How the American Airlines & US Airways Merger Will Benefit You

The deed is done.  American Airlines and US Airways’ merger has been approved by the government, and now it is only a matter of time that US Airways disappears from the map. This is set to create the world’s largest airliner now that their forces will be combined.

American airlines merger

American and US Airways will become one

We’re now left with Delta, United, and American as far as the legacy airline carriers in the US.  This 10 year window of consolidation in the airline industry has removed a significant amount of competition, which generally means bad thing for the consumer.

There are tons of views on how the glass is half-empty about the American Airlines and US Airways will hurt you.  There is plenty of evidence of why this is the case, but for this post I’ll give the half-full viewpoint of how this merger will help you.

  • Consolidate accounts–  It will be great for me when my 62,000 US Airways Dividend Miles merge into my AAdvantage account and put my total to over 200,000 AAdvantage miles. My wife’s points will do the same, which will be great when we look at booking our next vacation.  Putting all the points into one currency gives me more chances.
  • Access to more hubs–  Living in Idaho is difficult for travel.  We are very limited on our options, and for that reason, most of the time we end up driving to Salt Lake.  Although this merger doesn’t change the flights that come in and out of Idaho Falls, it will give me additional flights out of Salt Lake.  My hopes are that this will create more opportunities for additional American flights, which give me better chances of using my miles.
  • You still have time to score the The US Airways Premier World MasterCard®– Barclaycard has come out and said that I can continue to earn US Airways miles:

American MergerThis is a great way to pick up some (soon to be) American Airlines miles.  The US Airways Premier World MasterCard® usually pulls credit from TransUnion, which is the least commonly used agency.  The bonus isn’t massive, but the spending requirement is ridiculously low, so it is best paired with a couple of other cards.  🙂  Get this card before the offer is gone.  It is another way to bulk up your AAdvantage account.  It is estimated that you will be able to transfer your Dividend Miles into your AAdvantage account early in 2014.

Citi has announced that it will continue to offer the American Airlines co-branded credit card moving forward, so make sure you take advantage of this card before it disappears.

  • People with Status-It will be great for fliers who have status with either carrier.  Their status will be honored by both carriers at an unspecified date, which will be nice especially while they continue to operate as two separate companies for a while.

Overall I don’t really think that this is an advantage to most fliers.  It allows for less competition in the market, which inevitably results in higher prices paid.  Either way, it is here to stay, so let’s just take advantage of everything we can to make it as good as possible for us!

 

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4 Responses to How the American Airlines & US Airways Merger Will Benefit You

  1. Sharee Owings says:

    I am new here. I need to get 2 adults and 4 children to Hawaii end of 2014. I am wondering if getting the US Airways card for me and my husband would be a good way to get the flights? Use the bonus points for the adult fares and the companion fares for the kids. Am I thinking that through correctly? Is there a better way to do it?

    • Sheldon says:

      @Sharee- Welcome to the world of Worldwanderlusting. You’ll love it here.

      Unfortunately the fine print of the US Airways Card explains that the companion ticket is only available for the Continental USA.

      Annual Companion Certificate. The Companion Certificate issued to Cardmembers with the $89 Annual Fee MasterCard is redeemable for up to two companion tickets ($99 each, plus taxes and fees). The Companion Certificate issued to Cardmembers with the $49 Annual Fee MasterCard is redeemable for one companion ticket ($149, plus taxes and fees). The initial Companion Certificate will be sent to you in your welcome package within 2-4 weeks of account opening, and then every year you are a cardmember on your account opening anniversary. The Companion Certificate is valid for travel in the Continental U.S. or Canada with the purchase of a US Airways ticket (minimum fare purchase of $250). Individuals flying on a companion ticket must be on the same itinerary as the primary cardmember. The Companion Certificate is valid for travel within 12 months and tickets must be purchased within 9 months from the certificate issue date. Additional restrictions, taxes and fees apply, see certificates for full details.

      Here is a list of requirements to get to Hawaii and some cards that will help you get there.

      You are probably thinking about using the Alaska Airlines card. Do you live somewhere that Alaska Airlines services?

  2. Brady W says:

    It doesn’t look like the annual fee is waived the first year on this card, is that right? I might get it anyway but I just want to know what to plan for.

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