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ARCHIVE: 2016 AAdvantage Program Changes (formally unannounced, but reliably sourced)

Old Nov 6, 2015, 8:16 am
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Last edit by: JDiver
ARCHIVE: 2016 AAdvantage Program Changes (Consolidated thread)
For the thread on the Nov 17, 2016 official announcement, click HERE

This thread has now been archived in favor of 2016 AAdvantage Program Changes Announced 18 Nov 2015

The speculation thread has been archived to ARCHIVE: Speculation: Future changes to AAdvantage program?

Q. What do we know at this point?

AA announced changes to EQM earning and status benefits in the 2017 status year (status earned in 2016) on Nov 17, 2015. These changes were previewed by member and travelingbetter.com founder JonNYC here and on travelingbetter.com.
  • No minimum spend requirements for AAdvantage elitestatus levels.

  • No changes to EQM / EQS requirements for AAdvantage elite status tiers.

  • All currently published fares on AA continue earning at least 100% EQM. EQP will not be a factor, and "disappear"; EQM will be variable beyond 100%. higher spend rewarded with EQM bonuses. travelingbetter.com says:
  • Full fare First/Business F/J 3 EQMs per mile flown
  • Discount fare First/Business 2 EQMs per mile flown
  • Full fare Y/B 1.5 EQMs per mile flown
  • Discount Main Cabin 1 EQM per mile flown
  • Partner-marketed flights will earn 0, 0.5, 1.0, or 1.5 EQMs, according to the airline partner earning charts. Generally, most discount economy fares earn 0.5 EQMs per mile flown, and all discount and full fare premium economy, business, and first fares earn 1.5 EQMs per mile flown.

  • Status year will reset Jan 31 (2018) for those earning status in C/Y 2016

  • SWU earning for EP will be variable - 4 for 100k EQMs, 2 more at 150k EQMs, and 2 more (8 total) at 200k EQMs.

  • 4 SWU for Concierge Key / CK.

  • SWU still usable on all currently published fares.

  • 500 mile upgrade earning goes to 4 for every 12.5k EQMs (as opposed to current 4 for every 10k base miles) beginning on March 1, 2016, and MTEU year commences 1 Feb to align with new status period

  • No major changes to AAdvantage awards, though some yet unannounced devaluative changes will may be made March 22, 2016 (others than travelingbetter.com)

  • Changes coming later in 2016 regarding earning RDM / Redeemable Miles; earning RDM apparently will be "radically different" according to travelingbetter.com, and likely significantly impact RDM earning on lower fares - "$$ X status" says JonNYC.
  • Per Gary Leff at View From the Wing, here are the new RDM earning levelsą:

    Please note: There are NO additional elite status bonuses.
    ąAward miles will be calculated using the fare purchased less any taxes and fees; flights sold with an AA flight number will include any carrier-imposed surcharges.

Q. When would a change occur?
  • Elite earning and SWU changes above would be effective for 2016 program year (for earning status for 2017)
  • We don't know the exact implementation date for the RDM changes in later 2016.
Sources: travelingbetter.com
Earlier: Mr. Parker stated there would be no changes for 2015.

Mr. Parker said he'd not be averse to using others' ideas if they worked.

28 Sep 2015: AA spokesperson Laura Nedbal to Gary Leff:
"If we were to issue changes like this we would be certain to give plenty of advanced notice."

"More than half to the company’s revenue — and 87 percent of its seats sold — come from passengers who fly American once a year or less" - S Kirby

Recently, President Scott Kirby said he was hoping for “more innovation within the frequent flyer program" (Lucky, http://="http://onemileatatime.board...ges-2016"]here.




AAdvantage program updates
Starting in 2016, we’ll make changes to the American Airlines AAdvantage® program. We’re evolving to build a rewarding program for all members, while giving our best customers access to our best benefits.

These updates will roll out in phases over time. We’ll keep you updated as we implement these changes.
Elite status in 2016
Qualifying structure
Beginning January 1, 2016, elite-qualifying points will be removed from our qualifying structure. Instead, qualification will be determined by Elite Qualifying Miles (EQMs) or Elite Qualifying Segments (EQSs) earned during a calendar year.

