Lucrative Holes for Premium Travelers in Delta-Northwest Merger

March 2009
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Award Chard Discrepancies Uncovered—Up to 46%

The ongoing saga of the Delta/Northwest merger might not be as captivating as that other Atlanta-based epic, Gone with the Wind, but for SkyMiles members with a passion for savings, things are getting intriguing. If discounts of up to 46% on international Business Class award seats get your pulse racing, this is required reading.

In early December, Delta, speaking for the combined enterprise, announced that Northwest’s WorldPerks two-tier award chart would be replaced by a three-tier plan resembling its own (low, medium, and high, with ascending availability at escalating rates). But when the revised chart was released, the added tier was applied only to economy awards. The established two-tier plan for Business/First Class was unchanged.

Northwest’s faithful breathed a sigh of relief, seeing that their premium-cabin mileage rates hadn’t leapt to Delta’s sky-high levels—though members were hit with an immediate 5,000 mile price hike for steerage seats.

Fast-forward to February and Delta’s announcement that members of either loyalty program can now transfer miles to the other, at no charge. To the casual observer, this might seem like little more than another step toward program consolidation, but by gaining access to the WorldPerks two-tier chart, all SkyMiles members have, potentially, twice the buying power they had a month ago. Even though the discount is relative, based on the disparity between charts, Delta’s members who were halfway to an international Business Class award are now just a few miles short using Northwest’s chart, and those who were close to Delta’s award levels can think about taking a friend ... or another trip.

Why is Delta keeping Northwest’s premium award chart active? Whether it’s an oversight, or a gift to members for staying on board through the transition, we’ll probably never know. One thing is certain, though, it won’t last forever. Whichever program you belong to, use Northwest’s chart to book your premium-cabin awards on as soon as possible.

The Delta/Northwest free-trade agreement offers some savings opportunities to upgrade seekers, too. Members who invest a bit of research into lowest upgradeable fares can turn the new mileage-transfer flexibility into respectable savings.

My survey of several popular European routes found that upgradeable fares from both carriers are virtually identical. That makes a case for shifting miles to Delta, where upgrades cost 50,000 miles—10,000 less than with Northwest.

When flying from Los Angeles to Honolulu, though, a different strategy applies. Northwest’s upgradeable fare of $664 is almost half of Delta’s $1,279, so shift 35,000 miles to WorldPerks for the upgrade and save $615.

As always—especially when you have giant, partner-program discrepancies—look both ways before crossing.

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