FlyerTalk Forums - View Single Post - BA miles redemption tax versus AA

Dec 23, 2009 | 8:59 pm

#54

moondog

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Join Date: Dec 2000

Location: Shanghai

Posts: 46,418

Quote:

Originally Posted by beachfan

So I'd pay $205 x 2 (for RT) x 2 (for two people) or $820 for a J ticket (vs. AA with no surcharge) worth 120k miles. Around .7 cents a mile.

.....

I think if you talk about the opportunity cost re 2% cashback on the $30k spend ($600), you'd have to compare it to the cash price of the ticket. I think I know how that would come out.

You should add the $600 to your $805 figure, which puts you just shy of 1.2 cpm.

For the Maldives, I'd be inclined spend an extra 20k miles (2*100k) and get as close as possible on CX or JL. By going this route, I'd be up $600 plus the difference in YQ (between BA and CX/JL), which I'm going to assume is around $200 per ticket. With any luck, I'd be able to make it the rest of the way for $300 pp, which puts me $400 ahead, effectively valuing the additional 20k spent at 2 cpm.

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