wanted. And no problems booking with the agent.

  15. Here’s a weird thing. On my AA account, I was PLT last year, but only earned enough activity to qualify for GLD this year. I had no DM account, but signed up for one and was gifted Preferred Gold (which will be AAdvantage PLT). I matched the accounts whenever they first started to allow that.

    Technically my PLT status should have expired end of February, but when I log in and look at AA, I still have it. Are they extending status for people in my case until whenever the programs merge?

    I have some international flights coming up in a couple weeks, currently set to credit to my DM account, but if I will have AA PLT through mid-April, I should change it so I get the higher mileage bonus…

  16. Race against the clock for me – I’m on the wait list to use a Chairman’s upgrade certificate on April 8th. Tempted to just buy up to envoy — only $1k — but am sort of getting kick out of the gambling-like feel to this.

  17. I can’t wait for my USAir dividend miles to become AA miles. The USAirways mile redemption calendar has always been absolutely terrible. Why should it cost 12,500 miles on certain days and 30k on others. Yes, airlines can make different more desirable days more miles but the USAirways calendar had absolutely NO rhyme or reason to it. Unless you are an avid USAirways flier and have tons of miles to burn, the average guy had trouble redeeming. I had 30K miles in my account for 3 years because every time I tried to use them one leg of my proposed trip would be HIGH for no reason and would price it right out of my mileage balance.

  18. My online Dividend Miles account page does not show my million miler balance. How can I figure out what the balance is and how much will transfered to my Advangtage million miler account?

  19. @ Munroe — I’ve heard a few reports of this, though don’t know the cause. That’s awesome, though!

  20. @ Sam — I don’t think we’ll see anything much better than what we’re getting right now from American and US Airways.

  21. @brian

    If your Dividend Miles account ever lapsed/expired, the account got closed, you lost your “million miler” balance to that point, and US Airways has no record of it and cannot reinstate it. It’s of the worst aspects of the Dividend Miles program.

  22. About two weeks ago,all availability in “Saver” Business class to the Caribbean disappeared on AA (including US Air flights).Do you think this will change after the merger?

  23. I have a modest number of miles on both AA and US Airways but not enough on either for a significant award. After the merger, I’ll have a couple hundred thousand miles in the new AA program, putting an aspirational award within reach. I’m sure this will be a similar scenario for many people, thus increasing the overall demand for awards.
    Any thoughts on whether my newfound largess in the combined AA program will be neutralized by this new demand, or will the combined award space of the two airlines theoretically offset this?

  24. @ Austin — Most of their partners already overlap given that they both belong to oneworld, so I wouldn’t expect a drastic change in demand.

  25. @ Erik — I don’t think it has anything to do with the merger, so wouldn’t expect availability to be tied at all to program integration.

  26. Any other explanation for the complete disappearance of the saver business awards to the Caribbean then?. It went from lots of options to absolutely zeppo!

  27. Hope the conversion/merging of accounts will be smooth but I imagine there may be some glitches. Kind of feel for the IT team.

  28. Ben. If I cxl my current Barclays US Air card how long do u think I should wait to reapply for 1 last 50,000 bonus? FICO 780 so I could care less about the hard pull and 6 figure income. Is a week long enough do you think? Had the current 10 months so should be no issues cxling that one. Thanks!

  29. @ Sean — It’s anyone’s guess. Some report being able to earn the bonus again pretty quickly, while others don’t seem to be able to earn the bonus again. There doesn’t seem to be a “rule” that applies across the board, unfortunately.

  30. @ Erik — Not really, unfortunately. Sometimes airlines just get stingier with space on certain routes during certain periods, and sometimes it goes in waves. No logical reason.

  31. I just got the US Airways card and have a companion certificate good through the end of July, I think. Do you think they’ll honor those after the merger? It would be a lot more valuable if I could use it on AA flights, since the T&C state that it’s only good for US Airways operated flights.

  32. @ Lisa — You can continue to use it, but only on US Airways flights (since they’re still on separate reservations systems).

  33. I am US Air Chairman’s’ I have not used my 2 SWUs; Will those be “added” to the 8SWUs issued by AA when the programs merge?

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