kuaa

In DFW AC today and the check in clerk said that Amex has a 3 year contract with AA for lounge access, which is due to expire in October. It could renew, or it might not.

Sad if it doesn't because the new Priority Pass bene doesn't get us in the AC.

I don't remember seeing discussion or news of this so this was a big surprise to me today. Sorry for any dupes.

dw

I wouldn't read too much into info given out by someone at an AC. After the loss of CO, I'm sure AMEX will do everything they can to renew the contract with AA, if it is in fact up this year. Plus, Chase has been far more aggressive in their marketing (i.e. poaching Amex cardholders) as of late than Citi, which is presumably why AMEX lost CO and why there was the creation of the Select level of Priority Pass. Citi has no competing premium card for AA.

aa4ever

Actually, Amex Plat got access in August 2007, so nearly 4 years ago. So the source in the AC was wrong on at least that, and perhaps more too.

lobo411

I'm an AC member and planning to cancel my Plat card soon, so I hope they do eliminate access for Plat holders. The Plat access benefit makes an AC membership virtually worthless, so it's hard to see what the upside is for AA. I suppose AA was hoping to "make it up on volume," but that's rarely a winning strategy!

I'd rather spend my dollars helping AA than AMEX.

TAHKUCT

Here is the membership benefits of AC:
"Membership Privileges

* Access to over 40 Admirals Club locations worldwide and over 30 international lounges operated by oneworld partner, Qantas. (Must be traveling on Qantas operated flight for access to Qantas lounges)
* Up to two guests (spouse, domestic partner and/or children under 18 years of age) may accompany the member.
* Assistance with reservations, seat selection, upgrade standby list requests and same-day ticketing.
* Computers with complimentary high-speed Internet access.
* Complimentary Wi-Fi in all lounge locations in the U.S. and Puerto Rico designated as T-Mobile® HotSpot
* Complimentary Wi-Fi in all lounge locations in Europe, Asia, and Latin America.
* Work areas and access to copiers and fax services.
* Exclusive Special Offers from fine companies: Bose, Carey, HP, Park Hyatt Chicago®, and The Ritz-Carlton®, Laguna Niguel.
* Showers and children's rooms in select locations.
* U.S. lounge locations offer complimentary coffee, tea, soft drinks and snacks.
* Complimentary well drinks, house wines and beer in all domestic U.S. lounge locations.
* Amora™ sweet and savory snacks as well as specialty sandwiches, salads and small bite samplers available for purchase in all domestic U.S. locations.
* International lounge locations offer complimentary snacks and beverages.
* Conference rooms available at discounted member rates with a variety of business amenities and catering available. "

And you are saying because of Amex all of these are worthless? Amex only grants access to AC when flying AA. With AC membership, you have access to AC anytime including lounges of other Oneworld partner, Qantas. Plus you also get free WiFI in AC lounges, however Amex Platinum carmembers do not have such a privilege at US AC

The upside for AA is more revenue generation plus more loyal customers. IMHO

aa4ever

Or, depending on how much they make per entry, AA could be making way more than they would on Admiral's Club memberships. It all depends on whether a) people would have bought an AC membership anyway and b) if they would have, is their use heavy enough that the per-usage fee is more lucrative than is a flat fee.

My personal hunch is that this is a good deal for AA. Most people using the card probably wouldn't be members anyway (so they get a bit of extra cash for each usage). Marginal cost for AA of providing access to the lounge is basically 0 (maybe a soft drink or glass of cheap wine/beer).

scubadu

Ok, this seems like a grossly misleading thread title. Currently, there is not a shred of evidence this will occur. Companies go through contract negotiations all the time. That in and of itself doesn't inherently imply those negotiations will fail or a deal won't be reached.

Could this happen at some point? Sure. And we could start a thread everyday about any number of AMEX Plt benefits that could fail to be renewed if contract negotiations fell through.

This seems way, way premature...

Regards

lobo411

One guy pays AA $450 for a year of access, which he may or may not actually use. The other guy pays AMEX $450 and gets a year of access, and AA only gets a tiny fraction of that amount if and when the guy uses it.

Both customers receive the same treatment (except for free wifi).

The AC member is getting ripped off, and so is AA.

TAHKUCT

The AC member has a choice either keep AC membership with above mentioned priveleges or get an Amex Platinum and still get AC access when flying AA, but loose free Wifi. However, being an Amex Platinum cardmember, he/she will gain more other travel and not-travel related benefits for the same fee paid www.americanexpress.com/platinum

lwildernorva

While I might understand how an AA member would feel he was getting ripped off, it's hard to buy that AA is. Although maybe not the best run company in the world, AA's got plenty of experienced folks who could look around and see whether the association with Amex was worthwhile or not. And as this contract expires, I'm sure they will do an analysis to determine whether this association remains worthwhile. I'd note that US, with the experience of other airlines in view, agreed to allow Platinum Card holders access to their lounges even if they aren't holding a ticket on US that day.

If I were a US Airways Club member, I'd really feel I was being ripped off for paying for exclusive access when others who weren't members and weren't paying anything to US got the same access.

I just wouldn't feel it was Amex that was ripping me off.

lobo411

The term "ripped off" can mean "cheated" or it can mean "a poor bargain." IE--"$3 for a coke? That's a ripoff!"

The AC member is getting "ripped off" because he's paying a lot more than the Plat holder is per occasion that he consumes the service.

AA is (probably) getting "ripped off" because the Plat card (probably) cannibalizes AC membership sales.

We'll see what happens, but with CO leaving, if AA leaves then it's the death of this benefit imo.

xplrider

Seems to me the AA member is having sour grapes over making a less than optimum decision.

jlbdca

I see how some can think AA is getting "ripped off," but by AA's offering lounge access to Plats, Plats are more inclined to fly AA, no?

Vacation time

Hows AA getting ripped... Yes they might get a fraction of 450 but Amex plat. members would then buy AA plane tickets. They lose in one hand gain in another..

aa4ever

That also assumes the person would have bought an AC membership. I certainly wouldn't have b/c of the limited use (i.e. only the AA Clubs, not even significant partner clubs) and I'm sure there are many others like me. So they may not even lose much (or anything) on the AC revenue side. Also, definitely pushed me to fly AA more; this benefit goes away and I'm off completely to DL.