Need status thoughts & Code Blue SWU

 
Old Feb 21, 2014, 6:14 pm
  #16  
 
Join Date: Sep 2010
Location: DFW
Programs: AA EXP, SPG Platinum, HHonors Diamond
Posts: 383
Originally Posted by imapilotaz
You know, for those on here stating they cant make a $10,000 minimum spend for 100,000 miles, I can honestly say that AA probably doesnt need you as a customer. AA's CASM for 3Q2013 was 13.65 cents. The average yield was 15.2 cents. So if you are flying 100,000 miles and can't hit $10,000 dollars, you are yielding AA less than 10 cents, or 33% worse than their average.

This probably will be unpopular on FT, but frankly, if you arent even in the ballpark of the average yield, AA should jettison your valuable benefits. This is no longer the time with 70% LFs and your seat would have otherwise gone empty. Except on very few flights, there is spillage and spilling high yielding passengers, or keeping them from getting the same benefits (upgrades) because it was sold 4 months in advance to a MR'ing EXP with a 6 cent yield is not good business sense.
Agree with other responses, it's not a matter of whether someone can but whether a customer "wants" to jettison the concept of shopping competitive fares compared to maintaining loyalty. An annual dilemma.

Especially when the value proposition is changing, i.e., sitting on expiring SWUs (not for lack of trying), finish line for LT benefits now out of reach and then pile on the prospect of a minimum spend.

Getting to min spend on business/reimbursed travel is a slam dunk, but for folks on the margins who supplement with personal travel to reach EXP, loyalty only locks in choices and fares ... it doesn't help if the signal is sent that these aren't customers worth consideration. That annual dilemma tilts further.

AA might look to "jettison" these customers (which I doubt), but I can't get why someone on FT couldn't look beyond their own circumstances in how they value their status versus another customer.
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