xliioper

One could argue the AS needed to differentiate itself because of it's lack of network compared to other legacy airlines. Now that need is largely gone with addition of AA network. There's a long history of partners harmonizing earnings to prevent situations where the disparate earnings cause flyers to jump ship to the more lucrative programs when not actually primarily flying that airline. Southwest doesn't have any partners, so it doesn't need to concern itself with such things. Note that AS could retain a "mileage-based" program, but only offer fractional mileage earn on cheaper fare classes. This is frequently the case in many partnerships where is may not be possible to credit based on dollars spent for partner flying.

milypan

Probably because in this industry you never get something for nothing, and that's an obvious thing to trade away.

I too was initially skeptical that AA was getting much of anything from this. But when you look at the numbers, it vaults AA from being an also-ran at every significant West Coast airport except LAX to being in the #1 or strong #2 position at all of them (when looking at combined AA + AS share). That seems significant, even for an airline as large as AA. And what is it really costing them? The number of routes on which they directly compete with AS is rounding error, especially as AS cuts back its TCON flights from LAX/SFO.

Or they could square it up mathematically with the MVP/MVPG differentials and set it at 93,750 miles.

xliioper

It's quite possible that you can't really assign 100% of blame/credit to one side or the other. Maybe it was a little too much of both AA demanding exclusivity and AS demanding independence. With AA's loss of LATAM and AS's dwindling list of partners, maybe both sides decided to make some concessions in order to get a deal done.

VegasGambler

Any chance this ends with AA buying AS in a few years?

Travelchurner

This is my concern as well

eponymous_coward

Quoted for truth.

There's zero indication that there will be upgrade reciprocity for AA/AS. So boom, your domestic upgrades on AA flights evaporate once you're an AS elite. That right there is a huge reason why most people will stay put.

There's a marginal case where:

- I pay for J/F on AA/BA/CX/JL/etc. and literally could not care less about ever being upgraded (or any EXP/CK services from AA, IRROPS)
- Oh, neato keen, now I can put all my AA J/F transcons or AA international J/F flight earnings in an AS bucket instead of just nasty ol' AA, and, uh... get what other than more miles, lounge access I was already going to get as a OWE in J/F?

Most of the benefits you get as an OW elite are... wait for it, things you don't need if you're in a J/ F cabin anyway.

But like you say, I don't know how many of these customers were choosing AA for status/mile acquisition to begin with.

But OK, what about the Y benefits? Well... I am betting that if you're in AA Basic Economy/AS Saver, you're not getting upgrades to better seats. So now an AS elite has an actual incentive to pick a non-BE fare (and for AA elites, the same). And it's a sucker bet that EQM/RDM earn rates on low-priced Y for AS elites on AA/AA elites on AS aren't going to be 100% EQM/RDM (or EQD on AA). So good luck trying to get EXP/75K on $99 AS/AA transcons. Earn OWE on AS $99 transcons as a 75k, and then if you want more than early boarding/checked bags when you fly AA... please pay to get out of Basic Economy. Ch-ching!

This isn't going to be THAT easy for the FT "I game the airlines" crowd to game.

dayone

My guess: As AS was investigating joining oneworld as a Connect member, at some point it made more sense to become a full member. More sense to both AS and AA, because nothing happens in oneworld without it making sense to AA.

ashill

QF doesn’t share a hub (or two, depending on how you count LAX for both DL and AS) with an AF/KLM joint business partner.

Eastbay1K

In our little FT bubble, (the collective) we seem to forget that most of the people, most of the time, will never see a lie flat seat, and are lucky when they see that rare seat with extra legroom and maybe, just maybe, are comped an adult drink. This even goes for those with lower status on airlines. Give them a pleasant enough experience and maybe a free bag if they've got a credit card, and the ability to reserve a seat and voila, you've got a content traveler in 2020. Give then a 110 outlet at their seats and you've got a very content traveler. Give the higher status (but not necessary big bucks) traveler a reasonable shot at a cushier seat (and a perhaps less reasonable shot at a mimosa before takeoff) along with kale, polenta, and clementines galore, and you've got a satisfied repeat and likely loyal customer.

ashill

That gets into whether the DOJ would allow one of the big three to merge with a competitor who is big enough to provide actual competition. I would hope not, but the DOJ is rather different than it was a few years ago.

RaginPlainsman

I have little interest in flying AA given its current quality, so it will be a matter of seeing what sort of OW member redemptions are available (including what happens to existing AS partners) and whether Mileage Plan takes a hit before I'm ready to cheer this move.

Mwenenzi

off topic
When I was looking for EU QF awards yesterday was offered some on AF/KLM via Asia. SIN was common
Some people of FT are far too focused on North America. It is all the (one) world, not just north America
Hubs (spokes & hub) are mainly a USA thing. Less prevalent in other parts of the world. Just home/major airports. Point to point flying is common

on topic

Tango

Each airline can control how many miles/points you earn on partner flights---I see no difference with someone flying AA crediting miles to AS. AS could easily keep their current redemption levels for AS FF members flying on AS flights award miles flown on American based on fare class or other factor. You will always get the most benefit flying the airline that your FF status is based on. I would assume this would carry on with the best chance of upgrades happening when you fly the airline of your FF program.

bbison

Historically, my household has wound up with piles of BA and AA miles. It's the eternal paradox that BA miles were best used on AA and vice versa. Anyway, I'd been checking AS for a mileage redemption to AMS in July for a while. It's been awful--EI or FI for extreme miles to sit up front. As expected.

Today, business class showed up on BA that exactly paralleled the AASaver redemptions--with good routings and connection times, not the slop or *** mixed cabins*** we often see. Offerings that weren't there on Tuesday. Yes, there's the high BA co-pays, but we paid those on AS to BA redemptions before AA got involved anyway.

I guess that's one positive out of this. waiting to see what's next though.

jimmygottfredson

Gary Leff (View From The Wing) spoke directly with AA on this subject, I found the post interesting and also brings a little more clarity to what is really a move out of left field:

https://viewfromthewing.com/alaska-i...ce-in-october/