knit-in

Did they also specify how they were looking at partner carriers with regard to dollar spent?

Forgive me if already discussed, but this thread gets longer quicker than I can go through it.

rjw242

If actual cash back from credit cards isn't taxable, why on earth would frequent flyer miles be?

I know people have their weird little fantasies about anyone who benefits from the new scheme getting their comeuppance, but come on.

ukinny2000

They could have at least re-instated stop-overs and removed the hyper-restrictive routing rules in order to take some of the sting off these changes

shoodawg

Today, AA, the final US major to significantly slash the benefits of its frequent flyer program, officially announced the new earn and reward structure.

Even as the airline industry continues to earn profits in the billions, the loyalty, or frequent flyer programs are being gutted.

Which of the following do you think most responsible for the trend in gutting the programs:

a) Lack of loyalty to the airline customer
b) Desire to increase profits
c) Richard Anderson's leadership on the issue, Smisek and Parker sheepishly following
d) Desire to increase program benefits to loyal customers
e) Desire to increase top line sales
f) Industry consolidation
g) Add your own perspective

dw

Actually, based on the changes to partner EQM released today, I don't think we're going to see a minimum spend requirement introduced.

Rather, I predict that AA will achieve the same goal of culling the ranks by, effective Jan 1, 2017, granting discount coach fares on AA marketed flights only 0.5 EQMs. And thus, unlike DL and UA, there won't be a way to get around it with a credit card waiver.

I think that awarding a minimum of 1 EQM per mile flown on AA marketed flights for 2016 is just a way to ease us into this new paradigm that is going to eventually look pretty close to the old EQPs.

captainstubing

Since we all had warning here a couple weeks ago, today's AAnouncement is not quite the shock it would have been. If I put aside all the qualifying and EXP changes (yes, ouch), and just focus on the new chAArt.... Overall it coulda been a lot more horrific. I've enjoyed some great J and F awards thru the years, and oh well, most will be too pricey compared to Y. The Y changes on the chAArt are really not so bad at all...Europe off-peak from 20 to 22.5? Still one of the great values remaining. I'm as dejected as everyone else, but these changes could have been a lot more extreme.

Dave Noble

Because on a personal card, it is personal spend - it is separated from a business reimbursement

Corporate cards which I have had have had no points earning options ( to the cardholder at least )

The US tax office has had a while to look at taxing FF schemes if it had wanted to ( such as UA ir Dl changing ) - wouldn't see this change making much difference

rjw242

Not necessarily. I charge most business expenses to my personal cards.

However, I agree that if FF miles/points were going to be taxed, it would have happened decades ago.

EmAAx

I'm definitely done with loyalty to AA. I'm used to booking on aa.com and skipping checking my options on Kayak. Now I'll just pick the best fare/schedule and pay a little extra to get E+ if it makes sense. This also means I won't be renewing my AC membership.

It will be a hard adjustment, but almost a no brainer considering the downgraded domestic F experience and upgrades clearing less frequently. And AA international J is horrible.

So I will fly a little less (no MRs), will probably end up spending about the same, but will save time and hopefully even get a little bit better experience.

MiamiAirport Formerly NY George

MRs are such a tiny, tiny fraction of elite flyers I doubt that airline management has given them much thought. I do think that airlines are trying to better align rewards given in relation to financial metrics of elites. Certain FFs may not like it but it is where the industry is heading. And with three major global airlines in the US there is not much choice.

carlosdca

Agree with the above


And on the other hand...what is the lifetime of a mileage runner?

Regardless of AAdvantage changes, I was already burned after 5 years and stopped the nonsense.

For how long can one be a mileage runner?

Goin-2-AA

Now it seems they can afford to punish us and they would never miss that chance. Paybacks are ......

arlflyer

g) Disciplined reduction of supply and high load factors, IMO.

Frequent flyer programs made sense back in the "good old days" when Podunk Air was running six DC-10s a day from Akron to Buffalo or whatever and there was a ton of capacity. Loyalty meant a continued revenue stream, and kowtowing to middle-manager road warriors was a necessity. So they dangled the benefits to lock in those 100 discount economy tickets a year, because that was 100 tickets that viably could be lost to a competitor.

Now the airlines have finally wrapped up decades of consolidation and fleet shrinking. Most US flyers who travel domestically have probably never even set foot on a widebody. Those routes are now being done with RJs. Load factors are through the roof. Every flight is jammed. And airlines don't care who it's jammed with. It could be the same middle manager doing 100 segments or 100 different people flying once a year to visit grandma. Who cares.

The back is fixed and the front is marginal, and it's clear that's who they're fighting over. So everyone is pumping up their premium products. And they're selling them - because big data and technology are enabling it through innovative pricing and selling mechanisms. Why give those away if you can get the amount the market will bear, to the very cent? Maybe it's Johnny's big trip to see Grandma, and he's willing to shell out for domestic F at a reasonable increment over Y. Fine with the airlines.

The new MO is - we're gonna fill the back no matter what, and we don't care who's back there. Now, we fight over the big bucks up front.

Now that said, the number one rule of life is everything is cyclical. The next question, then, is - who's gonna flinch? Who's gonna start boosting supply? And, will we end up with an oversupply situation, where the cycle begins anew?

DL2SXM

I will bet you and everyone else on here $50.00 that AA will continue to devalue Advantage in the coming years...A little at a time. Next year will for sure bring more devaluation.

0335th

I'm right there with you! EXP really hasn't been much of a benefit to me for what it took to get it (in my case).

I am fortunate enough that the company I work for lets me book domestic F (not so much on international flights). So I don't ever have to play the upgrade lottery on that. From now on it will be lowest fare and nonstop for deciding factors on what flights I will be taking. Which more times than not will probably still be AA seeing that DFW is home and I still hate SouthWorst.