Originally Posted by
scillyisles
I have highlighted the incorrect part for ease of reference.
But what you highlighted is the correct part. The 'chart' you're referring to was/is created by BAEC based on the information it gets from other carriers re how much it wants to pay BAEC for the Avios to entice BAEC members to fly with them. If BAEC tells AA that 1 cent will buy 2 Avios, and AA gives BAEC US$2 for a particular passenger then BAEC will issue 400 Avios to the member.
Originally Posted by
NickB
I do not think that this is correct. My understanding accords with that of orbitmic, viz. CX will make a notional "cash" payment to the airline whose FFP you belong to (say BA) but that airline will decide itself now many miles/points it wants to give. Clearly, if the amount paid by CX is low, it will re reflected in a correspondingly low number of miles as the other airline will not want to be out of pocket but that decision is that of the other airline.
How is the decision of the other airline if the amount of issued miles/Avios represent the value of the notional payment that the passenger's programme received? If AA says 'I will give you X for every BAEC member that flies with me on flight Y in booking class Z', and then BAEC says 'OK, I will award X Avios for the US$ X that you give'. The particular number of Avios is set by BAEC but it is determined by the payment from the other airline, so in effect it is set by the latter. CX pays AA nothing when AAdvantage members fly with it in the cheapest buckets. There are no standard payments. CX simply refuses to pay anything to AA as it does not need to attract AA flyers (unlike BA, whose flyers CX wants to attract). CX decided that it did not want to issue (not to be read literally) any AA miles to attract those passengers. Or are you saying that CX does pay AA when its members fly the cheapest buckets but AA decides not issue any miles regardless and pockets the cash?
I am surprised that we're even discussing this when this topic has been covered so many times on this forum. And it was confirmed from several sources that the marketing carrier sets the value of the reward the member gets and pays that value to the passenger's home programme. I am even more surprised as the specific issue of AA domestic F flights (why they're credited as F and why awards in F are charged as F rather than J) was addressed several times by BAEC representatives here in connection with BAEC changes. And it was confirmed that it is of AA making; that it is AA that gets to decide what gets credited/charged. So, whatever the new accrual/redemption chart is it won't be decided by BAEC... (yes, BAEC will convert whatever it gets from AA into Avios, but AA will decide what it wants to give BAEC when its members flies on a specific booking class). AA does not set the 'exchange rate' of the notional payment into Avios but the number of Avios directly corresponds to the value of the payment.