FlyerTalk Forums - View Single Post - Speculation: Is AA preparing for carry-on fees?
Old Sep 3, 2012 | 4:46 pm
  #41  
elitetraveler
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Join Date: Dec 2005
Posts: 9,916
More fees = More reason to devalue AA when it comes to cheap elites.

Think about it - according to Mileage Runners you can get EXP for $5,000

It seems many EXPs use AA miles to redeem on QF, CX and other partner carriers. Assuming a 100,000 mileage redemption costs AA $1,500? (1.5 cent per mile) payment AA to CX, the EXP now had a value of only $3,500 to AA.

Since EXPs get all fees waived and free snacks, etc. now AA with rather full loads has to start thinking about lost fee revenue. In other words selling that low price ticket to an EXP yields 0 fees, whereas for the 'kettle' AA gets to fee them left and right perhaps picking up an extra $50 per one-way (or more).

Based on 30 one-ways (15 roundtrips), that is $1,500 in potentially lost fees for AA.

In other words flying non-status passengers in that same seat would yield AA $5,000 in fares and $1,500 in fees. Also since the mileage would be divided by multiple pax there would be no 100,000 CX redemption.

Just saying...
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