Prepaid Travel Cards

October 2007
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These cards, designed for business travelers, are like travel debit cards: You purchase a certain number of miles in advance and the account is debited each time you fly.

Such cards work best when published fares are high, such as those on routes to Asia and the South Pacific. They’re also good for short-notice trips, which is why they’re well suited for business travelers. But in fact, almost any discounted Business Class fare beats the travel card. Currently only two airlines offer the cards. Here’s a look at each.

American Airlines AAirpass Program The card can be used for domestic or international travel on any American Airlines flight; it can be used for companion travel, and carries complimentary Admirals Club Membership. It is offered in one- and two-year versions. The one-year AAirpass costs $11,250 for 25,000 flight miles; and the two-year $22,000, is good for 50,000 miles. Frequent flyer benefits are earned just as they would be with paid published fare tickets. Additional card miles can be purchased at 45¢ per mile for 7,500 or more miles; otherwise the cost is 47¢ per mile for economy, with varying surcharges for Business and First Class. The table at right shows the savings that can accrue with the card, and for comparison, a few routes where it doesn’t pay.

Information: (800) 433-6355 or www.aairpass.com.

United Airlines Assured Plan This Star Alliance carrier offers a prepaid-flight miles card called the Assured Plan, and for individuals the plan costs $15,000 for 37,500 miles and $25,000 for 62,500 miles. Assured Plan miles are priced at 40¢ per mile. Additional miles may be purchased in blocks of 12,500 for $5,000, which works out to 40¢ each. Benefits also include Red Carpet Club Membership and 50% bonus miles. Companion ticket purchases are not allowed at the individual level.

With the Assured plan, the redemption rate is determined by miles flown, on a one-way basis. For international travel, redemption rate is: 160% for Business Class and 223% for First Class on flights up to 5,000 miles; 118% for Business Class and 203% for First Class on flights 5,001 to 7,000 miles; and 105% for Business Class and 195% for First Class on flights longer than 7,000 miles. For domestic travel, including Canada and Mexico, redemption rate is: 0-500, 128% for Business Class and 150% for First Class; 500-1900 miles, 120% for Business Class and 125% for First Class; and 1905+ miles, 128% for Business Class and 140% for First Class. Additional benefits include no change or cancellation fees. Information: (800) 727-7752 or www.united.com/page/article/0,6722,2964,00.html.

SAMPLE FARES

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[table_opt style="gray-header" id="1723 " width="" alignment="center" responsive="all" heading="thcenter" rows="tdcenter"]

These cards, designed for business travelers, are like travel debit cards: You purchase a certain number of miles in advance and the account is debited each time you fly.

Such cards work best when published fares are high, such as those on routes to Asia and the South Pacific. They’re also good for short-notice trips, which is why they’re well suited for business travelers. But in fact, almost any discounted Business Class fare beats the travel card. Currently only two airlines offer the cards. Here’s a look at each.

American Airlines AAirpass Program The card can be used for domestic or international travel on any American Airlines flight; it can be used for companion travel, and carries complimentary Admirals Club Membership. It is offered in one- and two-year versions. The one-year AAirpass costs $11,250 for 25,000 flight miles; and the two-year $22,000, is good for 50,000 miles. Frequent flyer benefits are earned just as they would be with paid published fare tickets. Additional card miles can be purchased at 45¢ per mile for 7,500 or more miles; otherwise the cost is 47¢ per mile for economy, with varying surcharges for Business and First Class. The table at right shows the...

[["Route","One- way miles","Class of Service","AAirpass cost","One-way, regular fare","Savings"],["Chicago- New York","725","First","$508","$649","$140 \/ 22%"],["Chicago- Tokyo","3,634","Business","$2,943","$3,523","$579 \/ 16%"],["Dallas- Frankfurt","4,179","Business","$2,256","$3,238","$981 \/ 30%"],["Los Angeles- Tokyo","5,130","First","$5,540","$4,864","None"],["Miami-Rio De Janeiro","5,451","Business","$2,452","$3,538","$1,085 \/ 31%"],["New York- Paris","6,284","First","$5,372","$5,311","None"],["San Francisco- Delhi","9,322","Business","$5,033","$3,359","None"]]
[["Route","One-way miles","Class of Service","Assured Plan cost","One-way, regular fare","Savings"],["Chicago-New York","725","First","$435","$649","$214 \/ 33%"],["Los Angeles-Sydney","7,509","Business","$3,153","$5,816","$2,662 \/ 46%"],["Los Angeles-Tokyo","5,451","Business","$2,572","$3,538","$965 \/ 27%"],["San Francisco-Honolulu","2,397","First","$1,342","$906","None"],["Wash., DC-Paris","3,849","First","$3,433","$6,524","$3,090 \/ 47%"]]
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