Who Loses in the American-Alaska Breakup?

Earlier this year, I wrote about the advantages of Alaska Airlines’ Mileage Plan despite not being in a market served by either the Seattle-based carrier or Virgin America. At their foundation, this points program represents an interesting value proposition by using miles for domestic and international travel across carriers at an accessible price point. However, no reward program is invulnerable to devaluation – and a major shift that will affect overall value is coming to Mileage Plan.

On July 6, Alaska released a number of changes in regards to their partners starting on January 1, 2018. After effectively breaking off all contact with Delta Air Lines over tensions at Seattle-Tacoma International Airport, it was only a matter of time before shifts came in their relationship with American Airlines. How will frugal travelers be affected? As with many things in the points and miles game, it all depends on where they are based and how they travel around the world.

Most affected: Alaska flyers on American Airlines

Although Alaska travelers who regularly fly American can still earn and use miles towards frugal travel, don’t plan to earn Mileage Plan miles in the coming year. Starting in 2018, Mileage Plan flyers will only be able to earn Mileage Plan miles on co-marketed American flights. Any flight that does not have an “AS” flight number attached will not qualify to earn Mileage Plan miles towards free trips.

To make matters worse, Mileage Plan miles may no longer be valid on certain American routes. Those planning a trip to Asia or Central and South America should plan their trips sooner rather than later, as some routes will increase in price, while other routes will be cancelled entirely.

While the option to “earn and burn” Alaska miles will soon be limited, this problem is not insurmountable. Travelers can still earn Alaska Mileage Plan miles towards domestic travel on Alaska and American through the Alaska Airlines Visa Signature Credit Card, offering 30,000 bonus miles after spending $1,000 in purchases in the first 90 days of card opening and one mile per dollar on all other purchases.

Moderately affected: Alaska Mileage Plan MVP flyers

For Alaska Mileage Plan MVP elites, one of the best perks was status recognition aboard American. However, that recognition will soon come to an end for even the most loyal Alaska passengers.

Beginning January 2018, Mileage Plan MVPs will no longer receive priority boarding, free checked luggage or preferred seating when flying aboard American. The loss of these benefits can cost frugal travelers in the long run, from checked bag fees to upgrade purchases for better seats. However, lounge access will not change: those who hold membership to Alaska Lounge can still gain entry to both the Alaska clubs and over 50 American Admirals Club locations.

Flyers who are concerned about losing these benefits may want to consider adding a Citi credit card to their wallet to balance out the lost perks. The Citi AAdvantage Platinum Select World Elite MasterCard grants travelers preferred boarding and one free checked bag, with no annual fee for the first year.

Least affected: Alaska flyers in served markets and international travels

While the changes do create challenges for some flyers, some things will remain the same – and possibly improve. For those flying in marketplaces served by Alaska Airlines or Virgin America, nothing changes: with the combined power of both carriers, Alaska/Virgin America loyalists have more opportunities to see North America and get rewarded for their travels.

Moreover, those flying international routes with Alaska, American or Virgin America will still earn Mileage Plan miles, regardless of co-marketing status. To make things better, those miles will also count towards MVP status.

Finally, the price of some domestic flights will drop when using Alaska Mileage Plan miles. According to the airline, business/first class awards from the contiguous United States to Hawaii will drop on American, while other routes could decrease as well.

Although devaluation is a constant threat in the points and miles world, understanding the changes is critical to continued frugal travels. While some of these changes will hurt more than others, frugal travelers still have plenty of opportunities to see the world with Alaska Mileage Plan miles across all of their partners.

 

Will the upcoming changes between Alaska and American change the way you fly? Let me know your thoughts in the comments below!

Written by Frugal Travel Guy @ http://www.frugaltravelguy.com

Written by Frugal Travel Guy @ http://www.frugaltravelguy.com