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Pick a Card
Cheap Charlie · May 26, 1999

Last week I was excited about a friend who was somehow "non-selected" for the American Express Member Rewards Program. This is a good time to explore what these credit card frequent flier mileage programs actually provide.

Before I get into some of the specifics, let me confess, I have not read the fine print of every program. However, I have read the fine print of most. For a consummate cheapmeister these programs are just about closest I can imagine to getting something for nothing. Heck, I’d still be spending money, why not get rewarded for doing what comes naturally?

Some friends of mine run their entire businesses through these credit cards and have never paid for an airline ticket for years. Other friends have put this year’s income taxes on their credit cards. You have to admit, that has a sweet feel to it getting mileage while paying Uncle Sam.

I know there are lots of travelers complaining about never being able to make the reservations on the flights then need when using frequent flier mileage. In an upcoming column, I’ll deal with that. Suffice it to say, there are normally ways to use your frequent flier ticket on whatever flight you need, except in times of extreme overcrowding and overbooking such as Thanksgiving and Christmas.

There are two heavyweights in the credit card frequent flier programs: American Express and Diners Club . These programs allow card holders to accrue mileage that can be used on various airlines. The American Express Card is accepted at more locations in the U.S. than Diners Club, but that is the only advantage.

When it comes to the number of airlines that accept their mileage points, Diners Club comes out ahead. Diners Club Reward points can be used on virtually any airline. American Express only allows members to use their mileage on 13 airlines. These are limited to only six U.S. carriers -- Continental, Delta, USAirways, Southwest, Hawaiian and TWA. The other airlines affiliated with American Express are Aeromexico, Cathay Pacific, Mexicana, El Al, Korean Air, Sabena and Virgin Atlantic. They also work with Latin Pass.

The other credit cards that award frequent flier miles for each dollar spent are affinity cards aligned with just about every major airline. If you qualify for gold or platinum cards, some award more than a single mile per dollar.

Once upon a time, with these cards were the main criteria was whether or not you fly on that particular airline. Today the airline credit card landscape is changing. The biggest change is the development of airline mileage program alliances. Continental OnePass is now teamed up with Northwest Worldperks. Delta SkyMiles is linking with United Mileage Plus which is linked with the Star Alliance. USAirways Dividend Miles has hooked up with American Airlines AAdvantage program which it part of emerging OneWorld program.

Aaaauuugggghhhh!

You get the picture, what was simple is rapidly becoming more complex. It can work to your advantage. The bottom line is to do your homework and hook up with the best possible program for your needs then focus your spending with only one of the alliances offers mileage that can be pooled. Only the American/USAirways program allows frequent fliers to combine mileage from each program to qualify for frequent flier tickets.

The Diners Club Rewards program is effective with all the airlines listed below, but the American Express Membership Rewards program links with only one airline in each alliance.

Let's look at the specifics. For example, between the Northwest and Continental programs it is a tossup. The main pitfall is the inability of card holders to pool miles between programs; therefore, pick one program or the other. Note that Continental is a member of the Amex program as well, which adds another dimension to the refundability of mileage.

Between USAirways and American Airlines, the choices are more difficult. I suggest that you take the American Airlines card. You get an enrollment bonus plus the miles can be used with OneWorld partners. Members can freely pool their miles between programs, so if you currently have the USAirways card and want to start using the AAdvantage card you won't be penalized, and if you happen to have an American Express card you can move mileage to your USAirways account and then redeem them for AAdvantage miles.

When you have to decide between the Delta or United Card for mileage the decision would be United since it has a generous enrollment bonus and is linked with the Star Alliance. Delta is another of the Membership Rewards airlines so most benefits from the Delta card will accrue with either American Express or Diners Club. (Please note: Delta is offering a great sign-up bonus if you get your card before May 23, 1999. This offer itself is a reason to carry the card.) Mileage can be used to redeem tickets on either airline, however the mileage may not be pooled.

Charlie Leocha is the Boston-based author of Travel Rights: Know the Rules of the Road and the Air Before You Go. Cheap Charlie appears every Monday on this site. E-mail him at cheapch@aol.com or access his Web site.