Alaska Airlines Announces Mileage Plan Program Enhancements

These days, it's pretty rare to find an airline making positive enhancements to it's frequent flyer program. Usually the "changes that you'll like" are quite the opposite, with those takeaways packaged with a trivial enhancement just to help with the optics and packaging of the negative changes.

But it appears that Alaska Airlines' Mileage Plan program is making some real, substantive enhancements that will make it easier for you to earn more miles. Here is a summary of what's changing:

Higher Bonuses for Top-Tier Gold 75k Members

Effective January 1, 2015, Alaska's top-tier Gold 75k members will receive an elite bonus of 125% of miles flown for travel on Alaska and all partners, which is an increase from the current bonus of 100%. In addition to the enhanced bonus, Gold 75k members receive 50,000 bonus miles upon qualification.

To qualify for Gold 75k, you need to accrue 75,000 EQM's on Alaska alone, or 90,000 total EQM's including partners.

Anecdotally, many people have felt that other than higher-priority upgrades, there really wasn't much difference between the top-tier Gold 75k and mid-tier Gold status. This change certainly adds more incentive to go for top-tier status, and if I had known about these 2015 changes in advance would certainly have thought hard about it.

Higher Class of Service Bonuses on Alaska Flights

Since my travel is 100% leisure, I'm able to plan well in advance and score el-cheapo fares in the lowest fare classes. This change is most beneficial to those who can't plan well in advance, and purchase paid First Class fares or higher fare classes.

For fare buckets F / P (First Class) and Y / S / M / B (Economy Class), you will receive an additional 25% in miles earned over what you receive today.

Change in Miles Earned on Delta

In response to some of the changes announced by Delta, Alaska will be modifying it's mileage earning chart on Delta effective January 1st, 2015.

The changes vary greatly depending on fare class, but in general high fare classes in Economy Class as well as almost all Business and First Class fares will receive enhanced mileage earning of 25%-50%.

However, discounted Economy fares will receive a 25%-75% reduction in the miles earned, which will almost certainly make Alaska members think twice about flying Delta. This isn't a surprise given the turf war in SEA that Alaska and Delta are embattled in.

Bottom Line

These are true enhancements in every sense of the word (well, other than those Alaska members who regularly fly Delta) and depending on your fare class and status, will increase the number of miles that you earn on a given flight by as much as 75%.

The timing of the announcement certainly qualifies as short-notice, and we would be skewering Alaska for these changes if they were takeaways, but I guess there's a double-standard when positive changes are announced.

I'm wrapping up my Gold re-qualification this week, but the changes certainly have me thinking long and hard about another push to the 75k tier. What do you think - is it worth it?

Alaska Airlines Credit Card Bonus Offer: $50 Flight Discount

I've written previously about my experiences with the Bank of America Alaska Airlines credit card. While it doesn't come with the biggest sign-up bonus nor have the best bonuses on spend, you still get a ton of bang for your buck. For the $75 annual fee, you'll receive 25,000 Alaska Airlines miles along with a Coach Companion Fare which let's you add a companion to any trip for just $118 round-trip. Oh, and the card is extremely churnable, with reports that it's possible to get a new one every 90 days.

I received an unexpected surprise in my email this morning with a bonus offer for a $50 flight discount after spending $500 on the card. But wait, but there's some fine print - the spend must be at qualifying book, toy, electronics, sporting goods and department stores from the day you activate through December 31, 2014. The categories seemed a bit odd to me, so here's the exact definition on what is included:

"*To be eligible for this offer, your account must be open with charging privileges and you must activate this offer by December 31, 2014. You will receive a $50 flight discount code on future travel if from the date you activate this offer through December 31, 2014, you make purchases of $500 or more at merchants which are assigned one of the following specified merchant category codes ("MCC"): Department Stores (5311), Electronics Stores (5732), Computer Software Stores (5734), Hobby, Toy and Game Shops (5945), Book Stores (5942), Sporting Goods Stores (5941) and Sports Apparel, Riding Apparel Stores (5655), each an "eligible purchase" for this offer. Please note that this list does not include MCC(s) commonly assigned to large discount retailers that are often referred to as "big box" stores or "superstores". Although we do not determine which MCC a merchant chooses to classify itself, merchants are generally classified based upon their primary line of business. Purchases made at merchants that do not process transactions under these codes, credits, returns, adjustments, purchases of cash equivalents, fees, interest charges and fraudulent transactions will not qualify. We reserve the right to verify eligibility of all transactions. If your account is converted to a different rewards program or to a card without a rewards program during the offer timeframe, the offer is no longer valid. Allow up to 12 weeks from the end of the promotion for the $50 flight discount code to appear in your Alaska Airlines Mileage Plan^TM online account. You must use 'My Account' to access the $50 flight discount code at www.alaskaair.com/myaccount. The discount code can only be used on Alaska Airlines flights and is not valid on partner airlines. The $50 flight discount code expires on 12/31/15."

