FlyerTalk Forums - View Single Post - REACTION, DISCUSSION: EQD, status tier, upgrade changes as of 6 Jun 2016
Old Jun 9, 2016, 9:54 am
  #789  
Superguy
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Join Date: Jan 2005
Location: BWI
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Originally Posted by sayonara
It's difficult to ascertain whether the airlines' hidden agenda is to dump loyalty programs or they have lost perspective of what the programs were originally set to accomplish. I find it difficult to believe that the IRS and corporate compensation committees are going to let the status quo continue - rewarding the wealthy with a tax free benefit that has suddenly become over the top enriching. For example, an executive at EP level who pays $5,000 for a RT Business class ticket will receive 55,000 miles for the trip. Three RTs will equal Business Class to Europe Level 1 Anytime and two RT will earn Business Class Mile Saver. If the executive delays purchasing the ticket, the trip could easily earn 90,000 miles which would equal Business Class Level 2 Anytime after only 2 RTs. My prediction - the ultimate payers will aggressively seek to claim the value generated my these overly rich programs. "Small business" flyers who are passing on the cost will also be impacted. And when that doesn't happen the IRS will change the tax code now that the programs are skewed to shaft the less fortunate. This leaves the airlines vulnerable to class warfare based on all the things done to economy fliers: bag fees, crammed seating and back of the plane seating.

I believe that we all should be more respectful of those riding in coach. (the back of the plane arrives the same time as the front) The new program shows a whole lot of disrespect. Thoughts?
A couple things you're forgetting:

Tickets earn 75k RDM tops, even if more could have been earned without the cap. Buy a $10k ticket as an EXP? Tough - you still get 75k miles unless you do it as 2 one ways, which may or may not be cost prohibitive.

You're also going on the assumption that premium award tickets are easy to come by on AA. They're not. One can earn a crap ton of miles, but without planning and flexibility, and a bit of luck, actually burning them for premium awards (especially on TATL flights with no YQ) is difficult. Even harder if you want to take someone with you.
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