Government Approves Deal Between US Airways and United
||:: Late-Breaking News
(Posted: Oct 2, 2002)
The government on Wednesday (Oct. 2) approved a deal that allows United Airlines and US Airways to sell seats on one another?s airlines, link flight routes and offer reciprocal frequent flyer program perks -- effective immediately. The Department of Transportation said it gave the struggling airlines the go-ahead because such an agreement would increase competition and be a boon for travelers.
Frequent flyers will pocket the first tangible benefit of the agreement on October 14, when each carrier will open its airport club lounges to both Dividend Miles and Mileage Plus members. Mileage accrual, including class-of-service bonuses, will begin November 1. Members of each program will begin earning Preferred/Elite bonuses and will see their flights on either airline count toward status beginning January 1. The code sharing and ability to redeem awards on both airlines is expected to be phased-in during the first quarter of 2003. According to Mike Isom, Senior Manager - Marketing Programs, US Airways Dividend Miles, the airlines have not yet determined how upgrades will be handled.
Glenn Tilton, United?s chairman, president and chief executive officer, said the agreement should provide customers with expanded service options and frequent flyer benefits.
What this means to the Delta Air Lines and United partnership remains to be seen, but we expect each airline to announce a severance shortly.
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