Oct 24, 2016, 11:10 am
Last edit by: JDiver
NOTE: As FlyerTalk is a frequent flyer (passenger) site, you won’t find much experience or knowledge about Employee or Buddy Passes here if our AA employee members are off flying or choose not to answer.
Your best information source on Employee and Buddy Passes is the airline, or in the case you were granted a Buddy Pass by an employee, your employee sponsor.
Your best information source on Employee and Buddy Passes is the airline, or in the case you were granted a Buddy Pass by an employee, your employee sponsor.
Where do you stack up against other non-revenue pass riders while flying standby on American Airlines flights? Find your group in the prioritized list below. Be sure to check in for your flight as early as possible, as priority within groups is determined by time of check in.
D1 – Eligible employees using allotted passes
D2 – American Airlines and wholly-owned employees and their parents when accompanied
D2R – Retirees
D2P – Parents traveling without employee
AAC* – Employees of non-wholly owned regionals and their companions
D3 – Buddy passes
ONE – oneworld employees
ZED – Other airline employees traveling on ZED tickets
*AAC – Non-wholly owned regional employees traveling on their “own metal” will be boarded first
Link to clearedlist.net
D1 – Eligible employees using allotted passes
D2 – American Airlines and wholly-owned employees and their parents when accompanied
D2R – Retirees
D2P – Parents traveling without employee
AAC* – Employees of non-wholly owned regionals and their companions
D3 – Buddy passes
ONE – oneworld employees
ZED – Other airline employees traveling on ZED tickets
*AAC – Non-wholly owned regional employees traveling on their “own metal” will be boarded first
Link to clearedlist.net
All things Employee & Buddy Pass (D3, D* passes etc.) (consolidated)
May 22, 2005, 6:00 am
#16
Join Date: Aug 2003
Location: Washington, DC
Programs: AA GLD (1MM), DL GLD, Marriott Plat, RCL D+, X Elite
Posts: 3,229
While I don't have any current figures to offer, it was not unheard of for the buddy passes (which are low priority standby passes), to cost more than the lowest available restricted fare on many routes.
A very few of the employees always got wrapped around the axle about this benefit for some reason. Sounds like this F/A may be one of them. I'd be shocked beyond belief that AA's buddy pass system is costing it 50 million a year in revenue.
As for board of directors travel, unless it's changed, they receive unlimited A4 priority travel which is confirmable positive space travel in any class of service. I guess some of the board uses it more than others.
A4 is the same priority that a Managing Director level employee would fly. And if AA didn't give them that benefit, does that automatically mean that those individuals will spend the same amount of $$ that AA values the travel at on AA? I doubt it. Again, some of the employees would get steamed about the higher ups having positive space travel in any class. Personally, I could've cared less, and still feel the same way. Upper management and board members get perks. That's life. And AA's perks pale in comparison to what other companies offer.... I know my salary sure did.
A very few of the employees always got wrapped around the axle about this benefit for some reason. Sounds like this F/A may be one of them. I'd be shocked beyond belief that AA's buddy pass system is costing it 50 million a year in revenue.
As for board of directors travel, unless it's changed, they receive unlimited A4 priority travel which is confirmable positive space travel in any class of service. I guess some of the board uses it more than others.
A4 is the same priority that a Managing Director level employee would fly. And if AA didn't give them that benefit, does that automatically mean that those individuals will spend the same amount of $$ that AA values the travel at on AA? I doubt it. Again, some of the employees would get steamed about the higher ups having positive space travel in any class. Personally, I could've cared less, and still feel the same way. Upper management and board members get perks. That's life. And AA's perks pale in comparison to what other companies offer.... I know my salary sure did.
May 22, 2005, 8:44 am
#17
Join Date: Nov 2003
Location: JFK/LGA
Programs: AA EXP/5 MM, BA Blue Bayou, HH LT Diamond
Posts: 5,825
I must admit this got me pretty steamed reading the article on the treadmill this morning. If demand is so strong and the value left on the table so great for a few seats per flight as to warrant the end of MRTC than why have extended family/friends fly free?
May 22, 2005, 9:02 am
#18
Join Date: Mar 2001
Location: Dallas
Programs: AA PLT/5MM; AS MVP GLD 75K; DL DM; EK SLV; HHonors DIAM; Marriott GLD
Posts: 4,092
Since I usually find flyastrojets to be on the side of reason and common sense, I want to do some more thinking about this one.
