Originally Posted by FleyeSkyHigh

I’ve been involved and an observer to negotiations between AA and some larger corporate customers regarding the Airpass program. AA has drawn a line in the sand in that they absolutely will not and cannot extend Airpass contacts past their original end date (inclusive of the standard one-year extension option). In essence the only thing they are offering is to “waive” the nominal cost/fee of the extension option that exists in the contracts already (which normally was a maximum of a onetime $600 fee). That does nothing to help companies that already were into the extension period of their contract and little to help those that were approaching the 1-year mark. AA is also standing firm that per the contract language only a single extension will be allowed per contract so for those negotiating with AA don’t take a three, six, or nine-month extension without demanding a 12 month extension as now all extensions will be at equal cost (zero).

In addition, AA is also offering to allow AAirpass customers to roll existing funds in an expiring contract (which they already allowed) to a new contact BUT is now also offering to count those rolled funds towards the minimum threshold for a particular threshold (which they did not do before). For example, if a contract had $8,000 remaining, a company would “only” need to cough up an additional $2,000 to meet the $10,000 minimum contract threshold. Further, AAirpass previously offered unpublished discounts to the standard $0.40 base mileage multiplier rate for larger commitments and they are now also allowing rolled funds to count towards that threshold (so for example, if a larger corporation had $6.5MM left in a contract then would “only” have to wire over an additional $3.5MM) to lock in whatever base multiplier that applied to their $10MM annual commitment contact (which is meaningfully less than $0.40/mile). AA also has indicated that they have their hands tied at least for the next 18 months with regards to changing any of the new higher rate bands which took affect in early 2020.

In the first couple months of the pandemic Airpass was throwing around CK and EP status extensions but that was all quickly shutdown by the AAdvantage business unit and will not be repeated. As I have previously suggested I believe AA’s inability and inflexibility with regards to Airpass is that the programs have been used as collateral against various loan commitments or the modification of the program terms is covered by covenants of existing debt obligations.

In my opinion, the Airpass program, which use to be quite useful, will slowly die and is basically being killed off by a change in direction for the airline. Over the past several years the Airpass program was already falling out of favor with in the organization. It had been bounced around a bit within the company and finally was absorbed into the business unit that primary handles Business Extra and Meeting Services and based on my dealings with the company Airpass is definitely not a priority (despite the cash it has on the balance sheet but that of course is countered by the liability of the few remaining uncapped contract holders). The industry has experienced a paramount change in short order due to the pandemic and Airpass doesn’t fit with the direction of the airline and where its leadership is taking the company. Private and charter travel is picking up the high dollar business traveler and the legacy carriers are more and more focusing on the commodity business and leisure markets. Business commercial air travel is no longer the cash cow that it once was a decade ago to the legacy carriers. Despite all the money AA spent on a new website for Airpass last year, I believe the program will sunset over the next several years once any collateralized obligations expire.

Originally Posted by FleyeSkyHigh

In my opinion, the Airpass program, which use to be quite useful, will slowly die and is basically being killed off by a change in direction for the airline. Over the past several years the Airpass program was already falling out of favor with in the organization. It had been bounced around a bit within the company and finally was absorbed into the business unit that primary handles Business Extra and Meeting Services and based on my dealings with the company Airpass is definitely not a priority (despite the cash it has on the balance sheet but that of course is countered by the liability of the few remaining uncapped contract holders). The industry has experienced a paramount change in short order due to the pandemic and Airpass doesn’t fit with the direction of the airline and where its leadership is taking the company. Private and charter travel is picking up the high dollar business traveler and the legacy carriers are more and more focusing on the commodity business and leisure markets. Business commercial air travel is no longer the cash cow that it once was a decade ago to the legacy carriers. Despite all the money AA spent on a new website for Airpass last year, I believe the program will sunset over the next several years once any collateralized obligations expire.

Originally Posted by BlooJoo

Hello, all. I'm an Airpass CK signed 3/18/20. Membership extended to 9/15/21 (thank you). One thing I noticed is that my SWUs and FFD passes were only extended with the first extension to 6/17/21. Not to be a big complainer, but has anyone gotten these extended to the later date? With FFD still closed, I'd expect that would be an easy ask, but maybe not so much the SWUs.

Originally Posted by FleyeSkyHigh

The AA policy right now for Airpass is that they will be extended contracts only one time, regardless of extension of time (but only up to a 12 month maximum extension). So if they extended a contract for six months that is the only extension they will grant which is pursuant to the Airpass contract and the contract supersedes and prevails over all other promises, communications, gestures, ect. That is the official line from Airpass thus far.

With regards to extension of CK status and SWUs… that is at the discretion of the AAdvantage business unit but the company has no policy to extend ‘comp'd’ CK status and benefits. AAdvantage considers CK status from Airpass as comp’d. In other words, while they did do a blanket CK status/benefits extension to Jan of 2022 for members that 'earned' CK status they did not for Airpass granted CK. However, since AA has been handing out CK status on a much more aggressive basis now it's likely that the AA rating system is flagging many CK status Airpass holders (along with non Airpass flyers) that are flying in premium cabin full fares. EQDs in the teens are now even getting CK status so many Airpass comp'd accounts are ‘earning’ CK status now anyways.