It certainly doesn't hurt to register, but if you plan to meet the $500 spend requirement, make sure to take into account the MCC code when planning your purchases. For me, the easiest category of the group looks like department stores.

There was one more piece of information in the email that jumped out to me:

"The value of this reward may constitute taxable income to you. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) that reflects the value of such reward. Please consult your tax advisor, as neither Bank of America, its affiliates, nor their employees provide tax advice."

The wording is extremely vague and doesn't provide any details, but tt's the first time I've seen this type of language in a bonus offer. Hopefully it's not a sign of things to come, especially as the discussion around the taxability of miles starts to gain steam.

My Experience Using Alaska Miles To Book Emirates First Class

Sorry for the sporadic blog posts as of late - work has been absolutely crazy and has taken over my evening time, which I've historically tried to reserve for blogging (and the occasional trashy reality TV show). But I'm currently in the middle of a 2-week vacation to Dubai and Seychelles (full trip report to come!) and am looking forward to using this break from work to catch up on my blogging. As an added bonus, the trip will even include a stopover in Vegas for BACON, the annual BoardingArea conference, and I'm sure you'll be hearing a lot about that from all the bloggers in the coming weeks.

Back to the original reason for this post - after spending the first part of the year quickly accruing Alaska Airlines miles, I reached the 200,000 mile mark which is enough to book 2 one-way tickets anywhere in the world in First Class. Every since my 1st experience with Emirates last year I had been dreaming of an encore, and this would be the perfect opportunity as Emirates would provide the most efficient routing to fly from SFO to the Seychelles.

As I wrote about a couple weeks ago, I'd been closely studying premium cabin award availability (either First Class or Business Class) on Emirates via Alaska Airlines miles, and provided some initial insight. For those that are looking for premium cabin seats from North America to Dubai, I provided my initial not-very-scientific ranking of the best routes for availability:

Everyday and twice on Sundays
1. Chicago (Boeing 777-200LR)
2. Houston (Boeing 777-300ER)
3. Washington DC-IAD (Boeing 777-300ER)
4. Dallas (Boeing 777-200LR)

Look hard, but it's there
5. Boston (Boeing 777-300ER)
6. Seattle (Boeing 777-300ER)

Good luck, you'll need it
7. San Francisco (Boeing 777-300ER)
8. New York-JFK (Airbus A380)
9. Los Angeles (Airbus A380)

Updates since the last post

In the end, my final routing actually ended up changing a couple times from the original post and instead of flying through Chicago, I was able to grab 2 seats in First Class aboard the direct SFO-DXB flight. Leading up the my departure date, I had been closely studying the award availability patterns and wanted to share a few of tips that may be helpful:

• Like clockwork, Emirates award availability for almost all remaining First and Business Class seats are released on a rolling T-5 days prior to departure schedule
• They aren't released at the same exact time each day, but typically occurs between 9pm to 1am PST
• Phantom award availability does exist, and will lead to an error on the final step of booking. For those that have ExpertFlyer subscription, make sure to cross-reference any space you see on the Alaska Airlines website with availability on EF
• Once award space is taken, is it NOT released back into inventory. For example, before getting the SFO-DXB seats, I had SEA-DXB seats booked. After cancelling, I kept on eye on these and the award space was never released back, despite the fact that the flight took off with just 3/8 load in First Class. So what I'm trying to say is, you snooze you lose! Book first and think later, especially if you can make changes for free
• The free stopover is easy to book online, just make sure to use multi-city search option
• Be prepared to book a separate positioning flight if needed - since you can only use Alaska Airlines-metal on award tickets, there is a strong possibility that you won't find a suitable routing that will take you to your North American gateway

Based on what I've learned over the past month, here is my updated not-very-scientific ranking of the best routes, specific to First Class award availability. To give some broad perspective, at some point within the T-5 days prior to my departure date, 2 First Class seats were available from all the destinations below with the exception of Chicago and Los Angeles, which I'd say is pretty darn awesome.

