FlyerTalk Forums - View Single Post - From AA Press Release: Vasu Raja to leave American Airlines in June 2024
Old May 29, 2024 | 9:08 am
  #37  
norcalfiend
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Join Date: Sep 2023
Programs: Hyatt Globalist; AA EP; Hilton Gold
Posts: 133
Originally Posted by USFlyerUS
How is credit card spend rewarded "significantly"? I earn 11 miles per $ on flights and 1 mile per $ on credit card spend. The program is still heavily weighted towards actual flying.

Regardless, AA makes a lot of $ on credit cards, so, whether one likes it or not, credit card spend contributes to AA's top and bottom lines.
Agreed the change in elite qualification with Loyalty Points was one of the few moves that American made that was actually visionary and has Delta and United partially follow - very unlikely that changes. The only obvious and certain change will be rebuilding the business-sales division given the announcement earlier today which will take some time.

In terms of network strategy too early to tell if there is a shift from the small city (El Paso) and Sunbelt focus. I would say in your example for international strategy, JFK->DEL is likely a more profitable and desirable route than DFW->HKG - it says something when neither Delta or American has any plans to add service to HKG with United only serving it from LA and SF - it's probably a combination of HK on the decline and India's economic growth which is why on the flip side even Delta is announcing plans to add service to India once their Airbus orders come in (and AA initially did from SEA as well). Perhaps AA competes again on the Coasts where they've pulled back at LAX (esp. once gates come back), BOS (focus city they've ignored), and NYC - maybe they look at Seattle again or maybe it's the same old.

Too early to tell but the issue w/ American's pullbacks from competitive markets (ORD, LAX, NYC) is any expansion will come with a competitive response from the Big 3 which likely will entail losing $$ at least in the short-term. Given the balance sheet they'll have to pick and choose those opportunities.

Last edited by norcalfiend; May 29, 2024 at 9:28 am
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