US Airways 2011 Annual Report Download - page 18

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Table of Contents
Frequent Traveler Program
All major airlines offer frequent flyer programs to encourage travel on their respective airlines and customer loyalty. Our Dividend Miles frequent flyer
program allows participants to earn mileage credits for each paid flight segment on US Airways, Star Alliance carriers and certain other airlines that
participate in the program. Participants flying in first class or Envoy class may receive additional mileage credits. Participants can also receive mileage credits
through special promotions that we periodically offer and may also earn mileage credits by utilizing certain credit cards and purchasing services from non-
airline partners such as hotels and rental car agencies. We sell mileage credits to credit card companies, hotels, car rental agencies and others that participate
in the Dividend Miles program. Mileage credits can be redeemed for travel awards on US Airways, Star Alliance carriers or other participating airlines.
We and the other participating airline partners limit the number of seats per flight that are available for redemption by award recipients by using various
inventory management techniques. Award travel is generally not permitted on blackout dates, which correspond to certain holiday periods or peak travel
dates. We charge various fees for issuing awards dependent upon destination and booking method and for issuing awards within 21 days of the travel date. We
reserve the right to terminate Dividend Miles or portions of the program at any time. Program rules, partners, special offers, blackout dates, awards and
requisite mileage levels for awards are subject to change.
Ticket Distribution
Passengers can book tickets for travel on US Airways through several distribution channels including our direct website (www.usairways.com), our
reservations centers and third party distribution channels, including those provided by or through global distribution systems (e.g., Amadeus, Sabre and
Travelport), conventional travel agents and online travel agents (e.g., Expedia, Orbitz and Travelocity). In 2011, internal channels of distribution accounted
for 34% of our ticketed passenger segments. Internet sites accounted for 62% of our ticketed passenger segments, of which 30% originated from our website,
while 32% originated from online travel agent sites. To remain competitive, we will need to manage successfully our distribution costs and rights, increase
our distribution flexibility and improve the functionality of third party distribution channels, while maintaining an industry-competitive cost structure. For
more discussion, see Part 1, Item 1A, Risk Factors — "We rely on third party distribution channels and must manage effectively the costs, rights and
functionality of these channels."
Seasonality
Our results are seasonal. Due to the greater demand for air and leisure travel during the summer months, revenues in the airline industry in the second
and third quarters of the year tend to be greater than revenues in the first and fourth quarters of the year.
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