How I Value my Airline Miles

Now that we've worked through many of the credit card issues, let's look at which miles have the highest values and why.

I do not collect miles in every program worldwide but do have my favorites that I've ranked based on their benefits to me. If we were allowed to sell miles, which we can not of course, I have placed a value per mile to me in parentheses () by the airline name. These values are mine only and will vary by individual, their preferences and home airports. If you strongly disagree, I'd sure like to hear your opinion why. Drop me a line at ingy104@gmail.com

1. Without question the highest value mile to me is from British Midland (2.5) or BMI as we call it.
The cash and miles option allows you to redeem 1/2 of the miles on the award chart and make a copayment with cash. Some of these options offer a huge savings and stretch your miles.
a. One way award redemptions are available for one half the round trip price.
b. Being a foreign carrier in the Star Alliance network, as a gold member, I am granted lounge access in US domestic airports.
c. Easiest to requalify for the top tier status. The first year it takes about 58,000 miles to reach top tier. After that it is 36,000 miles to requalify.
d. Huge earnings on Business and First Class revenue tickets particularly after reaching top tier. You can earn 625% of actual miles flown and if I get bumped on a United flight to First Class, I recode my miles to go to BMI.

2. The highest valued mile for domestic airlines in my mind is hands down American Airlines (1.75) miles. I wish I could fly American more often but the service from Savannah is so limited it makes it hard to do. I still achieved lifetime Gold status with them so I'll always have and exit row seat.
a. They have the best domestic award ticket and decent availability. The bonus with American is that the award ticket can have both a stopover and an open jaw.
b. Until September 30th of this year the Oneworld Around the World product is far superior to anything offered by the Star Alliance or Skyteam and with lower redemption levels
c. American Airlines miles can be converted into Hilton Honors points at a 1 AA to 2 HH ratio. It is not always the best use of miles, but if you have status with Hilton and/or a Hilton American Express Platinum card the elite awards like the GLON and AXON can offer a great value for your converted miles.
d. Youngsters, listen up. At the present time, all miles earned in the Aadvantage program count towards lifetime status. You buy flowers with your card, rent a car, stay in a hotel, play a game, fly a flight, receive an elite bonus, eat in an Idine restaurant, etc, etc etc, it all counts towards lifetime status. I first accumulated Northwest miles to the tune of 1.3 million, before I switched to AA. If they had all been AA miles, I'd be at Lifetime Platinum (2MM) with them meaning double miles every single time I stepped on board, higher upgrade priority for life, more service during periods of irregular ops, and the ability to book exit row seats at time of booking.

If you are young, a mileage hound and American services your local airport, keep Lifetime status in mind.

My number three goes to United Airlines (1.6) partly on sentiment and partly because they treat me right.
a. I have the ability to access their lounges because of my BMI status.
b. Awards are readily available.
c. The Star Alliance network is huge and offers worldwide service with the only leaking area being South America.
d. Top tier members earn confirmed regional upgrades and systemwide upgrades without copays (hello American) that can be used at time of booking.
e. United is weak on promotions for partners as far as I am concerned. They could step it up a bit there.

Number 4 is Continental Airlines (1.4)

I just like these guys and am glad they are coming into the Star Alliance. I don't fly them often, but every experience has been pleasant. I understand award availability is tough and their members call it NonePass. I have always traded my CO miles out or converted them to something else. But they do have quite a few Promos which lets me pump up the balances. Look for them tied in with Chase Bank , not only for credit cards, but also opening new bank accounts, both personal and business. I'm currently due 21K for opening a checking account with a direct deposit and purchase of a $25 debit card. You are allowed one bonus promotion a year so that could be close to 50K in free or cheap miles if you have a small business (ahem)

Delta/Northwest (1.25) are near the bottom for me.

Lots of promotions, fair award availability with Northwest but that will become Delta Skymiles this winter and who knows what will happen then. Northwest planes have no entertainment even in First Class except transatlantic and pacific. Unlimited upgrades for platinum members is nice, but that will be history with the merger. On the plus side, it will be a huge airline with destinations worldwide when the dust settles. I live in a Delta and Northwest city both in the north and south, but just can't get excited about them.

US Airways (1.1) heads up the bottom for me. I won't fly them unless it is First Class and I can credit to BMI. They charge big bucks for their credit cards ($90), and have lousy customer service. I struggle every single time I get award with them and quite honestly, I can't spend much time working on promos with them as I expect them to be gone, dissolved or bought out in the next 24 months.

The other shining star is Southwest Airlines. I don't live in a Southwest city but wish I did. They make a profit, give you point A to point B at a reasonable price. There are no frills but you don't pay for any. I can;t get used to the credits system they have along with Airtran but each credit is worth about $20 in my mind so a RT would be worth $320 to me if we could sell them.

I know you will all have your own opinions and that is part of the reason I wrote this. To make sure you do have an opinion of value. If you are saving miles for all international first class travel, these values will seem low to you. But remember a mile is worth what somebody will give you for it (if they could be sold) and secondly what you would pay for a first class ticket to Europe, not what they are charging. Nobody in their right mind would pay those prices if they could avoid it.