Consistently reliable
1. Seattle (Boeing 777-300ER)
2. Dallas (Boeing 777-200LR)
3. Washington DC-IAD (Boeing 777-300ER)
4.  Houston (Boeing 777-300ER)
5.  Boston (Boeing 777-300ER)
6. Chicago (Boeing 777-200LR) 

Need a little bit of luck
7. New York-JFK (Airbus A380)
8. San Francisco (Boeing 777-300ER)

Once in a blue moon
9. Los Angeles (Airbus A380)

My Biggest Complaint About Alaska Airlines Miles...

Well, other than the fact that the system has been out of commission for the past 4 days (it's back online this morning). Actually, I didn't really mind since I had no pressing travel plans to make, and if anything got back the 30 minutes per day that I typically spend logging into my account and playing around with award availability.

Before I start complaining, as I wrote about in my mid-year report as a new Alaska Airlines MVP Gold, I'm really enjoying the program so far. Some of my favorite features of the program are summarized below:

• Fee Waivers: An amazing benefit for MVP Gold and MVP Gold 75k members where call center ticketing fees and ticket change/cancellation fees are waived. While other airlines waive award ticket fees for elite members, Alaska also waives fees for revenue tickets a la Southwest. 
• Use of Smaller Airports: Alaska uses smaller airports, which in the Bay Area include SJC and OAK, with flight schedules that are on par with larger airports such as SFO.
• Upgrades: Since I’m primarily a leisure traveler, unlike business travelers I have the luxury of purchasing el cheapo fares well in advance of departure date. Most airlines prioritize upgrades by elite status, then fare class. Alaska prioritizes upgrades by elite status, then time of purchase which works out well for me.
• Direct Phone Access to Friendly and Helpful Agents: I've called in several times, and each one has been answered directly after a couple rings without having to fumble through a phone tree. Also, each and every interaction I've had with Alaska's phone agents has been pretty darn pleasant. I've had to deal with my share of phone agents at other airlines that left me downright mad and angry, so don't underestimate the value in someone not ruining your day.
  
  

 At the time, I only had a handful of complaints about the program, if you can even call them that:

• Route Network: This comes with the territory given that Alaska is a regional program, and flight service on Alaska to the Midwest and East Coast is limited. This is why they've partnered with American and Delta to fill in the gaps.
• Airline Partners: While the list of partners is big enough to get you where you need to go for the most part, there isn’t a lot of overlap that the bigger alliances have which can yield multiple options for many destinations.
• Upgrade Waitlist: When using guest upgrades, Alaska doesn't provide the ability to waitlist for upgrades, and instead "U" space must be available which dilutes the value of the guest upgrades
• Mileage Posting Times: A minor issue, but in general I've had to wait 5-7 days for my Alaska flights to post, and over a week for my Cathay Pacific partner flights to post to my account. United flights would typically post to my account in 1-2 days
  
  

As is the case in any relationship, the more time you spend with someone or something, the more things you'll find to complain about. My relationship with Alaska Airlines has been no different, and as I'm trying to use my miles for an award redemption for the first time, there's a few things to add to the list:

• Awards Must Include Travel To/From North America: This is my biggest complaint about the program. In theory, this doesn't sound like a big deal for those of us based in North America (which is probably everyone that uses the Alaska Airlines program). As you can see in the chart above, that's how the award charts for each airline are structured. But this is atypical compared to other programs, which usually allow you to book flights to/from any destinations that partners fly.
  
  For example, I'm in need of a flight from Seychelles (SEZ) - Dubai (DXB) and a one-way coach ticket on Emirates is coming in at a whopping $650 for the 4-hour flight. I'd love to be able to use my Alaska Airlines miles for this leg, but it just isn't an option given the structure of the program.
• Travel To/From Domestic Gateway Only Available On Alaska Airlines: When booking award flights I totally get that it can be a bit of a crapshoot, and sometimes you just have to book a separate positioning flight. But Alaska only permits travel to/from your domestic gateway on Alaska-metal, which can be a pain if you need to position to the Midwest or East Coast. The reason they partnered with Delta and American was due to their limited domestic route network, and they should allow travel on these carriers to your North American gateway
• No Mixed Partner Awards: related to the point above, but as you can see from the award chart everything is focused on each partner, as opposed to travel to a specific region/destination. Therefore, you are not allowed to mix-and-match partner awards as you can with traditional alliances in other programs, which limits the options for routes that need multiple connections.

Overall, I'm still really pleased with the Alaska Airlines program, but the issues I've found above have limited the flexibility in using my miles and is certainly part of the trade-off of being part of a smaller program.

I'll report back with any other updates, and am also interested in hearing about your experiences using Alaska Airlines miles.

