925

IMO, this is competitive, good for AA, and won't really upset the EXP applecart very much. This is true because of the 7 month window. If this was an ongoing product, and got 14 months if purchased on January 1, I'd have to re-think my position some.

EXP dilution isn't the issue. eVIP dilution on international flights in the next 7 months probably is.

925

Has anyone noticed the (likely) slick trick of buying the $10K card after January 1 to stretch the eVIPs for another 12 months? Wouldn't work for everybody, but for someone who was flying large in January/February...

JonNYC

There's not a reason in the world to believe that would work.

925

Why not? If I qualify in 2007, the eVIPs for a normal EXP would be good until 2/28/08. Why wouldn't these?

JonNYC

You're pulling my leg, right?

925

Nope, not pulling your leg. I am 12 time zones from home, dead tired, read only 25% of this (long) thread, but my comment was sincere, and well-intentioned.

JonNYC

In the exact post you quote, it says:
Get some rest!

And safe travels.

Capite

According to the AA website, the cards are only for sale through the end of August (next month).

925

The elite market would change dramatically if these could be bought anytime, ongoing - and they lasted for 12 (or even 6-9) months! I'd buy for five or more travelers (3 Plats and 2 Golds) AND aa would get business they don't currently get.

Blumie

Think about how many people would need to take advantage of this offer for VIP dilution to really be an issue. Everytime you use a VIP, you're already competing with any passenger - with or without status -- wanting to use a mileage upgrade, and there are exponentially more of those people than there ever will be newly minted EXPs as a result of this program.

I do agree with your and Jon's general point, however, that this is a good, competitive move for AA. I was thinking, for example, why they wouldn't want to offer this to existing EXPs: that is, give 8 extra VIPs to any existing EXP willing to prepay $10k worth of air travel. I suspect the answer is that the $10k prepaid by an existing EXP is unlikely to be incremental revenue. That is, it represents revenue AA likely would capture eventually anyway, albeit a few months early (although under GAAP I am sure AA cannot recognize the revenue from the sale of the cards all at once anyway). In the case of passengers who are not currently EXPs, on the other hand, I suspect that AA is predicting that a lot of the $10k cost of the card will be incremental revenue to AA: revenue that would have gone to a different airline or to no airline.

So given that I don't think this will have a significant impact on existing EXPs, this just strikes me as a shrewd move by AA.

JonNYC

That's definitely not gonna' happen.

And, prices would be more than double, needless to say. That's a given.

I really think your lack of sleep is creeping up on you.

ricktoronto

I agree it is not likely to happen, this seems much like a one shot to attract new customers. Better than AAirpass, in some cases ( like my CA routes which actually cost more with AAirpass than they do retail) since at least you get your money's worth.

I don't know how the prices of gift certificates can double at all. They are just gift certificates/prepaid travel vouchers.

BDLORD

I'm in, I was going to call for a comp. UA has pissed me off and AA flys to JFK-LHR and JFK-NRT. I have spent $3000 in the last three weeks on UA alone.
The $5000 is an easy spend for me.
I only read the 1st seven pages but has anyone found out how many EVIP's you do get?
Thanks,
Jon

tismfu

I think Jon means that the buy-in, pre-paid levels would change... i.e. $20k for EXP, $10k for PLT, etc.


Well, assuming you bought the $10,000 card for EXP, you'll get 8 eVIPs. If, however, you bought the $5000 card for PLT as indicated above, you'll get none.

ijgordon

You get 8 VIPs for Executive Platinum qualification. You get zero for Platinum, which is what the $5000 card would give you.

If that's all you're going for, and if you're doing JFK-NRT in paid J/F (or a high coach fare -- Y/B), you may be better off just signing up for the Platinum challenge. You'll qualify after your first segment posts, you'll get the 100% Platinum bonus on that segment, and you won't be subject to the restrictions of the prepaid travel card. And you'll be able to earn points/miles on the CC charge for the ticket. (Of course the r/t JFK-NRT in J/F would most likely use up most if not all of the $5000 card...)