Fellow road warrior, *josh*, received the following email from Delta, introducing a new status level above the current Platinum level:


As Delta and Northwest Airlines® merge into one airline, we are committed to delivering the best-in-class loyalty program in the industry. Over the next nine months, not only will we roll out an improved SkyMiles Medallion® program that retains all of the features of the existing program, but we will also introduce new features that no other airline offers.

We heard you loud and clear and have retained all of the Medallion benefits you have asked for, and made the Systemwide Upgrade Certificates redeemable on the day of departure. As a Medallion, you will continue to be offered:

  • Unlimited complimentary upgrades
  • The ability to earn one elite qualifying mile per mile flown regardless of booking channel
  • A 100% mileage bonus
  • Preferred security access, priority boarding and seating, and waived checked baggage fees for everyone in your itinerary
  • A 500-mile minimum on all flights for all customers
  • No co-pays on any mileage upgrades

In addition, we will roll out new industry-leading benefits for our very best and most valuable customers like you, including:

  • A new Diamond Medallion tier - for those who earn 125,000 MQMs or 140 segments in a calendar year - that will provide the richest set of benefits of any airline, including a complimentary Delta Sky Club™ membership, an industry-leading 125% mileage bonus, and waivers for all Award and baggage fees. Should you achieve the Diamond threshold during 2009, you will be recognized as a Diamond Medallion when the program launches in early 2010
  • "Rollover MQMs" - an industry-first that allows you to now roll over any Medallion Qualification Miles (MQMs) above a Medallion threshold. For example, if you earn 150,000 MQMs this year - 25,000 MQMs higher than the Diamond Medallion requirement - those 25,000 MQMs will automatically roll over and count toward your 2010 MQM balance
  • Choice Benefits - you will be able to choose from a selection of benefits to suit your needs, including new Systemwide Upgrade Certificates now redeemable on the day of departure, bonus miles, the ability to gift Medallion status and Delta Sky Club One-Day passes
  • Unlimited complimentary upgrades on Award Tickets
  • Waived direct ticketing charges when purchasing tickets or Award Tickets via our reservation or airport agents

This is a classic business school marketing strategy, whereby a new “premium” product is used differentiate without competing directly on price (or in this case, points).  As josh noted in his email to me, it will be interesting to see if other airlines follow this strategy as this new level clearly provides benefits not available at the highest status level for other airlines.

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Comments

  1. Paul Hackett 19 December 2009 at 07:58PM:

    The Diamond level has inherent flaws that need to be resolved if it is to become a ‘best in class’ program. While the roll over feature sounds appealing, let me explain a scenario that creates a very unappealing aspect of the program. If in December 2009 you are sitting at say 124,000 flown files, you might think about making that last flight to tip you into the Diamond level. Bear this in mind, the real differences between Platinum and Diamond are minimal. I think it’s fair to say that if you can afford to fly 124,000 miles in a year, membership of the sky club should not be an issue!. So, here’s your choice, stick at 124,000, fly that last flight with another airline and roll over 49,000 miles (75,000 to 124,000) and be almost two thirds of the way to Platinum for 2010. In this economy, I think there will be a few less Platinum members to compete with for those upgrades in 2010 anyway. So, if you think next year might be a quieter year for you in terms of flying, why not have the next two years at the Platinum level. BTW, I realized this after I turned 125,000 and wish I could turn the clock back.

  2. JoeW 09 February 2010 at 06:46AM:

    With MQ M bump incentives last year, I ended the year with 195,000 MQMs. That gives me Diamond this year and practically platinum for the following year. With the rolllover, It’s February and I am already Platinum for 2011. I called Continental and they matched my Delta level. So, this year I will give my remaining business to Continental and maintain Platinum levels on both airlines (Diamod for Delta) for 2010 and 2011. If you fly a lot, the roll-over option is great. Sadly I am silver on USAir as well. Status is important. Most of us know how bad service is but if you have no status with an airline, it is much worse.

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