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As I wrote about previously, US Airways is offering a bonus of up to 100% on purchased Dividend Miles that has just been extended through October 12, 2014. However unlike some recent promotions, this one is targeted. As the American Airlines and US Airways merger continues to move along, this could be one of the last chance to buy US Airways Dividend Miles.
The bonus amounts are as follows:
• Purchase 1,000-9,000 miles, get a 25% Bonus
• Purchase 10,000-19,000 miles, get a 50% Bonus
• Purchase 20,000-29,000 miles, get a 75% Bonus
• Purchase 30,000-50,000 miles, get a 100% Bonus
The maximum bonus you can earn is 50,000 miles, so any miles purchased beyond that amount will not qualify. Miles normally cost cost 3.5 cents each, plus a 7.5% tax. If you choose to purchase the maximum of 50,000 miles, the cost is lowered to about 1.88 cents per mile, which comes out to $1,881.25 for 100,000 miles.
Where US Airways Redemptions Make Sense:
Off-Peak Awards: Like American Airlines, US Airways has off-peak awards where you can score surprisingly good deals. American’s off-peak awards are much more widely available and for longer periods, but US Airways’ awards do have some redeeming qualities, like getting to Europe for 35,000 miles round-trip from North America and Hawaii between January 15-February 28. You can find the complete award chart here. For some sample flights, I chose Philadelphia-Rome in late January. To buy these same flights outright would cost $1,154, meaning your 35,000 miles would get you 3.38 cents per mile in value, which is much more than the 1.88 cents per mile you would pay for them.
American Airlines Transcontinental First Class: Redeeming US Airways for American Airlines Transcontinental First Class between New York and Los Angeles is another good value, since American flies between JFK-LAX non-stop 13 times a day. I recently flew this service from JFK-LAX on the new A321 in First Class and was quite pleased with the new plane and seats. I looked at some sample flights in November; to buy these same flights outright would cost $3,634, meaning your 65,000 miles would give you 5.59 cents per mile in value, which again is much higher than the 1.88 cents mile you would pay for them.
First Class to Asia: You could redeem your Dividend Miles for First Class on American Airlines to Asia for 120,000 miles round-trip. Even though the limit of purchased miles maxes you out at 100,000 miles, US Airways has frequently run these buy miles promotions in the past, so if you were able to use 120,000 miles purchased through these offers, you’d save the $6,405 cash price for these same flights, which gets you 5.33 cents per mile in value.
These are just a few examples of how purchasing US Airways miles could be worthwhile. Check out my post on the Top 11 Awards To Book With US Airways Miles Now That It Is A Member of Oneworld to see some other great uses for Dividend Miles.
Another thing to keep in mind is that these miles will become American Airlines AAdvantage miles at some point in 2015. US Airways is currently in the process of merging with American Airlines; flyers on both airlines can already earn and redeem miles reciprocally, and the Dividend Miles and AAdvantage programs will eventually merge as well. As a reminder, you can get 5,000 miles off US Airways awards if you have the US Airways Premier World MasterCard, though this benefit is set to expire in 2015.
Do you plan on taking advantage of this offer, and what redemptions do you have in mind?
- For a limited time, earn 50,000 American Airlines AAdvantage® bonus miles after making $3,000 in purchases within the first 3 months of account opening*
- First checked bag is free on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation*
- Enjoy Group 1 Boarding on American Airlines flights*
- No Foreign Transaction Fees on purchases.1
- Receive 25% savings on in-flight food and beverage purchases when you use your card on American Airlines flights*
- Double AAdvantage® miles on eligible American Airlines purchases*
- Earn 10% of your redeemed AAdvantage® miles back — up to 10,000 AAdvantage® miles each calendar year*