jiburi

And this is the problem. With fewer flights operating in addition to the social distance commitment, there are 98% Less F seats flying.(98% is my guess )

AS resolution is possibly providing a $500 travel bank (With some restrictions) to purchasing qualifying F fares. This way, there is minimal need to look for space availability and only be driven by demand driven fares.

I think this is a good solution.

Jiburi

VFR

In March, AS said they were cutting flying by 70%, and that demand was down 80%. I believe they have added some flights since then. However, I would bet that given the lack of business travel: (a) demand skews toward Y seats, since leisure travelers are more budget-sensitive, and (b) a higher proportion of travelers are non-status.

Airlines (and FlyerTalkers) don't seem to always understand that most customers are confused by the concept of "fare classes" and "availability". "We are giving you $500 to spend on upgrades with us" is a lot easier to explain to people.

This does seem ripe for cuts though, if a 75K gets 50,000 miles and $500 of upgrade credit.

Flying for Fun

This may be true but pax don't really need to be concerned with fare classes. The fares for GGU application are readily available online and it isn't always the lowest fare class eligible to use them. As fare buckets fill up, at some point it will be an eligible fare for an immediate upgrade based on your Elite Status and a GGU would no longer be required.

One of the most valuable benefits of a GGU is the ability to upgrade all connections on the itinerary with a single upgrade instrument. How would you propose an upgrade bank handle that? How about companions on the same PNR? How about companion certificates? What if you are short in your bank to "purchase" an upgrade?

It may seem simple on the surface but implementation of a travel bank may not be so simple. Is that an "enhancement" you would support?

Why? There are no additional thresholds to encourage maintaining AS loyalty beyond 75K/90K EQM. AA provides benfits at 3 EQM thresholds beyond Executive Platinum qualification. Those choices include 2 additional SWUs, 40,000 AAdvantage miles or gifting status.

For the 75K Elite, 50K miles is conservatively valued at $750 (1.5 cpm), 4 Loung passes at $200 and the 4 GGUs from $0 - ????. The actual cost to AS is significantly less. I see that the value of a successful application of a GGU as the difference between the lowest eligible GGU fare on any given flight and the H class fare on that flight which would be an eligible fare for immediate upgrade for a 75K. Repeat for each connecting flight(s) and sum.

Of course this analysis assumes the availability of U space. A GGU has no value if there is no U space. Pre COVID-19, it wasn't difficult to find U space, the absence now (perhaps a pause) is, in my opinion, a combination of trying to minimize losses (not increase gains) and the integration of new IT for an accelerated entry into oneworld. AS knows how many outstanding GGUs are out there and may look at extending them.

As noted before, I think AS could add some value to GGUs and generate extra income by allowing for F EQM accural on an applied GGU. Whether or not you get upgraded, you know you would be earning 75% more EQM/RDM. If the fare difference between the lowest fare available and the GGU eligible fare is less than 75% more, I would be inclined to purchase the GGU fare when U space isn't available. That is something I would never consider now. I always buy the cheapest Main cabin fare and let the upgrades fall where they may.

I also think that MVPs should get two GGUs, 2 more for MVPG, and 4 more for MVPG75K. If you routinely attain MVPG or MVPG75K you would still get the same number of GGUs but receive 2 earlier in the status earning year. That would also keep MVPs engaged and more might strive to attain MVPG.

Losing GGUs would be a devaluation for me. For others, maybe not so much. With a little tweaking, it could provide value more equitably for everyone. That way, the perception that AS is giving you a benefit for your loyalty that has little or no value to you is averted.

James

jrl767

** FOR YOU ** -- you keep telling everyone that they won't have trouble if their travel dates are flexible, and that you actually prefer using your flexibility to fly YLW-SEA-PDX-ANC-LAX-SFO to maximize mileage accumulation and "value" of the GGU (esp when applied to a companion ticket) ... one more time, NOT EVERYONE has the same motivations as you when it comes to travel, and the "holier-than-thou" pontificating gets really annoying really quickly
I suspect some cynics could easily view that as a first step toward a revenue-based program

Eastbay1K

In the wise words of someone, "Keep the mohel away from my MVPG benefits!"

