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Old Dec 20, 2006, 7:35 am
  #39  
SleepOverGreenland
 
Join Date: Dec 2005
Location: FRA
Programs: LH, Avis, Hyatt, ...
Posts: 4,213
Originally Posted by SMK77
As there is no economic sense whatsoever to pay for a ticket in F, I guess that what attracts people most is quite simple: (...)
I disagree with you here and agree with triple3.

Calculation can be easy:

1) Assume 12 flights p.a.
2) Assume 12x8500€=102000€ in F versus 12x5800€=69600€ in C, Difference is 32400€ on a basic point of view.

3a) Received M&M miles in C is 405600 (incl. LH CC VISA payment)
3b) Received M&M miles in F is 572400 (incl. LH CC VISA payment)
3c) Value of 166800 additional M&M miles (aka 1.2 free F flights)
3d) Value of 134400 additional status miles. This may help to keep HON status and so gives 8 additional eVoucher all 2 years, 6[reniew]+4[birthday, twice]-2[SEN reniew].

4a) Received PPB miles in C is 98400
4b) Received PPB miles in F is 223200
4c) Value of additional 124800 PPB miles (=1.2 more free flights in F, or ~5 F upgrades).

The advantages from 3) and 4) are difficult to transfer into monetary numbers. But just 2 free flights in F would be 17000 € and 4 upgrades would be another ~6000€. Admittedly, this is a very rough calculation. But reducing the original difference of 32400€ by 17000€ and 6000€ ends up with 9400€ only. Wich is company profit BTW, so can be reduced roughly by 55% tax to get the real net difference: 4230€

So this is just 176€ more per F segment flown. I think this is worth it.

I know, this is a one-sided calculation. But it should show at least, that fares are not the only point of view. There is even more behind under the constraint of tax laws in Germany and the possibility to use earned M&M miles for private travels. Which is additional net benefit of the job. F fares on business trips however are always costs and reduce company profit (i.e. taxes to pay).
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