Originally Posted by dkerr
So, is 50,000 ( - earned 15, 724 for a platinum) miles worth $330 ?
Or, is 90,000 (+ lost earned 17,690 for a platinum) miles worth $1630 ?
DAK
50K - 16K earned = 34K miles. If you value miles at .01, cost of miles used for upgrade is $340, close to the $330 cost to upgrade tix to I-class. Even less value for those of us who are not Plats. Essentially AA has devalued our miles to <.01 if we want to use them for international upgrades.
90K + 18K = 108K miles vs. $1630, which works out to .015 cpm. The 90K free ticket is clearly a better value than the 50K upgrade w/co-pay, plus the convenience of being able to change/cancel award tix (even with fees). The major downside is the loss of 7K-12K EQM, depending on your departure city.
I bet that AA will lose money on this deal as more people start using 90K awards or simple fly coach. Not to mention the reduced revenue from selling cheaper I tickets.
I'm really curious about what management plans to do with all those empty seats in C. Fill with employees? Op-ups? Or sell upgrades at the gate like UA does?
