United Airlines, Visa and Chase Negotiate a New Deal
Last week, Chase, Visa and United Airlines announced the companies would renew their partnership and extend the United MileagePlus credit card program. The three businesses have been partnered for more than 20 years.
Under this renewal, United Airlines, which operates nearly 5,000 flights each day, was able to negotiate better terms. While the press release didn’t discuss the specific terms of the financial agreement, United Airlines recently filed an SEC report estimating the impact of the agreement would increase revenue by “approximately $200 million” for the second half of 2015.
One of the cards in this program, the United MileagePlus Explorer Card, gives consumers an attractive way to earn rewards on their travel. Cardholders receive 30,000 bonus miles by spending $1,000 during the first three months of card membership. They earn two miles for every $1 spent on United purchases and one mile for every $1 on all other transactions. There are no foreign transaction fees and no annual fee for the first year ($95 thereafter). Cardholders also receive priority boarding and two passes each year to the United Club.
Tom O’Toole, senior vice president and chief marketing officer at United said the deal “creates great value for our customers, offering them an unmatched set of products and services.” Those programs include the United MileagePlus products, “exclusive events with InsideAccess.com,” and discounts at a number of hotels and resorts.