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-   American Airlines | AAdvantage (https://www.flyertalk.com/forum/american-airlines-aadvantage-733/)
-   -   ARCHIVE: Speculation: Future changes to AAdvantage program? (Consolidated) (https://www.flyertalk.com/forum/american-airlines-aadvantage/1646078-archive-speculation-future-changes-aadvantage-program-consolidated.html)

Dadaluma83 Jan 15, 2015 10:01 am

I don't care anymore as I have already hedged my bets and use the Barclay Arrival card. Will cancel my Citi AA card this summer when the AF is due regardless of whatever retention bonus they offer.

My shopping is through the Barclay portal as well, from now on the only airline miles I earn are BIS only. Just don't trust these programs anymore, will redeem my Qantas award as soon as mileage balances are combined and I can get at least business both ways.

I will try to stay on AA if price is comparable, otherwise I will just go with best price and routing and if I happen to have enough miles for an award well then it comes around, but what these airlines have said with these revenue programs is they only care about how much we spend, so fine, I will make price my only factor as well.

Wonder if this will be a net loss for the airlines if people suddenly see co branded cards as not worth the effort anymore and just go with another card that is unaffiliated? In trying to please high spenders only these airlines might have killed the golden goose revenue stream of banks buying miles.

anaggie Jan 15, 2015 10:42 am

Only TWO guarantees in life -- death and taxes !!

I am sure the AA program will eventually become revenue based. Use it to your best abilities while you can and then adjust as needed.

CPRich Jan 15, 2015 11:17 am


Originally Posted by TENYKS (Post 24168177)
Is there a guarantee that the new AA program(after AA and US programs are fully integrated) will not become revenue-based for reward miles... like UA and DL?

Guarantee? What does that even mean? A refund of your fare if they switch to a revenue program?

sdsearch Jan 15, 2015 12:29 pm


Originally Posted by TENYKS (Post 24171926)
so the consensus it that the new AA will be a fool not to switch to revenue-based miles after the dust settles?

No, the consensus it that new AA will be a fool to not look carefully at switching to revenue-based miles earning after the dust settles.

But since that will be some time from now, they'll have more data about how DL and UA have been doing with it, and also more data about whether them doing it differently than DL and UA has brought them more business.

So what their final decision will be is less certain. But that they'll be considering revenue-based earning is certain.

AA hasn't traditionally copied everything regarding FFPs that the other airlines did*. But then AA of the future is part pre-merger AA and part pre-merger US, so predictions based on the past are harder than ever were.

* Remember, DL and UA went to spend requirements for status before they went to revenue-based mileage earning on flights. AA hasn't even coiped the spend requirement for status yet. But AA had a sort of a spend option all along (Elite-Qualifying Points), while I'm not sure if DL and UA had that (before going to spend requirements for status). Which makes it complicated to predict changes at different airlines when the different airlines come from different starting points.

BearX220 Jan 15, 2015 1:05 pm


Originally Posted by TENYKS (Post 24171926)
so the consensus it that the new AA will be a fool not to switch to revenue-based miles after the dust settles?

Certainly not. Read what people have written. But take all this "it's inevitable" talk with a grain of salt.

It is true that airline managements in the US are not much afflicted by vision or inventiveness and tend to imitate each other. But it is also true that the DL and UA program changes create a big capture opportunity for AA, and AA knows it.


Originally Posted by Often1 (Post 24168365)
All that does is shift low-spend, high frequency fliers from UA & DL to AA, while UA & DL keep the HVC's. A bad deal for AA.

As this poster and most others well know, UA has shed HVFs like crazy since 2012, and not just because of terrible service and reliability. Lots of good customers are shopping their loyalty around. And if the economy tanks, and the remaining majors have to actually campaign for customers, all bets are off.


Originally Posted by Often1
I predict that the 2016 program, 2017 at the latest, will be revenue-based and if AA is smart, more directly related to revenue than UA and DL.

Like William Goldman said about Hollywood, nobody knows anything. If AA goes revenue-based, it's great news for AS, B6, VX, and WN, as a whole middle tier of frequent flyers will likely give up the FF addiction and start actually choosing airlines that are pleasant and convenient to fly. And if AA stands pat it'll pick up that middle tier and give its competitors the kick in the teeth they have coming.

SFO777 Jan 15, 2015 1:07 pm


Originally Posted by anaggie (Post 24172646)
Only TWO guarantees in life -- death and taxes !!

You forgot the third one... crap food on the new AA. ;)

olouie Jan 15, 2015 3:20 pm


Originally Posted by Often1 (Post 24172362)
There are gradations. It's not as though AA or any carrier wants to shed someone who makes them money, perhaps not an HVF but close enough. The question is how much you do for people and what it takes for them to stick around.