However, somewhat like pauleeeplaul, my initial reaction is pretty negative. If, and that's a big if, AA's buddy pass program really was expanded in 2000, with an associated incremental cost $50 million, this is just plain bizarre, particularly in light of some of the more obnoxious cutbacks which, in the most optimistic of cases, are probably not saving AA much at all (i.e. pillows, soy nuts, pain relievers, short catering soft drinks, short catering F class desserts, etc.).
However, somewhat like pauleeeplaul, my initial reaction is pretty negative. If, and that's a big if, AA's buddy pass program really was expanded in 2000, with an associated incremental cost $50 million, this is just plain bizarre, particularly in light of some of the more obnoxious cutbacks which, in the most optimistic of cases, are probably not saving AA much at all (i.e. pillows, soy nuts, pain relievers, short catering soft drinks, short catering F class desserts, etc.).
May 22, 2005, 9:43 am
#19
Join Date: Aug 2003
Location: Washington, DC
Programs: AA GLD (1MM), DL GLD, Marriott Plat, RCL D+, X Elite
Posts: 3,229
The program was expanded in 2000 or thereabouts. Some brief details...
Employees get travel privileges. The travel privilege is extended to the employee, spouse, and dependent children. Travel is unlimited. A service charge applies to those with less than 5 years of seniority. At 5 years, I believe domestic travel is free in Y. In F, a service charge still applies. These service charges are mileage based, and the 5.00 security fee is included as well. Included with the travel benefit are a bank of 24 one way passes (or 12 roundtrips). This bank can be given to anyone. These guests (which include your parents or inlaws) travel at a lower priority than employees. Additionally, a single employee can designate 1 person to be their registered companion. The registered companion flies at the same priority as the employee, but their travel comes out of the pass bank. Registered companions could only be changed once per year. So if you are the type that changes girlfriends every month, you were out of luck. Girlfriend of flyastrojets was my registered companion. She could take a maximum of 12 roundtrips. If my mother flew 1 roundtrip, that was one less roundtrip that lady astrojets could take. The registered companion program was AA's answer to the complaints of the many single employees who felt that they did not get to maximize their travel privilege because they weren't married. Domestic Partners received identical travel to married employees I think. Although there might be some tax implications...I'm not sure.
At one time, these buddy passes could only be given to family members (cousins, aunts, uncles, children no longer living at home, etc) This benefit was expanded in the late 90s to include anyone. And then the registered companion benefit came along in the 2000 timeframe, I think.
Please keep in mind that except for management at the Director level and above, travel privileges are a benefit only if there is a seat that is not occupied by a fare paying customer. It's standby travel, and the buddy passes are among the lowest priority on the list. The article implies that people could be traveling on buddy passes while an employee might not get a seat. Simply not true with the possible exception of those designated as a registered companion (a fairly tightly controlled program). Buddy passes are not cheap, and to be honest, were often no more economical than buying the cheapest available fare in any given market. AA embargoes their usage in certain peak travel periods such as during the summer to Europe. And frankly, if someone misused them, an employee's "buddy" could be the cause of the employee losing their own travel privileges or their job.
AA has a well-deserved reputation of being a bit strict on employee travel. AA charged employees more than any other airline for standby flights, and unless you've got 5 years with the company, probably still does. I'm not quite sure how that $50 million number was generated, but I'd be interested to know for sure. AA has a cost number associated with employee travel. They know exactly how much extra fuel is burned on a flight if one standby employee is boarded, etc, etc. I have a pretty high level of confidence that if there was a cost problem with employee travel, it would get some attention.
I may be wrong, but I think the employee in this article was making much ado about nothing. Just my opinion, and everyone including that employee are entitled to their own.
On the matter of board of directors travel...I'm not really educated enough on the subject to talk about it with intelligence. Although I believe the article has a misprint... it says director travel was over a quarter million (a fancy way of saying 250 grand) last year. But 1.4 billion over the last 5 years? I can't believe that's correct.
