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Speculation: New American AAdvantage FF Program Features (Discussion)

Speculation: New American AAdvantage FF Program Features (Discussion)

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Old Dec 1, 14, 10:53 pm   -   Wikipost
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Whatís next

We plan to bring current Dividend Miles accounts into the AAdvantage program in 2015
(date as yet unspecified - JD). That means we will combine your award mileage balances, your Million Milerô balances, and your elite-qualifying activity from both programs. In the meantime, continue to book travel and earn miles as you normally would. We will follow up with you when we begin the process of integrating accounts, but rest assured your miles and elite status are safe as we work to combine the two programs.

It will take some time to fully integrate our loyalty programs, including everything from the systems that support them to bringing our terms and conditions in line with one another. We will be sure to keep you updated as changes occur
.
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Old Jul 2, 14, 4:46 pm
  #796  
 
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I don't oppose a revenue based FFPs but I have a problem when carriers, i. e. Delta and United want someone to spend at least $2,500 for the lowest elite level for some marginal benefits, which don't even include lounge access (domestically or international). Even at the next level, you have to spend $5,000 and you do get lounge access internationally but the perks offered don't justify the spend, in my opinion. When you get to the top 2 levels, at $7,500 and $10,000/$12,500, you get regional and systemwide upgrades, which totally justify the spend requirement, especially if there are no fare restrictions.

Airlines are trying to run a business and there's nothing wrong with trying to make a profit but you have to make it worthwhile for your customers to want to be loyal to you and spend the amount you're asking. I don't feel that the perks offered at the lowest 2 levels justify the spend. In fact, I think I went as far as calculating how much it would cost to purchase the benefits offered on an annual basis and still didn't come close to the level spends required.

Consumers also exhibit the same behavior airlines do - try to cut costs and maximize their benefit (profit) - thus, always shopping for the lowest possible fare, trying to get to the highest status possible for the lowest amount. I don't see anything wrong with that behavior. There's no need to resort to calling people who fly on the cheapest fares "bottom feeders" - we know how the system works and use that to our advantage. If airlines and AA/US, in particular, want to adopt a revenue-based model FFP, I think that's totally fair, however, as mentioned upthread, the spend level and the perks offered need to be worth it.

Being granted club access by paying a credit card fee is a prime example for that - you pay a slightly lower price (within $100) and you also get the benefit of accumulating miles for the money you spend and other card perks as opposed to just buying a club membership. If that type of methodology is used in the revenue-based FFPs, I'm all for it.
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Old Jul 4, 14, 5:27 pm
  #797  
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When will AA announce details of the New AAdvantage?

Okay, we're officially into the second half of the year. UA has dropped its bombshell about RDMs for next year. DL's revealed most of its changes vis a vis redemptions after rocking the FF world with revenue based qualification and mileage accumulation. So would't it be fair of AA to make an announcement soon about what we can expect for 2015? Will we have a spend requirement like DL and UA? Will we see a similar RDM accumulation as UA?
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Old Jul 4, 14, 5:55 pm
  #798  
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Originally Posted by Shareholder View Post
DL's revealed most of its changes vis a vis redemptions after rocking the FF world with revenue based qualification and mileage accumulation.
There is a program speculation thread that is well established.

As a point of clarification, DL elite qualifying is still distance-based but with a spend component (for U.S.-based members only); the Medallion Qualifying Dollar element can be waived by DL Amex total spending. DL did give ~11 months notice for the MQD requirement that came into effect for elite-earning in 2014, and about 11 months for the spend-based redeemable mileage earning effective 1/1/2015.
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Old Jul 5, 14, 7:20 pm
  #799  
 
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Originally Posted by Phoenixtinct View Post
I don't oppose a revenue based FFPs but I have a problem when carriers, i. e. Delta and United want someone to spend at least $2,500 for the lowest elite level for some marginal benefits, which don't even include lounge access (domestically or international). Even at the next level, you have to spend $5,000 and you do get lounge access internationally but the perks offered don't justify the spend, in my opinion. When you get to the top 2 levels, at $7,500 and $10,000/$12,500, you get regional and systemwide upgrades, which totally justify the spend requirement, especially if there are no fare restrictions.

Airlines are trying to run a business and there's nothing wrong with trying to make a profit but you have to make it worthwhile for your customers to want to be loyal to you and spend the amount you're asking. I don't feel that the perks offered at the lowest 2 levels justify the spend. In fact, I think I went as far as calculating how much it would cost to purchase the benefits offered on an annual basis and still didn't come close to the level spends required.

Consumers also exhibit the same behavior airlines do - try to cut costs and maximize their benefit (profit) - thus, always shopping for the lowest possible fare, trying to get to the highest status possible for the lowest amount. I don't see anything wrong with that behavior. There's no need to resort to calling people who fly on the cheapest fares "bottom feeders" - we know how the system works and use that to our advantage. If airlines and AA/US, in particular, want to adopt a revenue-based model FFP, I think that's totally fair, however, as mentioned upthread, the spend level and the perks offered need to be worth it.

Being granted club access by paying a credit card fee is a prime example for that - you pay a slightly lower price (within $100) and you also get the benefit of accumulating miles for the money you spend and other card perks as opposed to just buying a club membership. If that type of methodology is used in the revenue-based FFPs, I'm all for it.
The message is clear ( and pretty accurate) If you're not spending a min of 2500 a year they can fill that seat with anyone so your "loyalty" at that point really doesn't matter.
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Old Jul 5, 14, 9:05 pm
  #800  
 
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Just a note from various sources that there will be no changes to AAdvantage or DM in 2015.
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Old Jul 6, 14, 11:07 am
  #801  
 
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Originally Posted by Col Ronson View Post
Just a note from various sources that there will be no changes to AAdvantage or DM in 2015.
It was announced that DM members get converted to an AAdvantage account at the end of 2014 for start of 2015. So with no announced changes, you have to assume that existing AAdvantage features and benefits prevail on Jan 1, 2015 for all - such as paid upgrades for less then EXP (or Chairman).

