The Economics of Airline Miles – Part 6
Continuing in my series on the Economics of Airline Miles, I bring to you an article on the depreciation or loss of value of Airline Miles.
Just like money, airline miles depreciate. Depreciation can occur due to multiple factors. This article goes into multiple factors that cause this depreciation and their impact on us, the travelers.
Issue more miles:
When the US Federal Reserve prints more money and puts it in the market, it reduces the value of all the dollars that are already in …

Booking complex award itineraries, made up of multiple cities and multiple connecting flights can be very painful. I just booked such a trip myself. When I started out I had no idea how cumbersome and time consuming it would be. I really thought I had it easy. After all, I had enough miles on all three Airline Alliances to redeem for the award trip. So I thought I would have multiple options to choose from. Instead it turned out to be a major time drain and resulted in a complex …

British Airways is one of the few airlines that is notorious for having extremely low ‘earn rates’ for their discounted economy fares. I highlighted this in my article Fast Track to Elite Status. I actually earned 25% of actual miles flown as both redeemable miles (RDM) and Elite Status Miles (EQM) on an 15,000 mile round trip. This had made British Airways one of my least favorite airlines to fly. Now, don’t get me wrong, they are not alone. There are many airlines that even give zero miles for some …

So, whether I am looking for cheap flights to Alicante (ALC) for an exotic vacation to Spain or to Charlotte, NC (CLT) for a day trip for work, my first preference is to fly on United and if they do not fly there (like to Alicante), pick another Star Alliance carrier (Spanair flies to ALC) or if no Star Alliance carrier goes there, pick another United partner. … Have one Primary airline, which is a part of a Global Airline If I had to pay a nominal fee or tax to consolidate accounts, I would do it (or pray for a merger.

One of the eternal dilemma’s faced by travelers is choosing between a low cost flight ticket and sacrificing the miles that one loses by buying that ticket, or buying higher fare tickets that will earn the full miles. Yes, you don’t always earn one mile for every mile flown.
Airlines sell tickets in different fare buckets. In the case of some airlines all fare buckets do not earn 100% miles. In fact, some fare buckets may earn no miles at all.
Cheap Fare buckets:
All airlines sell airline tickets in different fare buckets. …

As I was updating the spreadsheet I use to track my miles over the weekend, I happened to glance down at the bottom row, where I show a grand total of all my miles. It said 1,001,238. Cool! I wish it was bank balance that read that, but miles balance is a good start. I am no way anywhere near hard core road-warriors who travel over a million miles in a year (I am an UN-road-warrior, remember). Gary from View from the Wing just wrote a blog post about the …

Alaska Airlines and its sister airline Horizon Air have been a standout in a world dominated by Airline Alliances. Alaska Airlines has ‘gone it alone’ (or with its one sibling) and built up a formidable network of airline partners. This network of domestic and international partners has given Alaska the international connections and access to international routes that typical domestic carriers lack. Other airlines with a primarily domestic network or a small international footprint, have to join an Alliance to get this kind of presence. US Airways is a prime …

On May 3rd of this year, Open Skies airlines started operating flights from Washington’s Dulles (IAD) airport to Paris Orly (ORY) airport. Open Skies is a new airline. It has been operation since June 2008, operating flights from New York area’s Newark Liberty (EWR) airport to Paris. Washington now becomes the second city in the US to be graced by Open Skies flights. There was a short lived New York to Amsterdam (AMS) route, but the addition of Washington is a bold new step for Open Skies.

A Unique Airline
Now, what …

Airline miles you earn are an asset. They represent a reward owed to you by the airline whose program you have earned the miles on. If that airline goes thru a merger, acquisition or bankruptcy, it can adversely affect the value of or even existence of all your hard earned miles. This article takes a look at airline mergers, acquisitions and bankruptcies and how they can affect your airline miles.
In today’s turbulent economic times, we are seeing the airline industry go thru serious consolidation. Just in the US, Frontier Airlines …

How to Maximize Airline Mile Earnings
In my previous articles in the series ‘Economics of Airline Miles’ I covered the Value of Airline Miles in part 1 and the Value of Elite Status in part 2. Continuing in the series, in this article I will discuss practical tips on how to maximize the airline miles you earn. As I mentioned in part 1 of this series, your airline miles are an asset. Treat your collection of airline mile accounts like a portfolio. To borrow a quote from the greatest portfolio owner …