The membership year is also changing. Beginning with the 2017 membership year, elite status will be valid through January 31 of the following year.
Qualify for AAdvantage elite status in 2016
EQSs and EQMs
EQMs and EQSs will continue to be earned for eligible travel on American Airlines, oneworld® airlines, Alaska Airlines and American-marketed codeshare flights.

You’ll still earn 1 EQS for each eligible segment you fly.

You’ll continue to earn EQMs based on the airline and booking class purchased. Plus, Full-fare Economy, Business Class or First Class tickets on American-marketed flights will earn EQMs at a higher rate – getting you to elite status faster.

On American-marketed flights:

3 EQMs/mile – Full-fare First or Business
2 EQMs/mile - Discount First or Business
1.5 EQMs/mile – Full-fare Main Cabin
1 EQM/mile - Discount Main Cabin
Learn more about earning EQMs on American
The amount of EQMs you earn on partner airlines will change. Earn rates will vary depending on the airline.

Explore our partner airlines
Earn more EQMs

Also, as a Citi® / AAdvantage® Executive card or AAdvantage® Aviator™ Silver MasterCard® credit cardmember, you’ll still earn 10,000 EQMs after you reach your qualifying spend for the year when you use your eligible AAdvantage credit card.

Learn more about the Citi®/AAdvantage® Executive card
Learn more about the AAdvantage® Aviator™ Silver MasterCard®
Elite-qualifying thresholds
Qualification* Executive Platinum / oneworld® Emerald SM Platinum / oneworld® SapphireSM Gold / oneworld® RubySM
EQMs 100,000 50,000 25,000
EQSs 120 60 30
*At least four of the segments must be flown on American during the qualifying year to receive elite status.
Upgrades
Systemwide upgrades

If you qualify for Executive Platinum status by December 31, 2015, you’ll still earn 8 upgrades to use during your 2016 membership year.

Starting January 1, 2016, Executive Platinum members will receive 4 systemwide upgrades upon qualification or re-qualification, with the ability to earn up to a total of 8 per year.

Earn additional upgrades
Customers can earn up to 4 additional systemwide upgrades; 2 for every 50,000 EQMs earned above 100,000.

500-mile upgrades

Starting March 1, 2016:

Gold and Platinum members will earn four 500-mile upgrades for every 12,500 EQMs earned during the membership year
The price of 500-mile upgrades will increase to $40, online, at the airport and from an American Airlines agent
The price for purchasing 500-mile upgrades with miles will increase to 40,000 miles for 8 upgrades
Award miles
Earning in 2016 and beyond
In the second half of 2016, award miles for travel on American marketed flights will be calculated based on what you pay for your ticket (base fare plus carrier-imposed fees, excluding any government-imposed taxes and fees) and your elite status; the higher your status, the more you’ll earn.

5 miles/U.S. dollar – AAdvantage member
7 miles/U.S. dollar – Gold
8 miles/U.S. dollar – Platinum
11 miles/U.S. dollar – Executive Platinum
Sample calculation
Earn bonus miles

We’ve extended our 2015 AAdvantage bonus miles promotion! Earn more award miles when you fly on a First or Business class ticket on American and select other airlines until the changes to earning award miles go into effect in the second half of 2016.

Learn more about our AAdvantage bonus miles promotion
Award redemption changes
We’re changing existing award levels for award tickets redeemed on March 22, 2016 and beyond. Plus, we’re introducing new MileSAAver® awards as low as 7,500 miles one-way (plus any applicable taxes and carrier-imposed fees) for flights 500 miles or less.

Changes to American award charts
Changes to other airline award charts
Print Wikipost

ARCHIVE: 2016 AAdvantage Program Changes (formally unannounced, but reliably sourced)

Old Nov 5, 2015, 10:59 pm
  #91  
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Originally Posted by kauppias
I think in the long run this could work. Mixed flyers being okay and J/F flyers winning while Y (economy) flyer holding on for life and so on bit time will show. I just hope they add some more benefits for EXPs on international flights or there wont be much reason to fly the extra 50k on OW
Yes, this. Y flyers will also be relatively ok, but with fewer rewards.

