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The Honolulu Advertiser
Posted on: Sunday, October 15, 2006

FREQUENT FLIER
Stay on top of mileage reward rules

By Tim Winship

Do you know when your frequent-flier miles expire?

Don't be too sure. Recent and upcoming changes at several airline programs are altering the rules governing how long miles or points remain active, and whether (and at what cost) expired miles can be reactivated.

QUICK RECAP

Over the 25-year history of travel rewards programs, mileage collectors have seen it all, from miles that disappear after a scant 12 months to miles with no expiration date whatsoever.

As the plans matured, though, they have conformed to one of two competing models: One for programs hosted by discount carriers, the other for full-service airlines.

Led by Southwest, most low-cost carriers opted for a harsh approach to mileage expiration, scrubbing points from members' accounts just one year after they were earned. That made accumulating sufficient points for a free ticket virtually impossible for all but the most frequent fliers since earnings disappeared faster than they could be replaced by new points.

Meanwhile, the old-line airlines congregated at the generous end of the spectrum, allowing participants in their programs to extend the life of their miles by three years every time they either earned miles or cashed them in.

With such a liberal policy, and so many ways to earn and redeem miles, there was no compelling reason why miles should ever expire.

ACROSS THE MILES

However, five significant changes have come about during the past 18 months.

  • Southwest — The first in the recent wave of shake-ups was Southwest's policy change, in August 2005, from a one-year to a two-year expiration for Rapid Rewards points.

    Rapid Rewards members, however, paid a price, Southwest imposed capacity controls on award seats, making them harder to come by.

  • JetBlue — A year after Southwest's change, JetBlue in August 2006, extended the life of their points an additional 12 months every time TrueBlue members charged $200 or more, or a JetBlue ticket, to the American Express JetBlue credit card. JetBlue's policy shift was no doubt partly in response to Southwest's.

  • ATA — Discount airline ATA announced since Oct. 1, Travel Awards points are valid for two years, twice their previous life span.

    Unlike JetBlue's competitive countermove, the change at ATA was to maintain consistency between the programs of Southwest and ATA, which are linked through a marketing partnership between the two carriers and could be merged into a single program.

  • US Airways — US Airways, which reinvented itself as a discount carrier after its bankruptcy and subsequent merger with America West, reviewed its three-year rule and deemed it too generous (read: expensive) for its new corporate personality. According to the company Web site: "Effective Jan. 31, 2007, membership is based on having earned or redeemed miles within a consecutive 18-month period."

    US Airways is also allowing expired miles to be reactivated for an additional 18 months for a $50 processing fee plus $.01 per mile.

    That means it would cost $300 to rescue 25,000 miles, a questionable proposition since a ticket without the frequent-flier restrictions could be purchased on the open market for that amount.

  • Delta — Lastly, proving that mileage expiration is not confined to the low-fare operators — and raising the specter of changes from the likes of American, Northwest and United — members of Delta's SkyMiles program have been put on notice that after Dec. 31, miles will expire after two years of account inactivity.

    The new policy applies retroactively: Miles in accounts with no activity during calendar years 2005 and 2006 will also expire Dec 31.

    DON'T WASTE A MILE

    What can mileage collectors do to keep their miles from expiring?

    Join a program in which there are realistic awards.

    In Southwest's program, for example, members must fly eight roundtrips within 24 months to earn a free ticket. For many leisure travelers, that's a big hurdle.

    Then keep current with the program with active accounts and by tracking expiration date of miles and points.

    In programs with extendible miles, use a program-affiliated credit card or sign up for miles-for-dining. Regular use of either will keep all banked miles alive with minimal intervention.

    And if earning miles proves difficult, remember that redeeming miles extends the life of banked miles as well. Most larger programs allow members to cash in as few as 400 miles for a magazine subscription. That's an efficient use of miles and an easy way to keep accounts active.

    Reach Tim Winship at questions@frequentflier.com