Originally Posted by
Shareholder
Question to all the complainers out there... If it costs US -- or any other carrier -- 1¢ per mile the 500 minimum represents $5 out of its pocket. If most of this mileage is earned flying on fares that are in the $50-$100 range, does it make economic sense for US to be taking a 5%-10% hit on revenue just for FF miles? This is another cost that needs to be gotten control of, and this move is a very sensible one. COS bonus will raise the earnings for those paying F fares, and perhaps US will ultimately move in the direction of many other carriers who have a variable mileage return based on fare, where higher fares get full mileage, lower ones a discounted level.
Time to wake up and smell the coffee...
I'm gonna LOVE booting you out of your upgrade!!! Sound like a jealous Silver to me. Here is something to consider Mr genius Shareholder.
Case in point. I've been doing a lot of PHL-DCA lately which if memory serves is 121 miles. Now with an average ticket cost of around $400.00 that's a pretty nice chunk of change for a 242 mile R/T on an RJ even if the CASM is around 25 cents per mile. So I do the trip instead of driving partly because it's easier and it helps to keep my status. You've probably changed the equation enough that I'll drive. The company reimburses me at 50.5 cents per mile. I "make" about $125.00 on the mileage and save the company a rental car charge plus the airfare. The money I clear on the mileage is enough for me to do a mileage run to San Jose, CA for a little over $200.00 and pick up 5,350 miles. You lose the good revenue PHL-DCA and trade it for crappy revenue.
Now EXACTLY how does this benefit US Airways??? Your condescending arrogance towards us makes me wonder just how high up in the Tempe Kool-aide Drinkers club you really are. I haven't bought a $150.00 ticket for YEARS dude. Neverminding that US accrues FF'er miles as a liability at about 3 tenths of a cent per mile. The issue is being able to SELL more seats.