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Old Nov 1, 10, 3:43 am   #1
 
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buyAAMiles / giftAAMiles Bonus for November 2010 - 2K bonus / 6K purchased

So, the ShareAAMiles October bonus is over and there's a new bonus of 2,000 miles for every 6,000 purchased through BuyAAMiles or GiftAAMiles through November. The cap has also been lifted, so you can buy up to 60,000 miles for the calendar year (which would work out to 80,000 for $1500 once the bonus clears--6 to 8 weeks after the promotion ends).

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MODERATOR'S NOTE


N.B. EXTENDED through the end of 2010.

http://www.aa.com/i18n/AAdvantage/pr...asingMiles.jsp

Quote:
buyAAmiles
Special Offer: Give Yourself the Gift of Travel Plus Earn up to 20,000 Bonus Miles!

Between now and November 30, 2010, when you buy the AAdvantageŽ miles you need to book your travel now, you'll earn a special bonus — for every 6,000 miles you purchase, you'll earn 2,000 bonus miles, up to 20,000 bonus miles! And for the month of November only, you can purchase up to 60,000 miles per account per calendar year. Go ahead — give yourself the gift of travel this holiday!

giftAAmiles
Special Offer: Give the Gift of Travel and Earn up to 20,000 Bonus Miles for Yourself!

This holiday, give the gift of travel by purchasing AAdvantageŽ miles for a loved one. When you purchase miles between now and November 30, 2010, you'll earn a bonus for yourself — for every 6,000 miles you purchase, you'll earn 2,000 bonus miles, up to 20,000 bonus miles! And for the month of November only, you can purchase up to 60,000 miles per account per calendar year.
For reference, here are the last two threads regarding previous promotions:

http://www.flyertalk.com/forum/ameri...-transfer.html

http://www.flyertalk.com/forum/ameri...purchased.html

dstan
AA Forum Co-Moderator

Last edited by JDiver; Dec 3, 10 at 11:43 am.
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Old Nov 1, 10, 10:51 am   #2
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It works out to about .19 cents per mile. Is that a good deal?
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Old Nov 1, 10, 11:48 am   #3
 
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Originally Posted by vetforus View Post
It works out to about .19 cents per mile. Is that a good deal?
If it were .19 cents per mile, you could buy 80,000 miles for about $152. Would buy all I could at that rate. However, from my math it is 1.9 cents per mile. Not such a good deal unless you really need some miles to get an award.
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Old Nov 1, 10, 11:52 am   #4
 
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Actually, 1.9 cents per mile. Or, $0.019 per mile. Some people might find that to be a good deal, and others not. It really depends on what you plan to use them for. Buying international award tickets in F? Maybe a good price for the miles. Want some more 500 mile upgrades in your account? Terrible value. (upgrades can be bought 8 for 35,000 miles or 8 for $240, so $0.0069 /mile)

The value of a mile has been discussed in many many threads.
How do you decide if you should use miles or just pay for it?
Value of AAdvantage miles - How much is 1 mile worth to you? (consolidated)
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Old Nov 1, 10, 4:11 pm   #5
 
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If you purchase 60,000 miles the fees are $1500 + $112.50 (federal excise tax) + $30 (processing fee) = $1642.50

With the 20,000 bonus miles, it comes out to 2.05 cents/mile.

BTW, why do they charge federal excise tax on purchase of miles?
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Old Nov 1, 10, 4:30 pm   #6
 
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Originally Posted by Time traveller View Post
If you purchase 60,000 miles the fees are $1500 + $112.50 (federal excise tax) + $30 (processing fee) = $1642.50

With the 20,000 bonus miles, it comes out to 2.05 cents/mile.

BTW, why do they charge federal excise tax on purchase of miles?
is this tax only for US residents ? do Canadians need to pay?
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Old Nov 1, 10, 5:49 pm   #7
 
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Originally Posted by Bence_Coronation View Post
is this tax only for US residents ? do Canadians need to pay?
Not sure if the federal excise tax is for US only or for everyone. You can log in your aa.com account and attempt to buy the miles and it will tell you whether they will charge you the tax or not.
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Old Nov 1, 10, 6:41 pm   #8
 
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Quote:
Originally Posted by Time traveller View Post
If you purchase 60,000 miles the fees are $1500 + $112.50 (federal excise tax) + $30 (processing fee) = $1642.50

With the 20,000 bonus miles, it comes out to 2.05 cents/mile.

BTW, why do they charge federal excise tax on purchase of miles?
When you use credit card, you will get another 1642 miles. Therefore.

It's 1642.5/81642 = 2.01 CPM
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Old Nov 1, 10, 6:46 pm   #9
 
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Do these miles count for life status?
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Old Nov 1, 10, 6:58 pm   #10
 
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Originally Posted by allset2travel View Post
Do these miles count for life status?
So far, yes.
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Old Nov 1, 10, 7:18 pm   #11
 
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I guess this offer (33% bonus with max purchase of 60K miles) is slightly better than the Aug-Sept offer which gave a 30% bonus with a max of 40K purchased miles.
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Old Nov 1, 10, 7:32 pm   #12
 
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Originally Posted by Time traveller View Post
Not sure if the federal excise tax is for US only or for everyone. You can log in your aa.com account and attempt to buy the miles and it will tell you whether they will charge you the tax or not.
too bad, we are getting double dinged

Number of Miles: 60,000
Cost: $1500.00 USD
GST/HST: $76.50 USD
Federal Excise Tax: $112.50 USD
QST: $2.36 USD
Processing Charge: $30.00 USD
Total Cost: $1721.36 USD

Federal tax and Canadian tax
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Old Nov 1, 10, 7:36 pm   #13
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Quote:
Originally Posted by Bence_Coronation View Post
is this tax only for US residents ? do Canadians need to pay?

I just bought US miles, had to pay the American excise tax AND 13% HST!!!!!
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Old Nov 1, 10, 7:41 pm   #14
 
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Originally Posted by rankourabu View Post
I just bought US miles, had to pay the American excise tax AND 13% HST!!!!!
see my post above. Canadians are being ripped off again
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Old Nov 1, 10, 7:53 pm   #15
 
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As a European resident, I paid the 7.5 tax when I bought miles earlier this year. With the low US$ versus Euro I find buying miles good value if exchanged for Biz or F awards.
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