FT is a terrible place to sample. Most people who use a FFP simply accumulate miles and then spend them when they can (or not at all). They are glad of an occasional UG, but don't spend time strategizing.

I doubt that a shift to spend-based loses much of anything. And, from the AA perspective, where will those people go?

Well UA will lose my a lot of my flying due to them moving to spend based AND having ...... operations. So not spend based alone, but combo of spend based without any positives to justify it.

I am moving to Delta who has spend base as well, but Delta has much, much, much better operations and trying out AA to see what is is like. Almost 50% of my UA flights this year were delayed. Some due to just the way SFO works weather wise, but a lot were also just bad management and mechanical. I can't remember the last time a Delta flight I was on had a mechanical delay. The 747s UA flies APAC have tons of mechanical delays. At some point its not just spend but operations. If you are travelling for business you need to get places on time. If they cannot even do that then its over.

JMN57 Jan 15, 2015 3:32 pm


Originally Posted by SFO777 (Post 24173573)
You forgot the third one... crap food on the new AA. ;)

Not a guarantee - sometimes they forget to cater ;)

anaggie Jan 15, 2015 3:33 pm


Originally Posted by SFO777 (Post 24173573)
You forgot the third one... crap food on the new AA. ;)

I have had a few hits and misses. Flew to MBJ in Dec and the beef was pretty good but on the way back, the chicken was nothing to write to home about.

Have a flight to MAD next week and I wonder what sort of suprise awaits me !!

JDiver Jan 15, 2015 4:34 pm

Guarantee? Mr. Parker said there'd be no switch to revenue-based this year, iirc.

I can guarantee change of some kind. Remember the April 7 2014 "massacre"?


Originally Posted by AAdvantage Terms and Conditions
You are responsible for reading the AAdvantage Program Terms and Conditions, additional member information, AAdvantage newsletter/s and account summaries online at aa.com in order to understand your rights, responsibilities, and status under the AAdvantage program. American Airlines may amend its rules of the Program at any time without notice.

There's your guarantee, in black and white.

Other than that, speculation. :)

nerdbirdsjc Jan 15, 2015 6:29 pm

AA will almost certainly switch to revenue-based earning, but IMHO the airline will avoid the shortsighted (and JV/partner carrier-hostile) Delta/United models and instead follow the rest of the world's legacies in earnings based on fare booking class.

r415 Jan 15, 2015 7:29 pm


Originally Posted by Often1 (Post 24168365)
All that does is shift low-spend, high frequency fliers from UA & DL to AA, while UA & DL keep the HVC's. A bad deal for AA.

I predict that the 2016 program, 2017 at the latest, will be revenue-based and if AA is smart, more directly related to revenue than UA and DL.

What AA needs to realize (but probably won't), is that many HVCs actually care about things like service, attitude, and all the little touches that make the experience better (all the things that have been eroding at AA/US). That's part of why they're willing to pay higher fares. You can't keep cutting service, food, benefits, etc. unless you are just willing to go after the LVCs who will accept whatever gives them the cheapest fare.

phil_flyer Jan 15, 2015 9:32 pm

It can't happen soon enough for me.

JDiver Jan 15, 2015 9:54 pm


Originally Posted by phil_flyer (Post 24176257)
It can't happen soon enough for me.

They already have a couple of built built in tools: EQP, and the ability to use that to multiply Base miles for various yields.

The 2015 bonus miles program is already rewarding for revenue.

E.g. For EP / EXP /CP:
Code:

                    Class            Long    Short_medium
First/Business            F,A,P,J,R,D,C    12,000  1,000
Discount Business  Z,I                3,500    500
Economy            Any fare          Bupkis

As EP, get all the class of service and status bonus miles, but if you fly a 3,000+ flight in FAPJRDC earn yet another 12,000 bonus RDM; fly like a cheapo in I or Z, only 1,000 bonus miles for you.

So you can spend for the band 4 anytime J MIA-CDG at 950,000 miles. ;)

Dr. HFH Jan 15, 2015 11:08 pm


Originally Posted by JDiver (Post 24176334)
The 2015 bonus miles program is already rewarding for revenue.

E.g. For EP / EXP /CP:
Code:

                    Class            Long    Short_medium
First/Business            F,A,P,J,R,D,C    12,000  1,000
Discount Business  Z,I                3,500    500
Economy            Any fare          Bupkis


This one is spectacular, JD. I just returned from a 72 hour ICN-HKG-DFW-BOS paid F roundtrip (actually business requirement, not an MR, though it could have been) on which 74,366 miles have posted so far, and I'm still awaiting posting for the HKG/ICN segments.


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