AA considering selling double RDMs, charging for online reward bookings
Jan 29, 2010, 9:43 pm
#16
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Every now and then a ridiculously boring government document reveals some interesting nuggets of data. Last March AA sent a letter off to the IRS requesting taxation guidance on 39 specific types of transactions. Among them were these two:
- Service P allows Members to purchase “bonus” Miles (i.e., double or triple miles) on certain flights to be credited to the Member’s Account. Currently, this service is occasionally offered to members free of charge on a limited-time basis. However, Taxpayer is preparing to offer Service P for a fee.
- Service CC allows Members to redeem Miles for the purchase of air transportation on Taxpayer’s website. At the time this letter ruling request was issued, Taxpayer was not charging a fee for Service CC. Taxpayer is, however, contemplating implementation of a fee for this service. The fee would be charged at the time of ticketing.
What is your source for believing that the redacted airline is American?
Jan 30, 2010, 1:28 am
#17
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I am probably a slow learner (I am not very good at interpreting bureaucrat speak that this seems to be written in)... but is what AA is saying that in future they would charge a fee for DBLEQM promotions or that you could choose to do DBLEQM whenever you wanted but that you would have too pay for it? Is this really a step towards allowing people to buy elite status? I assume that these are all trial baloons that they are floating? Do any of the competitors to AA have anything equivalent to these options?
Jan 30, 2010, 8:51 am
#18
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As I look around the web, I find this document on the IRS website, http://www.irs.gov/pub/irs-wd/1002004.pdf which appears to contain the entire text the portion of which you quote.
What is your source for believing that the redacted airline is American?
What is your source for believing that the redacted airline is American?
AA admits it according to that article. Sorry I didn't include that in my post on this half the story; I did include it on the previous post I made discussing the baggage fees.
Jan 30, 2010, 11:21 am
#19
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And when was that relative to the March 2009 date of the quoted letter?
If it was already after Delta had done that (or if it was after AA had learned Delta was considering doing it), then it doesn't seem drastic to me either. Just evaluation of a copycat move (like with the first, which is also possibly similar to an extra miles purchase that you could add to NW/KL flights bought on nwa.com for many years, dunno if DL has carried that over or not).
Jan 30, 2010, 12:39 pm
#20
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http://www.flyertalk.com/forum/ameri...e-dropped.html
Jan 30, 2010, 4:59 pm
#21
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