Tuesday, March 12, 2013

JD's Newbie Airline Choice

Important Note:  Chris and I may talk about the loyalty credit card for our particular airline and hotel in these posts. Credit card sign-up bonuses are an important part of the “game.” If we do decided to use credit card links, they will be public application links taken from the issuer's direct website. We do not earn income from you applying from the links. Similarly, please take an extra minute or two before applying for credit cards. If you do not pay your credit card balance off every month then you should stay away from this aspect of the game. Credit cards can lead to major long-term problems if not used correctly. I encourage you to read my post on Young People and the Chains of Credit Card Debt for more details.


My choice for the best airline for a Newbie is US Airways. Unconventional choice, many of you are saying.

US Airways’s frequent flyer program is called Dividend Miles. With Dividend Miles, US Airways can get you free flights to over 200 destination in the US, Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. US Airways has hubs in Charlotte, NC, Philadelphia, and Phoenix and a large focus city in Washington, DC.

Why is this important?

It allows you to get regularly within the United States for as cheap as 25,000 Dividend Miles and Europe and South America for as little as 60,000 Dividend Miles. In addition, throughout the year, US Airways has time periods that offers discounts on award travel. For example, in 2014, one can spend 35,000 miles for a seat to South America in economy, during February 3- 13 & March 17-April 3.

If you want to spend the miles on premium seats, US Airways can help as well. A ticket to Africa in Business Class costs you 110,000 miles and even stranger a trip to Northern Asia with a stopover in Europe cost only 90,000 miles. This is compared to 120,000 United Mileage Plus Miles for business class to Northern Asia or Africa. American Airlines business class seat costs 150,000 miles to Africa and 100,000 miles to Northern Asia.

The other major benefit of Dividend Miles is that it can be used on other carriers. US Airways is a member, for the near future, of the Star Alliance. This is a golden opportunity. The Star Alliance is made up of over 25 International Airlines and flies to over 1,300+ airports in 190+ countries. Dividend Miles opens the world to you.

The ability to easily spend Dividend Miles is not the only reason, why I am recommending US Airways to my newbie friends. Dividend Miles are very easy to obtain, as well. For instance, US Airways has a cobranded card with Barclays. The offer on the US Airways Main Page offers 30,000 miles after your first purchase with an $89 annual fee. Not many credit cards offer that many points after a first use.

Another way to obtain points is to buy them. Every month, US Airways has offers that range from 30% to 100% mileage bonuses. I don't recommend buying points. Yes, it can bank you easy points, but the cost does not always make sense. However, if you are short 10,000 mile to get an award trip, US Airways constant mileage promotions will make the award trip cheaper.

Another way to earn Dividend Miles is to use various US Airway partners. From eating out Dining Rewards to clicking on links through eMiles, Dividend Miles can be earn by doing almost everything in your life. If you are staying at hotels or rent cars, many Dividend Miles can be earn as well. Finally, you can earn miles at the ratio of one (1) mile flown = one (1) mile earned on many Star Alliance airlines.

The final reason why US Airways is a great airline for newbies is the future. US Airways and American Airlines is eventually going to merge into one airline. Subsequently, the Dividends Miles and AAdvantage programs will become one. If history is any indicator of the future, Dividend Miles will transfer 1 to 1 into AAdvantage similar to the Continental and United merger. Therefore, when US Airways leaves the Star Alliance for OneWorld, your miles can be used there as well. It is the best of both worlds. You can use your miles now in the Star Alliance or later in the OneWorld Alliance.

US Airways Dividend Miles was my first frequent flyer account and over the past 12+ years, it has treated me well and I know it will treat you, newbie, equally as well.




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