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Old Jul 18, 2011 | 9:07 am
  #9  
JAXBA
 
Join Date: Mar 2009
Location: JAX
Programs: Ex-BA/AA/CP/LY staff, BA Blue, IHG Diamond, Marriott Silver, Chick-fil-A Red
Posts: 3,755
Originally Posted by Earthman
It's not true to say that BA give seats away by allocating them for redemptions.
Anyone with BA miles, even tesco whores have paid for their miles and BA is the major winner.

Fair enough,they get more for straight sales...
Do bear in mind that BA is paid 2-3¢ or 1-2p per mile, when they're collected from an outside source such as a credit card or from Tesco, maybe even less. Assuming the 3¢/2p rate (which is what you pay for them when buying BA miles, before the processing fee), a one-way F redemption trans-Atlantic at 75,000 miles, is only $2,250 or £1,500 for that seat (plus the fuel surcharge). If they can hold out and get $6,000 to $10,000 instead, they will - they may not be literally giving away the mileage seat, but they could be giving up revenue they might still be able (and hoping) to collect.
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