Barclay To Offer AAdvantage Aviator Silver & Red Cards

In case you’ve been living under a rock, you’ll know that U.S Airways and American Airlines are set to merge. This is a complicated process and one I’ve been trying to avoid thinking about (or posting about) because it’s mostly rumors (the majority of which are unfounded) and gossip.

One thing that I’ve been particularly interested in though was what Barclay was planning to do with existing cardholders that have the U.S Airways credit card. I can’t imagine Barclay are happy considering they are losing their only airline partner for co branded cards. When the merger is complete, Barclay will not be able to accept new applications for the U.S Airways product as Citi will be the sole issuer for American Airlines.

AAdvantage Aviator Silver Credit Card

Barclay is doing something a little sneaky, they are allowing customers that currently have a U.S Airways card to upgrade to a new card called the “AAdvantage Aviator Silver Credit Card”. At the moment this looks like it’s by invitational only, but it wouldn’t surprise me to see it offered to everybody. Here are the key features of the silver card:

• $195 annual fee (billing on your next annual fee date in 2015)
• Earns at the following rate:
  • 3x miles on American Airlines & U.S Airways purchases
  • 2x miles on hotel and car rentals
  • 1x miles on all other purchases
• Earn 5,000 elite qualifying miles per $20,000 in annual purchases (maximum of 10,000 EQM’s)
• Travel perks:
  • 10% of your redeemed miles back (maximum of 10,000 per year)
  • First checked bag free for you and up to 8 of your travelling companions
  • Companion certificate when you spend $30,000 or more in a year (based on your account anniversary). Certificate is good for up to two guests and costs $99 plus taxes and fees
  • Priority boarding
  • 25% discount on in-flight purchases on drinks, food and headsets
• Card will be a MasterCard world elite
• No anniversary bonus for cardholders that currently receive this benefit

AAdvantage Aviator Red Credit Card

Consumers that don’t opt to “upgrade” to the silver card will have their U.S Airways credit card rebranded to the AAdvantage Aviator Red Credit Card. If your U.S Airways card currently has the 10,000 mile anniversary bonus, you’ll keep this.

• $89 annual fee (billing on your next annual fee date in 2015)
• Earns at the following rate:
  • 1x miles on American Airlines & U.S Airways purchases
  • 1x miles on hotel and car rentals
  • 1x miles on all other purchases
• Travel perks:
  • 10% of your redeemed miles back (maximum of 10,000 per year)
  • First checked bag free for you and up to 8 of your travelling companions
  • $100 flight discount each year with $30,000 or more in purchases
  • Priority boarding
  • 25% discount on in-flight purchases on drinks, food and headsets
• Card will be a MasterCard world elite
• Those with an anniversary bonus of 10,000 miles will continue to receive it. 

Is It Worth The Switch?

Those being offered the switch will have until December 1st, 2014 to decide. I’d wait to ensure all the details are out in the open fully before making a decision either way. Personally I don’t find value in the Aviator silver card, I have a U.S Airways card with the anniversary bonus and I’ll keep this as I get more than 0.89¢ a point.

I can’t really imagine a situation where the Silver card makes sense as the major differences are only the earn rate, the EQMs and the companion certificate. I guess if you’re spending a boat load of cash on U.S Airways/American Airline flights then this card could make sense but I’m in the habit of trying to use my miles for flights rather than cash. Even with a lot of work paid for trips this card doesn’t even come close to making sense for me.

Timeline For The Switch

As mentioned, you’ll make your decision by December 1st, 2014. After your statement cycle ends in January 2014 you’ll be upgraded to the new product (presumably to the red or silver product depending on what you choose), at this stage you’ll start receiving the new benefits of the card. When the programs actually merge you’ll receive the updated card.

I guess this also means that the programs won’t be merging anytime this year. I’m curious to see what Barclay does in response to losing one of their main promoted credit cards for new applicants. I imagine this will give their team time to work on other partners to beef up their offerings. Hopefully this means better sign up bonuses and benefits on their existing products and maybe some new product launches.

Final Thoughts

If the red aviator product comes with both the 10% mile reimbursement and the 10,000 anniversary bonus it suddenly makes a lot more sense to keep the card than cancelling it (even with the 10,000 anniversary bonus it’s still worth keeping). I guess Barclay was able to negotiate a pretty good deal for themselves as part of the merger. It’ll be interesting to see what happens when people call the retention line, will Barclay be open to waiving the annual fee or offering more bonus points or not? Will they offer the 10,000 anniversary miles that don’t have that as part of their cad?

The only downside is that the 10,000 anniversary bonus is no longer available for new sign ups. Unless of course you’re a preferred member in which case you can still get it. If you know of a publicly available working zombie link, please share.

What are your thoughts on the new products offered by Barclay? Did you receive an invitation to “upgrade”? Will you take them up on it? If so why?

Hat tip to TPG