Employees get travel privileges. The travel privilege is extended to the employee, spouse, and dependent children. Travel is unlimited. A service charge applies to those with less than 5 years of seniority. At 5 years, I believe domestic travel is free in Y. In F, a service charge still applies. These service charges are mileage based, and the 5.00 security fee is included as well. Included with the travel benefit are a bank of 24 one way passes (or 12 roundtrips). This bank can be given to anyone. These guests (which include your parents or inlaws) travel at a lower priority than employees. Additionally, a single employee can designate 1 person to be their registered companion. The registered companion flies at the same priority as the employee, but their travel comes out of the pass bank. Registered companions could only be changed once per year. So if you are the type that changes girlfriends every month, you were out of luck. Girlfriend of flyastrojets was my registered companion. She could take a maximum of 12 roundtrips. If my mother flew 1 roundtrip, that was one less roundtrip that lady astrojets could take. The registered companion program was AA's answer to the complaints of the many single employees who felt that they did not get to maximize their travel privilege because they weren't married. Domestic Partners received identical travel to married employees I think. Although there might be some tax implications...I'm not sure.
At one time, these buddy passes could only be given to family members (cousins, aunts, uncles, children no longer living at home, etc) This benefit was expanded in the late 90s to include anyone. And then the registered companion benefit came along in the 2000 timeframe, I think.
Please keep in mind that except for management at the Director level and above, travel privileges are a benefit only if there is a seat that is not occupied by a fare paying customer. It's standby travel, and the buddy passes are among the lowest priority on the list. The article implies that people could be traveling on buddy passes while an employee might not get a seat. Simply not true with the possible exception of those designated as a registered companion (a fairly tightly controlled program). Buddy passes are not cheap, and to be honest, were often no more economical than buying the cheapest available fare in any given market. AA embargoes their usage in certain peak travel periods such as during the summer to Europe. And frankly, if someone misused them, an employee's "buddy" could be the cause of the employee losing their own travel privileges or their job.
AA has a well-deserved reputation of being a bit strict on employee travel. AA charged employees more than any other airline for standby flights, and unless you've got 5 years with the company, probably still does. I'm not quite sure how that $50 million number was generated, but I'd be interested to know for sure. AA has a cost number associated with employee travel. They know exactly how much extra fuel is burned on a flight if one standby employee is boarded, etc, etc. I have a pretty high level of confidence that if there was a cost problem with employee travel, it would get some attention.
I may be wrong, but I think the employee in this article was making much ado about nothing. Just my opinion, and everyone including that employee are entitled to their own.
On the matter of board of directors travel...I'm not really educated enough on the subject to talk about it with intelligence. Although I believe the article has a misprint... it says director travel was over a quarter million (a fancy way of saying 250 grand) last year. But 1.4 billion over the last 5 years? I can't believe that's correct.
Last edited by MJonTravel; May 22, 2005 at 10:05 am
May 22, 2005, 10:51 am
#20
Join Date: Mar 2001
Location: Dallas
Programs: AA PLT/5MM; AS MVP GLD 75K; DL DM; EK SLV; HHonors DIAM; Marriott GLD
Posts: 4,092
Once again, flyastrojets saves the day with an overwhelming knowledge of facts and specifics.
The way you describe it, this program actually seems like a creative employee perk that doesn't cost the company anything close to $50 million per annum.
1) No paying pax appear to be displaced; and
2) The passes appear hard enough to use that they couldn't be a very practical alternative to paid travel, when you kind of need to know that you are really going to get from point A to point B in a reasonable timeframe.
Indeed, as I read the article more closely, I now understand that the sole source of the $50 million figure was the flight attendant, although the article's author seems to go out of her way to create the (false) impression that this is a credible number.
Indeed, a review of the only other supposed "fact" thrown out by Ms. Haddon reveals her to have less than a strong grasp of numbers:
One director received more than $61,000 under this perk. That would cover 145 round trips between New York and Tokyo... by Ms. Haddon's calcualtion.
That works out to $420 per round trip!!
A more realistic interpretation is that the $61,000 represents three long-haul F class roundtrips for the director and his wife. Judging by the number of int'l F class seats occupied by customers paying full freight, I suspect the true cost of this perk was a fraction of the reported amount.
Sigh, another example of sloppy/biased reporting. It's hard to believe that the article's author, Gretchen Morgenson, isn't more closely supervised.... particularly given the problems with facts the New York Times has suffered recently.
The way you describe it, this program actually seems like a creative employee perk that doesn't cost the company anything close to $50 million per annum.
1) No paying pax appear to be displaced; and
2) The passes appear hard enough to use that they couldn't be a very practical alternative to paid travel, when you kind of need to know that you are really going to get from point A to point B in a reasonable timeframe.
