Better than a mileage run for business owners?
Dec 12, 2000 | 8:59 pm
#1
Original Poster
Join Date: Sep 2000
Posts: 42
Better than a mileage run for business owners?
I was just surfin around on aadvantage.com, which is the website for businesses that want to give away aadvantage miles. I tried out their online rate calculator and noticed that a business owner can purchase 75,000 miles in the form of 500 mile vouchers for $1,867, including processing fees and federal tax. So could a business owner in theory buy 75,000 miles for that amount and use them to pay for his own travel at some future time? Of course to break even, the businessman would have to redeem 3 roundtrips each of which would otherwise cost him >= $650, which isn't hard to find.
just wondering if this is even better than a mileage run for someone who owns a business.
just wondering if this is even better than a mileage run for someone who owns a business.
Dec 12, 2000 | 10:15 pm
#2
FlyerTalk Evangelist
Join Date: Jun 2000
Location: Sunny SYDNEY!
Programs: UA Million Miler. (1.9M) Virgin Platinum. HH Diamond + SPG Gold
Posts: 32,351
Here's a suggestion to take this interesting idea a step further. (Maybe post it on the AA board as you'll get even wider input!). HOW many points does AA need to fly you from say east coast USA to Australia in Business Class? Or to Asia? If it is close to 75,000 you are getting a $7000 type fare for $1800 is how I'd look on it! 
------------------
~ Glen ~
------------------
~ Glen ~
Dec 13, 2000 | 1:35 am
#5
In Memoriam, FlyerTalk Evangelist
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
And remember award availability may be varied. If you pick a route with high award demand, you could end up with miles that you may not be able to use. The farther out you can plan, the better chance of finding a routing of your choice (and a cheaper ticket that you might just be able to pay for). You do have some variables here that impact your planning.
Dec 13, 2000 | 8:28 am
#6
Suspended
Join Date: Jun 1999
Location: Los Angeles
Programs: Loyal to Myself
Posts: 8,303
Most of the airlines that sell miles in voucher books limit the number that can be added to the account of any one person, specifically to avoid having purchased miles redeeemed for awards this way.
I haven't looked at AA's program specifically, but I am reasonably certain you will find a disclaimer to this effect in it somewhere.
I haven't looked at AA's program specifically, but I am reasonably certain you will find a disclaimer to this effect in it somewhere.
Dec 13, 2000 | 9:51 am
#7
Join Date: Nov 1999
Location: Los Angeles, CA, USA
Programs: AA PLT, SPG GLD, PC PLT SPIRE
Posts: 4,531
Originally posted by Brian:
Most of the airlines that sell miles in voucher books limit the number that can be added to the account of any one person, specifically to avoid having purchased miles redeeemed for awards this way.
Most of the airlines that sell miles in voucher books limit the number that can be added to the account of any one person, specifically to avoid having purchased miles redeeemed for awards this way.
No more than 50,000 miles from any one company can be credited to your SKymiles account in any calendar year.
If you are looking to redeem a 100,000 mile award, I guess you can just give yourself 50,000 miles at the end of one year (make sure they post before year end) and then give yourself 50,000 miles at the beginning of the next year?
Dec 13, 2000 | 10:05 am
#9
Original Poster
Join Date: Sep 2000
Posts: 42
In case anyone's interested...I found this on Delta's site:
"Your company purchases SkyMiles in the form of vouchers worth either 500, 1,000 or 5,000 miles, giving you the flexibility to order different denominations and quantities. The minimum order is $1,200 (60,000 miles) plus a $75 administrative fee."
"Your company purchases SkyMiles in the form of vouchers worth either 500, 1,000 or 5,000 miles, giving you the flexibility to order different denominations and quantities. The minimum order is $1,200 (60,000 miles) plus a $75 administrative fee."
Dec 13, 2000 | 1:02 pm
#10
Join Date: Aug 2000
Location: Tampa, FL USA
Posts: 467
Having purchased Aadvantage miles in quantity for business promotion, we ran into exactly this problem. We awarded 100,000 miles as a door prize at a trade show only to learn that AA will only allow 35,000 miles to be deposited in any one year.
Dec 13, 2000 | 2:36 pm
#11
Join Date: Sep 1999
Location: Silicon Valley
Programs: AA:PLT&3MM, HGP:DIA, SPG:GOLD
Posts: 1,896
Here's the blurb from aadvantage.com regarding how much an individual can be awarded:
In no event will Company a) distribute Miles to Employees for use in Company's business travel; or b) provide more than 35,000 Miles to an individual Employee, Customer or Donor during any 12-month period.
Dec 13, 2000 | 3:16 pm
#13
Original Member
Join Date: May 1998
Posts: 702
All of the major airlines prohibit the use of purchased miles ("incentive miles") for business travel by the purchasing company.
If they catch you (and it should be fairly obvious what you're doing), they will void your purchased miles and possibly cancel your FF account. And they aren't bluffing.
If they catch you (and it should be fairly obvious what you're doing), they will void your purchased miles and possibly cancel your FF account. And they aren't bluffing.