If you have a large enough Airpass contract that is managed by a dedicated sales rep then you may have some success in getting that rep to lobby for some consideration of extensions of CK status and benefits (SWUs and FFDs) by AAdvantage. I think the success of such efforts will largely be based on how well connected your Airpass sales rep is within the company coupled with how many hundreds of thousands the contract is with the company.

I think the extension of FFDs is a moot point as most now do not expect FFD to return ever especially as cross-country flagship first is likely going away this year. Some of the flagship first Airbus 321T aircraft have already been stored and they likely will be removing Flagship First cabin from the 321T this year as they ‘Oasis’ the Airbus fleet. The Flagship First cabin on the Boeing 777-300ER is also on the cutting block in that those cabins will also most likely not be renewed in the future and removed in favor of a more dense configuration. The 77W could actually be retired sooner than one would expect with new 787-900 deliveries.

Simply put AA is well into the process of redefining itself as a higher density and lower cost carrier focused on more non-premium leisure/business travel as the industry has changed and they really have no choice but to conform. The higher spend business traveler is being picked up by private jet operators (esp for domestic and short haul) and niche carriers that focus solely on business class cabins (for longer haul and international). For example, business class only FBO type carriers/companies are already negotiating leases for almost new planes (787 and 350 varieties) and will start offering suite only business cabin (with all the bells and whistles in terms of hard and soft product, ie high end catering, large suites with sofas/doors, ect) when demand for premium long haul returns. Think of routes such as LAX-JFK, JFK-LHR, LHR-DXB, LAX-HKG operating out of the FBO/private airside terminals. Delta for example saw such a potential change coming to business air travel more than a decade ago and instead of investing in such a costly Flagship product and ground operations offering (the way AA did with the ‘Flagship’ brand) they positioned themselves with Delta Private Jets whose popularity has surged in recent years especially with Delta doubling down on Wheels Up more recently.

Originally Posted by BlooJoo

Interesting and comprehensive analysis, thank you. Agree FFD passes extension likely moot. It would be nice to get the SWUs extended, but I think I’ll likely end up gifting them, since I never buy Coach.

Question on Airpass comped CKs: Do you think the flying I’m doing now, in premium cabins, using my Airpass dollars, counts towards requalification? I mostly use the Airpass Y option that books into D, R or I (the upgrades at booking option, which seems like a slight misnomer). If I burn through $60K of those before September when my contract and CK expires, does that “count” at $60K premium cabin spend? And if I’m renewed to CK in September 2021, is that until September 2022 or December 2022, or...?

Originally Posted by FleyeSkyHigh

I would absolutely expect your flying and the EQDs that you are accumulating (regardless that they are coming from Airpass dollars) will count toward CK qualification. I will say that it is widely believed that the algorithm looks at rolling last 12 month spend and seeks out who gets CK by giving heavier weight to full F and full J fares but we don't really know how much preference (which presumably is dynamic and changing based on a multitude of factors such as route profitability, maybe even time of year). That said airpass Y-up journeys definitely could get you CK albeit maybe requiring more spend (maybe 50% to 2x more if I had to guess). One thing that you might try to get slightly heavier weighting is to book your airpass up fares in the following preference: 'R' then 'D' then 'I' as technically speaking "R" is the more 'expensive' whereas "I" is the least expensive. That said, if you book online the AA Airpass web interface will always book the least 'expensive' available Y-UP (so in other words the website books in 'I' then 'D' then 'R'). So it's impossible to this do via the website but you can book a full Y (non-up fare) using the website then call the Airpass reservation desk (same as EP) and ask for them to change the booking code from Y to R (or D if R is zero).

My guess on the term of newly earned CK status is probably as good as yours. If I had to wager, if you are awarded CK status by the AA for 'flying spend' (using Airpass dollars or other revenue sources) I think that it would be valid for a year from when you get notification from AA that they are giving it to you. So if you got the welcome to CK e-mail on July 15th, 2021 I would expect if would run through to approximately July 15th of 2022 and the reason is that historically CK is based on last rolling 12 months spend/flying where as typical AAdvantage status is based on calendar year. However, with the new precedence that was set by CK earned extensions all to the end of Jan of 2022 perhaps CK status term will mimic the rules that regular AAdvantage status follows in that if you earn it anytime in 2021 then you good to end of Jan of 2023. I think they will stick with rolling 12 months as they have done in the past but that's purely speculation.

Originally Posted by codeontheboat

Hello,
I am interested in purchasing AA Airpass. anyone know if it 5x points when using Amex Platinum?

Originally Posted by BlooJoo

I did in March 2020.

Originally Posted by codeontheboat

Just to be clear, were you able to get 5x points? 25,000 points?

Originally Posted by BlooJoo

I got 5X $60,000, so 300,000 points.

Originally Posted by BlooJoo

I got 5X $60,000, so 300,000 points.