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Old Apr 15, 2004 | 7:00 am
  #18  
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Upgrading with miles, or even selling upgrade certificates for miles, is a very bad idea.

First, the elite program has already been decimated. Benefits have continued to be eroded and aside from lounge access and so-called priorities for res, check-in, standby [on limited fares], boarding, etc. the only real benefit is receiving various types of upgrade certificates, and opportunities. What would be left of elite status other than these priorities?

Second, front cabin inventory continues to shrink as the NAmerican system is reconfigured. Exec Class fares have been dropped considerably to encourage purchase of this product. SWUs have been limited to reduce the number of elites competing for limited C capacity space. AC is trying to improve its Exec service and build in enough value that it becomes a purchase proposition. By permitting use of miles to get into that cabin, it further erodes the perception of value. [Yes, I know all about the overbooking and op upgrading that occurs on some routes, but this is just a fact of life.]

Third, permitting mileage upgrades opens the floodgate to every Aeroplan member competing for the limited upgrade inventory. Complaints already exists about purchased C eating into upgrade C inventory. Complaints are rampant about not enough D award capacity on the most desireable routes. Add mileage upgrades -- or the ability to buy SWUs with miles -- and the situation gets even worse for those of us who have earned the opportunity to upgrade as a benefit of being elites.

We continue to read complaints about how Aeroplan is moving to be a program for mileage accumulators who never step onto an airplane. Well, those who complain about this the most apparently don't see the connection between this phenomenon and being able to purchase mileage upgrades. There is a very major one which will open the floodgates.

AC needs to keep a balance between selling J and C space, and providing a reasonable upgrade and award capacity. It is the only airline in NAmerica that makes money on its front cabin [in relative terms] since the US carriers long ago ceased to generate much marginal profit from selling domestic F, and so decided to give it away as a promotional/marketing play in the FF elite wars. AC cannot afford to do this, particularly because there always has been and will continue to be a viable market for paid J/C on major domestic and transborder trunk routes.

Yes, I know many carriers do offer mileage upgrades, and sure it is great to be able to get one on longhaul flights. But this upgrade space comes from award inventory. Once that inventory is assigned, the space is no longer available, though some do provide "at gate" mileage deductions for elites, to top up the front cabin. Still, I wonder how people here would feel when they next tried to book a D award and found all the inventory was gone because people had used their miles to upgrade?

Elitism is just that in this case. And to preserve the benefits, as few as they have become, I for one cannot back mileage upgrades, no even purchase of addtional SWUs with miles for elites.
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