Indeed, as I read the article more closely, I now understand that the sole source of the $50 million figure was the flight attendant, although the article's author seems to go out of her way to create the (false) impression that this is a credible number.
Indeed, a review of the only other supposed "fact" thrown out by Ms. Haddon reveals her to have less than a strong grasp of numbers:
One director received more than $61,000 under this perk. That would cover 145 round trips between New York and Tokyo... by Ms. Haddon's calcualtion.
That works out to $420 per round trip!!
A more realistic interpretation is that the $61,000 represents three long-haul F class roundtrips for the director and his wife. Judging by the number of int'l F class seats occupied by customers paying full freight, I suspect the true cost of this perk was a fraction of the reported amount.
Sigh, another example of sloppy/biased reporting. It's hard to believe that the article's author, Gretchen Morgenson, isn't more closely supervised.... particularly given the problems with facts the New York Times has suffered recently.
Last edited by HKG_Flyer1; May 22, 2005 at 11:22 am
May 22, 2005, 12:15 pm
#21
Join Date: Jan 2005
Location: New York
Programs: AA Plat, CO Gold
Posts: 1,598
Originally Posted by HKG_Flyer1
One director received more than $61,000 under this perk. That would cover 145 round trips between New York and Tokyo... by Ms. Haddon's calcualtion.
That works out to $420 per round trip!!
Sigh, another example of sloppy/biased reporting. It's hard to believe that the article's author, Gretchen Morgenson, isn't more closely supervised.... particularly given the problems with facts the New York Times has suffered recently.
That works out to $420 per round trip!!
Sigh, another example of sloppy/biased reporting. It's hard to believe that the article's author, Gretchen Morgenson, isn't more closely supervised.... particularly given the problems with facts the New York Times has suffered recently.
Regarding Morgensen, she's sort of the Grand Dame of the NYT business page these days. I think she carved out a large reputation for herself reporting the numerous business scandals of the late 90's and early 00's so is given carte blanche to do whatever she wants. And to be fair, she did ask AA to provide more reasonable estimates on the cost of this program and they refused to do so.
May 22, 2005, 2:12 pm
#22
Join Date: Mar 2001
Location: Dallas
Programs: AA PLT/5MM; AS MVP GLD 75K; DL DM; EK SLV; HHonors DIAM; Marriott GLD
Posts: 4,092
Originally Posted by acf573
Well, I guess the question is, how does AA account for those costs? If a director books an F ticket, does AA write it down as $15k? Or do they book it as actual cost of transportation (fuel, labor, depreciation, food, alcohol)? If it's the latter, the $420 per RT figure makes more sense.
Originally Posted by acf573
Regarding Morgensen, she's sort of the Grand Dame of the NYT business page these days. I think she carved out a large reputation for herself reporting the numerous business scandals of the late 90's and early 00's so is given carte blanche to do whatever she wants. And to be fair, she did ask AA to provide more reasonable estimates on the cost of this program and they refused to do so.
May 22, 2005, 2:26 pm
#23
Join Date: Nov 2003
Location: JFK/LGA
Programs: AA EXP/5 MM, BA Blue Bayou, HH LT Diamond
Posts: 5,825
Originally Posted by HKG_Flyer1
I really got the impression reading her story that this was an op-ed piece masquerading as an article, with the author having a pre-conceived opinion that needed some "facts" to be thrown is as filler/supporting justification.
May 22, 2005, 3:22 pm
#24
FlyerTalk Evangelist
Join Date: Sep 2003
Location: MileagePlus Premier Gold
Posts: 11,522
I think the assumption in $50m in lost revenue is simply based on people who would have purchased a more expensive revenue confirmed ticket, are now flying standby using a friend's companion passes.
May 22, 2005, 5:25 pm
#25
Join Date: Apr 2001
Location: Slackerville, FL USA
Posts: 1,844
Originally Posted by UnitedSkies
I think the assumption in $50m in lost revenue is simply based on people who would have purchased a more expensive revenue confirmed ticket, are now flying standby using a friend's companion passes.
IF directors travel privileges state that the taxes are picked up by AA for the director and family members and that they bump revenue passengers then it absolutely needs to be eliminated or revised.
Last edited by AAFA; May 22, 2005 at 5:42 pm
May 22, 2005, 7:51 pm
#26
A FlyerTalk Posting Legend
Join Date: Feb 2000
Location: Cambridge
Posts: 63,597
Originally Posted by HKG_Flyer1
I really got the impression reading her story that this was an op-ed piece masquerading as an article, with the author having a pre-conceived opinion that needed some "facts" to be thrown is as filler/supporting justification.
