American and United “Pass Programs” Under the Microscope

December 2014
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Often more than the lowest fares; sometimes less if you know what you’re doing.

These programs, designed for business or last-minute leisure travelers, are in effect Travel Debit Cards offering three options: Purchase miles in advance and have the account debited each time you fly; purchase prepaid net fares or get up to 20% discounts on full-fare tickets.

The programs work best on routes where published fares are high. They’re also good for short-notice trips, which is why they’re well suited to business travelers. The cards are good for both Business and First Class, but keep in mind that most advance-purchase discounted premium fares beat Pass Program fares (but not all!). Currently, two U.S. airlines offer the cards, American and United.

Here’s a look at each:

American Airlines’ AirPass Program

Valid for domestic or international travel on any American Airlines flight and for companion travel as long as the other person travels on the same itinerary. Benefits also include complimentary Admirals Club Membership, free confirmed upgrade on AA flights (international or domestic) on some fares, last-seat availability in all classes (Y, J, F), and exemption from change or cancellation fees. Detailed information: (800) 433-6355 or on the AirPass website.

The AA AirPass is offered in increments of $10,000, at a rate of 40¢ per mile; purchases less than $10,000 cost 42¢ per mile. Miles charged for a flight equal the flight miles times a cabin multiplier: 90% to 180% for economy, 108% to 216% for Business Class, 175% to 300% for First. Frequent flyer benefits, including class-of-service bonuses and elite credit, are earned just as they are with purchased tickets.

What stands out about the AA AirPass is the free upgrade offer from Coach to Business Class on many AA flights. Any international or domestic fare that also offers a published

YUP fare (or YRUP) qualifies for the upgrade, which is done at the time of booking. To check which routes offer such published fares contact the airline directly or a travel agent. BUT: You must direct them to this little-known nuance; if not, they will quote you significantly more.

Sample American Airlines AirPass Potential

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United Airlines PassPlus

This Star Alliance carrier offers two different cards: PassPlus Secure (fixed fares) and PassPlus Flex (discount on published fares). Both cost $25,000 for individuals; $50,000 for corporations (can be used by anyone in the corporation). Detailed information: (877) 357-4515 or on the PassPlus website.

PassPlus Secure offers prepaid fixed-fare tickets on domestic and international routes, a plus if you consistently fly a specific route and need unrestricted tickets. Travel is valid on partners All Nippon, Austrian Airlines, and Lufthansa; and First Class fares are eligible for last-seat availability (no inventory restriction as long as a seat is available). Additional benefits include exemption from change and cancellation fees. See chart to the right for samples.

PassPlus Flex offers a 2-20% discount on published domestic and international fares, that is also valid on partners All Nippon, Austrian Airlines, Brussels Airlines, Lufthansa, and SWISS. (Change and cancellation fees apply, based on the published fare paid.)

United Airlines’ PassPlus Programs Compared

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[["Route","Miles","Class of Service","Cabin Multiplier","AirPass R\/T*","AirPass YUP Upgrade to Business Class R\/T*","Lowest Published Fare R\/T*","Full Published Fares R\/T"],["Chicago - Beijing","13,142","First","2","$10,513 ","n\/a","$6,599 ","$31,325 "],["New York - Londo","6,926","Business","2","$5,540 ","$2,770 ","$4,128 ","$14,051 "],["JFK - Los Angeles","4,922","Business","1.5","$2,953 ","$1,772 ","$2,010 ","$5,926 "]]
<small><em>*Fares in chart DO NOT include taxes, which amount to $600 to $1,200 on international routes.</em> <em>**Often requires an advance purchase, has minimum and maximum stays, is inventory controlled, and has other travel restrictions that the AirPass doesn’t have.</em></small>
[["Route","Class of Service","PassPlus Secure*","PassPlus Flex*","Lowest Published Fare**","Full Published Fares"],["Chicago - Beijing","First","$19,998 ","$5,200 ","$6,500 ","$28,019 "],["Houston - Rio de Janeiro","Business","$7,998 ","$10,032 ","$4,708 ","$13,940 "],["JFK - San Francisco","Business","$2,998 ","$1,942 ","$1,982 ","$5,920 "]]
<small><em>*Secure and Flex fares in chart DO NOT include taxes, which amount to $600 to $1,200 on international routes. Flex fares based on using A or C premium fares for international travel. **Often requires an advance purchase, has minimum and maximum stays, is inventory controlled, and has other restrictions.</em></small>