Originally Posted by
Mountain Trader
I agree that it depends
My calculation focuses on costs and benfits. $100,000 in Bank Direct earns hardly any interest but does earn 10,000 AA miles per month or 120,000 per year, tax free. No fees, money available daily. At 1 cent per mile, that matches HSBC (ignoring taxes), and as mileage value assigned increases, so does the spead.
However, the HSBC yield is cash and in my view, awarded miles should be discounted for time value of money and for risk of future program devaluation.
Yes! AAdvantage miles just have had a stealthy devaluation via the BA fuel surcharge that was not there before now it is on every BA flights on your award itinerary. A poster just said his YYZ-DXB F award used to be $132 tax in the past and now it costed him $810, thanks to the BA fuel surcharge now AA collects on the BA metal. (and per some FTers such fee does not pass thru to BA - it is the carriers who collect it get to keep it.) By giving the ability to fly BA TATL on award and earn miles on revenue tickets, AA effectively and skillfully devalues the miles because now the previously allowed BA flights are all subject to fuel surcharge, with those to India or Africa being affected the most - translates to very hefty out of pocket money. The flat $25 per segment intra-Europe BA flight YQ essentially making a once very good value OneWorld award from East Coast to Europe far less valuable due to big out of pocket money. One might as well use LCCs and not be bound by all the rules and award availability!