And if the SWUs rewards are linear based on eqms, this will be an incentive. The more you keep flying, the more SWUs you earn, unless it is capped somewhere (or you earn way more than you want to use).
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Old Nov 5, 2015, 11:02 pm
  #92  
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Originally Posted by schwimmair
Hey thanks so much, yes, I am currently sitting at 70k miles right now. Are you saying that if I re-qualify for EXP before the end of this year, that we will get 8 SWU's instead of 4 for use from Mar 1, 2016 to Feb, 28th 2017?

Thanks again, I really appreciate it!
Yep, go for it! (I mean assuming it makes sense for ya.)
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Old Nov 5, 2015, 11:02 pm
  #93  
 
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Originally Posted by taxicabnumber
Yep, that's exactly what he's saying. Although it's not Mar 1, 2016 to Feb 28, 2017; it's whenever you earn them until Feb 28, 2017.
Ahhh thanks, learn something new everyday. I am a transplant from US, so all this is still a bit new to me.

Thanks again!
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Old Nov 5, 2015, 11:04 pm
  #94  
 
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Originally Posted by Juanefny
I'm not talking about that. In referring to the yet to be announced new fare class that will supposedly compete with lccs. I have a feeling mr style fares will no longer earn eqms.
You're assuming all low fares previously assigned to the lowest classes will be relegated to this new fare class, which I don't think is correct. They offer different kinds of low fares. It could, though, be the beginning of a shift towards more low fare buckets earning much less. But not right now.
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Old Nov 5, 2015, 11:04 pm
  #95  
 
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Originally Posted by JonNYC
Yep, go for it! (I mean assuming it makes sense for ya.)
Great thanks for your help!
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Old Nov 5, 2015, 11:07 pm
  #96  
 
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Very interested in knowing to what extent do partner awards get butchered.
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Old Nov 5, 2015, 11:10 pm
  #97  
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Originally Posted by Juanefny
I'm not talking about that. In referring to the yet to be announced new fare class that will supposedly compete with lccs. I have a feeling mr style fares will no longer earn eqms.
I think it's more likely that it will earn minimal RDMs, and probably no elite bonus for GLD/PLT/EXP. But based on Jon's comments above, it appears that they will earn 100% EQMs at least in 2016.

Look at how Southwest does it - an unrestricted fare on say DCA-STL earns about 7x as many RDM as their lowest fare bucket, and a Business Select flyer earns 11x. I won't be surprised at all if an EXP flying on a A or P fare earns 5-7x the RDM as (s)he would flying an S fare under the new earning rubric.
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Old Nov 5, 2015, 11:14 pm
  #98  
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Originally Posted by Juanefny
I'm not talking about that. In referring to the yet to be announced new fare class that will supposedly compete with lccs. I have a feeling mr style fares will no longer earn eqms.
I wouldn't worry too much about those. If you've seen how these fares were rolled out at DL, you'd find they're pretty much irrelevant in the grand scheme.

Originally Posted by G-CIVC
If there are no EQPs then I guess as a non-JV partner (CX) PEY flyer I will be gravely hurt
It doesn't seem as though partner earning is a big part of the future of AAdvantage.

Originally Posted by ElmhurstNick
Depends on why they are running.

The folks who are running mostly to acquire RDM at $0.03 or less, and don't do any other kind of revenue travel... it's probably going to be hard for them to sustain this once the RDM changes go into effect. If S earns (speculating) 100% EQM, 25% RDM, and 25% elite bonus RDM) it's pretty darned hard to make a $59 ORD-LAX one-way work to manufacture miles.