Welcome to US journalism in general and the NY Times in particular.
Welcome to US journalism in general and the NY Times in particular.
May 22, 2005, 8:02 pm
#27
FlyerTalk Evangelist
Join Date: Jan 2001
Location: NYC
Programs: AA EXP / LT PLT / 3MM, Marriott LT Gold
Posts: 35,366
Originally Posted by Plato90s
This article appeared in the Op-Ed section of the paper.
Having said that, I find her columns to be insightful and reasonably fair in general. Who can argue with the following?
"But why Mr. Purcell, who made $22 million last year in salary, bonus and restricted stock, needed to bill AMR shareholders $14,528 in travel and taxes last year is a puzzler.
"That any of AMR's directors would choose to bill shareholders for the taxes generated by travel is just another data point for your "executive excess" file. It's not a lot of money. Then again, that's what makes it so cheesy.
"Do members of the executive class pay for anything they use or consume? Is it not enough that they make piles of money? Does every single product or service have to show up on some shareholder's tab?
"Alas, the answer becomes more obvious by the day."
May 22, 2005, 8:08 pm
#28
FlyerTalk Evangelist
Join Date: Jan 2001
Location: NYC
Programs: AA EXP / LT PLT / 3MM, Marriott LT Gold
Posts: 35,366
Originally Posted by pauleeepaul
Welcome to US journalism in general and the NY Times in particular.
May 22, 2005, 8:22 pm
#29
Join Date: Jun 2004
Posts: 589
"Among those who benefit from the generous travel arrangements are AMR's outside directors, their spouses and dependent children. According to its proxy filing, AMR provides travel to directors and their families and pays the taxes that the perks generate. The company accounts for these perks at cost. Last year, these costs were over a quarter-million dollars. In the last five years, the costs totaled $1.4 billion."
--I don't understand this figure at all- it cost $250,000 last year, but $1.4 billion over the past 5 years? Does that mean it cost $1,399,750,000 over 4 years, but then just $250,000 last year?
--I'm fairly certain these programs are a profit center for the airlines, and that is before you consider the following:
1. Airlines purchase their labor in labor markets
2. Cash is the primary form of compensation
3. If you cut cash compensation below a certain amount, some of your labor will leave.
4. If you can supply your employees with a benefit that allows you to cut wages (or forestall wage increase) more than the cost to you of the benefit, you increase your profitibility by offering the benefit
5. Buddy pass programs have a minimal, if any, cost to the airline
6. Buddy pass programs are valued by the employess, and allow the airlines to cut wages by far more than the cost of the benefit
One might respond that airline workers' wages are already above-market due to unions, etc., but that ignores how many airline jobs are nonunion at this point (including management--they are also paid less due to this benefit), and also ignores the fact that even union jobs are subject to the labor market-- note the difficulties the airlines are having attracting entry level mechanics.
--I don't understand this figure at all- it cost $250,000 last year, but $1.4 billion over the past 5 years? Does that mean it cost $1,399,750,000 over 4 years, but then just $250,000 last year?
--I'm fairly certain these programs are a profit center for the airlines, and that is before you consider the following:
1. Airlines purchase their labor in labor markets
2. Cash is the primary form of compensation
3. If you cut cash compensation below a certain amount, some of your labor will leave.
4. If you can supply your employees with a benefit that allows you to cut wages (or forestall wage increase) more than the cost to you of the benefit, you increase your profitibility by offering the benefit
5. Buddy pass programs have a minimal, if any, cost to the airline
6. Buddy pass programs are valued by the employess, and allow the airlines to cut wages by far more than the cost of the benefit
One might respond that airline workers' wages are already above-market due to unions, etc., but that ignores how many airline jobs are nonunion at this point (including management--they are also paid less due to this benefit), and also ignores the fact that even union jobs are subject to the labor market-- note the difficulties the airlines are having attracting entry level mechanics.
May 22, 2005, 8:25 pm
#30
Join Date: Jun 2004
Posts: 589
Originally Posted by vasantn
I agree with you about US journalism in general, but the New York Times is one of the best newspapers in the world. Of course they have an editorial slant, but their reporting is first-rate; certainly much better than the once-mighty London Times that has now become a Murdoch rag.