Now that the dust has settled on United Airline’s introduction of this novel product, it’s time to get some perspective on the offer.

The Deal United offers three different levels of the card: Premier for $5,000; Premier Executive for $10,000; and 1K for $20,000. In effect, purchasers have a travel debit account with United and draw down the balance each time a ticket is purchased from the airline or from its Star Alliance partners. They also receive the elite benefits (class-of-service or elite status bonuses) corresponding to the various levels, and a 5% discount on domestic United, United Express, and Ted flights when the card is used for qualifying purchases on united.com. Cards expire on Feb. 28, 2006. (More information is at www.united.com/prepaidtravel.)

My Take The card offers instant gratification to those who don’t enjoy elite status on United. (Why not get the benefits while you actually rack up the qualifying miles?) And for those who are United elites and flying full-fare Business or First Class, the 1K upgrades could save lots of money because signing up for the 1K nets six system-wide upgrades. You could use two upgrades to fly Business on a New York-Sydney economy fare ($2,000), a ticket that normally goes for $9,000+. Do the math: Three such round-trips would save you $21,000, and still leave you with $14,000 on the card.

Restrictions and Loopholes You can’t use the $20,000 card to buy travel for a companion, but here's the way around it: Use the system-wide upgrades for their travel.

Fine Print Use it or lose it. If the card’s balance on Feb. 28, 2006, is more than $250, you receive a voucher for half of the remaining balance (less a $25 processing fee) good for travel on United, United Express, or Ted. While this sounds like (and may be) a drawback, if you used the six system-wide upgrades effectively, you could still end up with a considerable unused balance and the program still saves you lots of dough. Those with balances less than $250 get a voucher for the remaining amount.

Other Elite Upgrade Benefits Every 10,000 paid miles flown on United, Ted, and United Express in a calendar year nets four 500-mile e-upgrades. Purchase a full-fare economy electronic ticket (Y or B class) for travel in the United States (including Hawaii), Canada, the Caribbean, and Central America and you’re entitled to free upgrades, subject to availability.

Other 1K Upgrade Benefits In addition to the 500-mile upgrades, two confirmed North America e-upgrades are given each quarter in which you fly at least 10,000 paid qualifying miles. Upgrades are valid for travel within North America, the Caribbean and Central America.

AAdvantage Buy-Back

If you didn’t re-qualify for elite status, take advantage of this offer to buy your way back in. AAdvantage Platinum members who earned at least 30,000 elite qualifying miles or points (or 36 segments), and AAdvantage Gold members who earned at least 15,000 elite qualifying miles or points (or 18 segments) pay less than those who didn’t. (See chart below.)

Who’s Eligible?

Current AAdvantage Platinum and AAdvantage Gold members, provided they have flown at least one elite qualifying segment during 2004 and didn’t take advantage of this offer last year.

Details: aaelite.points.com.

[table_opt id="4988" style="blue-header" heading="thcenter" rows="tdcenter" responsive="all"]