Churn The Alaska Airlines BofA Credit Card And Save Big With Multiple Companion Passes

As I wrote about previously, this year I've switched my primary airline from United to Alaska Airlines. My experiences so far this year with Alaska have been overwhelmingly positive, and I haven't looked back. I have been trying to quickly build my Alaska mileage balance, and in addition to flying and purchasing miles, signing up for the Alaska Airlines credit card from Bank of America has been a huge help.

The offer on the Bank of America website is for 25,000 miles after 1st purchase with a $75 annual fee that is not waived. The card also comes with the following benefits:

• Earn 25,000 Alaska Airlines Mileage Plan™ Bonus Miles upon approval.
• Coach Companion Fare every year from $118(USD) ($99, plus taxes and fees, from $19).
• Earn 1 mile per $1 on all purchases
• Earn 3 miles per $1 on Alaska Airlines tickets, Vacation packages, and Cargo purchases
• Earn up to 5 miles per $1 at partner hotels and restaurants
• Enjoy no mileage cap. There's no limit to the number of miles you can earn with the Alaska Airlines Visa Signature card.
• Go far and wide with miles redeemable on over a dozen airlines. Visit the Alaska Airlines website for the airline partner list.

This thread over on Flyertalk has a lot of good information, including more lucrative sign-up offers:

• 25,000 miles after 1st purchase, $75 annual fee but $100 statement credit after $1,000 spend in 3 months 
• 30,000 miles after 1st purchase, $75 annual fee
• 40,000 mile offer after $10K spend in 6 months, $75 annual fee

While the bonus miles are great, the one benefit that has saved me a ton of money is the annual Coach Companion Fare, which allows you to add a companion on any Economy Class booking for just $118. Unlike most companion tickets, this one even allows you to earn EQM and RDM's on the companion ticket.

Best of all, the Bank of America cards are churnable, meaning that you can apply for multiple personal and business versions. While there isn't a specific or published time to wait between applications, reports on Flyertalk indicate that you can do so as often as every 3-4 months. Depending on your ability to manufacture spend, the various offers will appeal differently to each person, and personally I've found the 25,000 offer after 1st purchase and $100 statement credit to work best for my spending patterns.

According to the T&C's, you can even use multiple companion passes when planning travel for a large group, since it states that the owner of the Companion Fare code but be either one of the travelers on the reservation, or can be the one that purchases the reservation for two other people.

Who can use my Companion Fare Discount Code?
The Mileage Plan™ member who owns the Companion Fare Discount Code must either be one of the travelers or the purchaser of the reservation. If the member is allowing two travelers to use his or her Companion Fare Discount Code, then the member's name must match the name on the credit card used to purchase the reservation.

This is how I was able to use multiple companion passes on a booking for a family trip later this year, where instead of having to purchase 6 tickets, I purchased 3 tickets + 3 companion passes. Each of those companion passes saved over $500, which brought my total savings to over $1,500. Since the cost of the companion ticket is fixed, it makes sense to use them during times when fares will be highest such as holidays, peak seasons, and for last-minute travel.

Have you had success churning the BofA Alaska Airlines Card? What have you used your Companion Pass tickets for and how much money did you save as a result?

Month of July Deals on Alaska Airlines and Cathay Pacific

I recently received emails from both Alaska Airlines and Cathay Pacific highlighting their month of July deals that may be of interest to those of you planning travel later this year.

Alaska Airlines is currently having a 3-week long sale to various destinations in Mexico. This week features the destination of Mazatlan, with fares starting as low as $169 one-way from LAX and $239 one-way from Seattle. Keep in mind that this could be a perfect use for the Bank of America credit card's companion pass, which will let you bring a companion along for an additional cost of only $119 round-trip. As an added bonus, the companion ticket is even eligible to collect both elite and redeemable miles.

Fares to Mazatlan must be purchased by midnight on July 20th, for travel on Sundays / Mondays / Saturdays from September 1st through October 6th. They will be featuring a new destination in Mexico each week, so keep checking back for additional locations.



If you're looking to travel even further, Cathay Pacific's deal of the month features flights to Cambodia and Vietnam starting as low as $951 round-trip from San Francisco and Los Angeles, and from $1,032 from Chicago and New York. Tickets must be purchased by midnight on July 20th for travel between September 1st and December 9th.




Both of the options above are appealing to me as I'm only about halfway toward re-qualifying for Alaska Airlines MVP Gold status and have been looking for good deals. In case you missed it, last week I outlined some of my experiences year-to-date s a new MVP Gold member.