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Delta introduces new revenue program for earn, one-way awards

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Old Feb 26, 2014, 5:15 am
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Universal link to SkyMiles 2015 changes

2015 SkyMiles Program

PDF Version

Everything begins January 1, 2015 on Delta marketed flights with DL code and 006 tickets.

Medallion Qualification - Same as 2014.

MQM or MQS stays at the qualification criteria for all members except US based where MQD is added.
Rollover MQMs to stay.
Current benefits to stay...? Remains unclear until the benefits are published for the following year.
Miles don't expire

Earn Award Miles - Drastically changed.

Non Medallion - 5 Miles/$1
Silver - 7 Miles/$1
Gold - 8 Miles/$1
Platinum - 9 Miles/$1
Diamond - 11 Miles/$1

Credit Card miles earning remains unchanged. Depending on the card you hold you may earn up to 2 miles/$1. Until the new award rates are out it remains as mystery on whether using a Delta credit card is better or worse.

Partner flights will earn on a percentage of distance flown and fare class paid...? Remains unclear until more information is out.

All fares paid by other currency will be converted to USD based on IATA 5-day currency exchange rate at the time of ticketing. Then apply the same rate listed above.

Existing miles to stay with no changes.

Miles + Cash are AWARD tickets. Medallions can get free upgrades.

Redeem Miles - New 2015 Award Chart

No blackout dates on Delta flights...? No blackout dates on DL-operated flights as per the FAQ.
More award seat availability...?
Five award levels
Miles + Cash offer available
One-way awards at half of round trip rate
New award calendar
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Delta introduces new revenue program for earn, one-way awards

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Old Feb 25, 2014, 11:54 pm
  #76  
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Originally Posted by TheBOSman
Thought I saw that line. Thanks . Frequency of travel is the key word there, so it looks like 125,000 MQM and the PQD requirements will stay.

In theory, someone could still MR for DL status and waive the PQD with a high enough Amex spend, but won't earn anywhere near the current number of RDMs in doing so.
I think this is the end of the extreme mileage runner. Take someone who would barely qualify for Silver but wants to requalify for Platinum. Need 50k MQMs to bridge the gap. Assume a $250 fare for a 5,000 mile RT - 5.0 cents per MQM, not great, not terrible, a rate that is fairly easy to get if you look for it.

10 round trips at a $250 fare, about $195 of which is going to be the base fare, would yield 2,255 RDMs each if paid using a DL AmEx = 22,550 RDMs. Under the old distance-based system, 10 round trips with a 100% Platinum bonus would yield 100,000 RDMs for the flights themselves, plus another 4,800 RDMs from the AmEx spend.

So the 5cpeqm mileage runner gets 78% less under the new system.

This isn't going to stop someone who needs a few thousand MQMs from a cheap mileage run if they don't care about the RDMs, but for many of the extreme mileage runners, the RDMs play too much of a factor.
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Old Feb 25, 2014, 11:55 pm
  #77  
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Originally Posted by wp_kid
I wonder if there's a way for AA, UA, or AS to take advantage of DL's move? I.e. can any of these airlines take in the customers DL fires without following their FF move, and still make a healthy profit that investors would be happy about?

I guess a "flat" $2.7B profit for Delta's 2014 just won't cut it this year...
It depends how exactly the redemption side of it turns out with this five-tier system. My earlier math tells me that there's a decent chunk of profitable customers (if not quite ultra-profitable) who will earn fewer miles under the new scheme than the old one. If redemption value doesn't increase, and their earnings decrease, then they can definitely gain by going to AA or UA as the math of switching changes in AA/UA's favor.
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Old Feb 25, 2014, 11:55 pm
  #78  
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Originally Posted by Berto
Why did I have to check FT right before going to bed?
Well you're sure going to have nightmares now...
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Old Feb 25, 2014, 11:56 pm
  #79  
 
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just interesting changes.... surprised there's so little outrage
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Old Feb 25, 2014, 11:57 pm
  #80  
 
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Originally Posted by javabytes
Haha... yes, I'm sure DL will improve availability at low levels.
Sure it will. But "saver" and "super saver" will be virtually non-existent. And "low" level pricing for USA-Europe will be 250k r/t in J.
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Old Feb 25, 2014, 11:58 pm
  #81  
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Originally Posted by javabytes
I think this is the end of the extreme mileage runner.
Not good for my FT future that is for sure. I quite resemble that remark .

Originally Posted by javabytes
Take someone who would barely qualify for Silver but wants to requalify for Platinum. Need 50k MQMs to bridge the gap. Assume a $250 fare for a 5,000 mile RT - 5.0 cents per MQM, not great, not terrible, a rate that is fairly easy to get if you look for it.

