Quick update from Gary's blog..
http://viewfromthewing.boardingarea....upgrades-work/
The recent PALL change that was implemented ONLY applies to revenue complimentary upgrades - as in those waitlisted for R space.
Companions will NOT inherit status on SWUs or Award tickets at this point.
This also requires that the companion be on the same PNR as the elite member sponsoring the complimentary upgrade.