I think AA has enough work ahead of them to merge the accounts in AAdvantage then spending time modifying the current program. AAdvantage was voted as best FF program in the USA by Freddies - so unless UA and DL revenue skyrockets above AA with their spend based FF programs - it probably remains in AA's best interest to not change it at this time as they get more customers moving over from UA.
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Old Jul 6, 14, 11:58 am
  #802  
 
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Originally Posted by cova View Post
It was announced that DM members get converted to an AAdvantage account at the end of 2014 for start of 2015. So with no announced changes, you have to assume that existing AAdvantage features and benefits prevail on Jan 1, 2015 for all - such as paid upgrades for less then EXP (or Chairman).

I think AA has enough work ahead of them to merge the accounts in AAdvantage then spending time modifying the current program. AAdvantage was voted as best FF program in the USA by Freddies - so unless UA and DL revenue skyrockets above AA with their spend based FF programs - it probably remains in AA's best interest to not change it at this time as they get more customers moving over from UA.
Let me clarify:

That's the plan yes.

But dont' expect any sweeping changes to AAdvantage in 2015. Anything "big" will probably happen in 2016 or later. By big i mean revenue requirements, but AFAIK that has not been discussed yet. Most likely AA is gauging how the revenue based model works out for DL/UA.

But wasn't there a post saying that the combination of the two programs would not combine EQM? Theres so much conflicting information going around its so confusing.
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Old Jul 6, 14, 11:59 am
  #803  
 
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Originally Posted by cova View Post
It was announced that DM members get converted to an AAdvantage account at the end of 2014 for start of 2015. So with no announced changes, you have to assume that existing AAdvantage features and benefits prevail on Jan 1, 2015 for all - such as paid upgrades for less then EXP (or Chairman)....
I think that is incorrect. According to the USAIR website...


We expect to bring Dividend Miles member accounts into the AAdvantage program sometime during the year in 2015, and at that time will combine award mileage from both programs as well as Dividend Miles Preferred-qualifying activity with AAdvantage elite-qualifying activity in order to determine status in the AAdvantage program. Additionally, when the memberships are combined in 2015, Dividend Miles Preferred status memberships that are valid through February 2016 will be honored with the AAdvantage program status. This is a complex process, so we appreciate your understanding and we will communicate everything at the appropriate time. For now, these are all of the details we have to share.
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Old Jul 6, 14, 12:00 pm
  #804  
 
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"sometime during the year 2015" is the plan. But that might have been a premature statement on their part.
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Old Jul 6, 14, 4:18 pm
  #805  
 
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It also sounds like they will combine PQM, but someone posted a tweet saying that is not true from the AA twitter handle.
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Old Jul 6, 14, 4:51 pm
  #806  
 
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Originally Posted by 110pgl View Post
I think that is incorrect. According to the USAIR website...


We expect to bring Dividend Miles member accounts into the AAdvantage program sometime during the year in 2015, and at that time will combine award mileage from both programs as well as Dividend Miles Preferred-qualifying activity with AAdvantage elite-qualifying activity in order to determine status in the AAdvantage program. Additionally, when the memberships are combined in 2015, Dividend Miles Preferred status memberships that are valid through February 2016 will be honored with the AAdvantage program status. This is a complex process, so we appreciate your understanding and we will communicate everything at the appropriate time. For now, these are all of the details we have to share.

The way I read the email from AA (this is the US email) was that on Jan 1, 2014, DM members would be given an AAdvantage account - so that all earning in 2015 would be on that account. RDM would be combined. But not EQM for 2015 status.
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Old Jul 6, 14, 7:08 pm
  #807  
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No Pink Elephant Question, but When Does AA Announce Program Changes

So the pink elephant question is: "When/If AA will follow DL and UA's lead and switch to earning miles as a function of the ticket price cost". If you know that answer feel free to chime in!

But in the mean time when does AA announce changes to its FF program for 2015? is it too late to make changes so AA will keep its current model of earning miles until the end of 2015?
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Old Jul 6, 14, 7:22 pm
  #808  
 
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Originally Posted by inpd View Post
So the pink elephant question is: "When/If AA will follow DL and UA's lead and switch to earning miles as a function of the ticket price cost". If you know that answer feel free to chime in!

But in the mean time when does AA announce changes to its FF program for 2015? is it too late to make changes so AA will keep its current model of earning miles until the end of 2015?
There will be no changes to AAdvantage for 2015, i am 95% sure based on my source who is upper level management.

Any major changes will probably come in 2016 though. Most likely revenue based on par with UA/DL.
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Old Jul 6, 14, 7:40 pm
  #809  
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Recent thread in the pre-merger AA forum has been merged with this existing discussion about the potential changes to the AAdvantage program. Thanks. /Moderator
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Old Jul 6, 14, 8:04 pm
  #810  
 
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Originally Posted by cova View Post
The way I read the email from AA (this is the US email) was that on Jan 1, 2014, DM members would be given an AAdvantage account - so that all earning in 2015 would be on that account. RDM would be combined. But not EQM for 2015 status.
I guess both could be true... the AA number is given at day 1 and the actual merger later.... but that seems problematic... is status given with the number?
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