10 round trips at a $250 fare, about $195 of which is going to be the base fare, would yield 2,255 RDMs each if paid using a DL AmEx = 22,550 RDMs. Under the old distance-based system, 10 round trips with a 100% Platinum bonus would yield 100,000 RDMs for the flights themselves, plus another 4,800 RDMs from the AmEx spend.

So the 5cpeqm mileage runner gets 78% less under the new system.

This isn't going to stop someone who needs a few thousand MQMs from a cheap mileage run if they don't care about the RDMs, but for many of the extreme mileage runners, the RDMs play too much of a factor.
Yeah, I can't say I'd MR purely from zero for status if I wasn't earning at least a reasonable number of RDMs for my money. Better off just buying biz/first those times I really want to go somewhere. Paid biz/first fares have come down a bit recently (while products in those classes have improved in many cases and weakened in few cases), so it isn't as outlandish an idea as it was a few years ago.
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Old Feb 25, 2014, 11:59 pm
  #82  
 
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Meh, this does not sound good.

Based on my MQD/MQM ratios (due to longer trips & purchasing -UP fares), my earn rate will decrease significantly. It also sounds as if our redemption rates will skyrocket.

I honestly don't know if I'll stay with DL after all these years if the program specs are as bad as they sound.

I was fine with MQDs. It takes x-dollars to be an elite at each level. After the extreme devaluation at every level of Medallion status, I don't think I can accept a second shot to the program in terms of awards & redemption.

I might even be most disappointed about the death of the mileage run.
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Old Feb 26, 2014, 12:00 am
  #83  
 
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Originally Posted by flyersky1
I wonder if and how any DL apologists can defend this move
They'll say (I formerly would have said) it makes sense for them to do as a business, rewarding PM and DM fliers by giving them bigger bonuses at the cost of less for lower elites and kettles...

As for myself, THIS particular Delta apologist is debating his course of action for the rest of the year - qualify for status again for 2015 and then unload, or jump to another airline now? I could challenge with AA and be plat within a month, but is AA safe right now? Perhaps maybe just go with B6 and say goodbye to flying RU
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Old Feb 26, 2014, 12:00 am
  #84  
 
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Originally Posted by javabytes
Well you're sure going to have nightmares now...
I keep hoping that this is a bad dream and that I'll wake up any moment now...someone pinch me!
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Old Feb 26, 2014, 12:00 am
  #85  
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Originally Posted by flyersky1
I wonder if and how any DL apologists can defend this move
Don't you worry. I'm sure if any of them have seen this news they immediately wet themselves out of excitement. They are probably in a Delta-Fan-Boy coma right now. Remember, by their logic any of us who use the benefits of the DL frequent flyer program are gamers.
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Old Feb 26, 2014, 12:01 am
  #86  
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Originally Posted by flyersky1
I wonder if and how any DL apologists can defend this move
I'm sure bubba will be along to sing the refrain:

"Keep undeserving trash out of elite ranks"

"Get rid of the mileage running posers."

"Letting people know they are trash, human refuse, gluttons, cheats, whiners, gamers and thieves is a tough job, but somebody's got to do it."

(Actual quotes)
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Old Feb 26, 2014, 12:02 am
  #87  
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Originally Posted by javabytes
I'm sure bubba will be along to sing the refrain:

"Keep undeserving trash out of elite ranks"

"Get rid of the mileage running posers."

"Letting people know they are trash, human refuse, gluttons, cheats, whiners, gamers and thieves is a tough job, but somebody's got to do it."

(Actual quotes)
^ I really wish someone would call into his radio program and run off those quotes.
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Old Feb 26, 2014, 12:04 am
  #88  
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Originally Posted by Vuelos
just interesting changes.... surprised there's so little outrage
Outrage? I'm not even surprised. I'm just done.

I fortunately saw the signs early enough not to trust RA and Slippery Jeff, or any of the remaining entities in this oligopolistic market. I've got small mileage balances all over the place, but nothing near what I once did, so I won't get burned badly.

Last edited by javabytes; Feb 26, 2014 at 12:10 am
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Old Feb 26, 2014, 12:04 am
  #89  
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Originally Posted by Berto
Why did I have to check FT right before going to bed?
Same here! My stupid alarm is set for 7:15 CST and it is already passed 1 am! I was expecting a nice relaxing read after finishing a paper, but NO. At least I will be able to dream about the fun places I will go this summer with my delta miles!!
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Old Feb 26, 2014, 12:05 am
  #90  
 
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Originally Posted by javabytes
Quote:





Originally Posted by Vuelos


just interesting changes.... surprised there's so little outrage




I'm not even surprised.

Problem is there's nowhere to go. The lemmings will follow each other over the cliff... that's the problem with an oligopoly.
I think you will see the reactions soon...
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