VFR

If this comes to pass (AS does a lot of market research surveys it seems), I do not expect that the benefit will be identical to the way it works currently. My conjecture is that it would be similar to what Delta does now -- pay a fee per segment for an upgrade with a slight discount to upgrade your entire itinerary. I also expect that it will be offered to everyone, with the ability to upgrade using US dollars, and then elites are given "upgrade dollars" that they can use instead of part/all of the cash cost of an upgrade. Folks on more complex itineraries would likely be paying more.

I don't have a horse in this race, I just find the airline industry interesting and speculating fun.

Mostly, because the industry tends more toward cutting elite benefits.

Flying for Fun

Fair analysis, thank you. It will definitely be interesting to see what AS looks like in oneworld. AS has been good at bucking trends and offering value, hopefully they will continue to subscribe to that.

It is all speculation right now. A simple question on a marketing survey & the apparent reduction in U space availability during a Pandemic may be a coincidence and not a done deal that many might be extrapolating from it. Interesting times.

James

VFR

Even if GGUs were to be eliminated, AS would still need to manage their U availability because it is used for mileage upgrades. Frequent flyer economics during a crisis get somewhat strange because it becomes vastly preferable to get cash for an F seat than to let someone upgrade and clear the equivalent liability (miles or certificates) from your books. Additionally, an AS manager let it slip that oneworld is planning an alliance-wide upgrade benefit. In my opinion, there is virtually no chance that GGUs (or AA SWUs) will be included, but you never know...

I didn't address the most important part of your post: if MVPs get Gold Guest Upgrades, then they will have to rename them

Flying for Fun

Slip or no slip, forthcoming oneworld upgrades is old news. Cranky Flyer and OMAAT have already written about it a week ago. How that looks and the utility for most AS Elites is yet to be known. GGUs & SWUs are carrier specific for their higher Elites; top Elite for AA. GGUs will get you a recliner seat on a sub 3K AS flight. SWUs are a little farther reaching with lie-flat J.

I don't see that one necessarily precludes the other. If I am not mistaken, this will be the first time two oneworld airlines will be based in the same country. AA & AS will have closer ties and offer Elite benefits; baggage allowance, priority check-in & boarding and possibly PREMIUM/MCE seat selection & a spot on the upgrade list on each other's metal outside oneworld. AS Elites had DL upgrade benefits in that era.

I think too many are reading too much into AS in a onewold alliance. I also think AA needs AS more than AS needs AA. AS is already selling AA native flights. AS Elites will be able to earn & redeem on the remaining oneworld partners. A new AS Tier is not required/necessary & existing non oneworld partnerships don't need to be wound up. QF partners with KL/AF.

Semantics! AS doesn't really differentiate between MVPG & MVPG75K. Fare rules, change & cancelation fee waivers refer to the encompassing Gold Member. 75Ks get a few more perks; upgrade priority & no charge Premium seat selection at booking on any non-Saver fare. Outside the additional perks for attaining the 75K version of Gold, they are all Gold Elite Members. Despite the 75K upgrade priority, many MVPG & some MVP still receive complimentary upgrades. AS could simply drop "Gold" or replace it with "Elite".

When AS introduced the "I" class in the F cabin I always thought that it would be used to distinguish between domestic F and International J like AA does. I can see that convention being adapted in oneworld.

James

NWplatinum

GGU’s were always a joke anyway. I’m glad that they’re getting rid of them and hopefully replacing them with something useful. I once had a IAH-SEA like 165 days out, no seats booked or taken in F. They wouldn’t even release any U space! I actually called MileagePlan and had them speak to a supervisor who ended up releasing space because I specifically requested it. But then what is the point of even having GGU’s? You could buy the most expensive Y class, they would never release U space on long(erish) haul flights.

Flying for Fun

One man's Joke, another man's Jewel! Out of curiosity, what would you find useful as a replacement, if there was a replacement? Honest question.

James

Eastbay1K

Honestly, isn't it "if there were a replacement?" I find them useful. I don't always use them all, but I use them sometimes, both personally and as friend/family gifts. One friend still talks about her only F flight, over 5 years ago, when she had no idea what was up until checking in @ SJD. Priceless.

dayone

AA and US Airways were both members of oneworld after the acquisition in March, 2014. I believe US operated as a separate airline for at least 18 months before it was combined into a single entity.

Flying for Fun

Interesting point post aquisition, pre merger, but still not two independent entities.

James

missamo80

No change fees for companions.