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Old Oct 2, 2003 | 5:16 am
  #5  
martin33
 
Join Date: Apr 2001
Location: PIT/DFW/MEL; AA Exec. Platinum & 4MM, QF WP
Posts: 7,689
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ananthar:
Keep in mind that most airlines carry mileage liability on their books at a rate of around $0.001/mile (NOT $0.01), so the cost for the extra miles for EXP are really :

100,000 extra miles (over base) : $100
8 VIPOW's at 25,000 miles/VIPOW : $200
AC discount : $200 (probably doesn't cost them $200)

Apart from the EXP desk I don't think the cost to AA is more than $500/year.

</font>
exactly.

[and the much discussed 30% LCC premium is not calculated as a % of fare paid-- see various old threads on the subject.]
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