The folks who are doing discretionary travel and spending some time at their destination, but are generating trips in the bottom two fare buckets to go from being a 65k flier to a 100k flier, yeah, they may stick around. That group cares less about the RDM, it gets baked into the price threshold for deciding to make the trip. Why do they care less about the RDM? Because there's always an incentive to pay for a revenue trip to get to the EXP threshold. Miles are what you give your kids or siblings or parents, or what you spend when you decide to fall back to PLT/GLD.
No disagreement with that.
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Old Nov 5, 2015, 11:15 pm
  #99  
 
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Any news on the currency promo continuing or will that be dead...? Too bad that promo is not valid on joint venture flights
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Old Nov 5, 2015, 11:18 pm
  #100  
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So its safe to assume that late 2016 we should expect the RDM formula to look something like

EQM x fare basis multiplier x status bonus = RDM?
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Old Nov 5, 2015, 11:22 pm
  #101  
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The new system seems relatively ok overall, let's see what the RDM/redemption side looks like. Good stuff, Jon.
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Old Nov 5, 2015, 11:24 pm
  #102  
 
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Originally Posted by carsnoceans
Very interested in knowing to what extent do partner awards get butchered.
Yes. I figured my days retaining EXP status as a non-frequent business traveler will likely draw to a close, but still sitting on a pile of miles I'm most worried about partner award butchering. Keep your paws off my miles AA! Oh wait, according to the T&C's they're not really mine...
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Old Nov 6, 2015, 12:04 am
  #103  
 
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Originally Posted by ElmhurstNick
Depends on why they are running.

The folks who are running mostly to acquire RDM at $0.03 or less, and don't do any other kind of revenue travel... it's probably going to be hard for them to sustain this once the RDM changes go into effect. If S earns (speculating) 100% EQM, 25% RDM, and 25% elite bonus RDM) it's pretty darned hard to make a $59 ORD-LAX one-way work to manufacture miles.

The folks who are doing discretionary travel and spending some time at their destination, but are generating trips in the bottom two fare buckets to go from being a 65k flier to a 100k flier, yeah, they may stick around. That group cares less about the RDM, it gets baked into the price threshold for deciding to make the trip. Why do they care less about the RDM? Because there's always an incentive to pay for a revenue trip to get to the EXP threshold. Miles are what you give your kids or siblings or parents, or what you spend when you decide to fall back to PLT/GLD.
Then there's the incremental ones like me, who started off running for status challenge because of cheap (non-mistake) fares to far away places I like to visit, then realized the RDM was *really* good, so ran for RDM, then realized I was in spitting distance of ExPlat, which generated pure MR I otherwise wouldn't have even looked for, much less purchased or flown.

I *was* planning requalificaton flights for second half next year, but if the RDM (the main perk for a non-biz flier) is getting axed...
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Old Nov 6, 2015, 12:19 am
  #104  
 
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Originally Posted by JonNYC
EQM will be a refined and more "accurate" version of what EQPs was, ensconcing the recent experiment with rewarding premium fares even more:

New system:

Full fare First/Business F/J 3 EQMs per mile flown
Discount fare First/Business 2 EQMs per mile flown
Full fare Y/B 1.5 EQMs per mile flown
Discount Main Cabin 1 EQM per mile flown


Win/win. With the obvious caveat of if/when they ever lower the "Discount Main Cabin" (or maybe deep discount main cabin) to .5 EQM down the road.
LOVE to see this! This would largely be a return to the PMUS method. In the current system, I had a handful of premium fare purchases throughout the year (a couple transatlantic, and about a half dozen affordable first class purchases). While awarded the EQPs for them in the current AA system, they really did absolutely nothing to help me re-qualify for status as I still had to qualify for EXP EQMs. This is a welcome change and rectifies that. ^
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Old Nov 6, 2015, 12:26 am
  #105  
 
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Originally Posted by JonNYC
Will be all EQMs, solving the problem of a "mixed" flyer where a few premium/full-Y/etc tickets get buried (and therefore unrewarded) under AAdv's current system.
I have all I fares for 2017 so far.

How would this work? I would hit 90k EQP by April in Paid Biz all over.
Now how does EQM compute? 1.5? 100k EQM?

http://www.gcmap.com/mapui?P=lax-jfk...oh-arn-lhr-lax

I am doing this in all paid biz class. Its 44.000 miles. I would typically get 66,000. but now I get 2x??

Every fare bucket is I class, most on Qatar, Finnair, etc. What can I expect now?

Last edited by surftb15; Nov 6, 2015 at 12:33 am
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