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REACTION, DISCUSSION: EQD, status tier, upgrade changes as of 6 Jun 2016

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View Poll Results: The AAdvantage changes announced 6 Jun 2016 will
incentivize me to fly AA more, as I benefit overall
27
3.55%
cause me to buy premium over discount AA fares
26
3.42%
not impact my travel on AA in the balance
128
16.82%
make me choose AA or a competitor, depending on itinerary
181
23.78%
make me become an independent agent
221
29.04%
cause me to join another airline's FF program
178
23.39%
Voters: 761. You may not vote on this poll

Old Jun 6, 2016, 10:31 am
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: JDiver
AAdvantage Changes Announced 6 Jun 2016 - REACTION, DISCUSSION

This thread is dedicated to "REACTION, DISCUSSION" of the changes announced June 6, 2016.

For "JUST THE FACTS", please use JUST THE FACTS: EQD, status tier, upgrade changes as of 6 Jun 2016


Link to AAdvantage Program Updates page on aa.com.

Link to Gary Leff's "View from the Wing" blog article on these changes.

Link to Ben "Lucky" Schlappig's take in "One Mile at a Time" on View From the Boarding Area

Summary of changes:

aa.com: Unknown but intended: aa.com updated to show EQM, EQD and RDM/AW for your convenience when booking and in your account for keeping informed about your accruals.
Aug 2016:

Change to earning Award / Redeemable Miles to revenue based begins (see FT thread)

Bonus award miles "More Miles" for premium cabin discontinued

For travel beginning August 1, 2016

Earn award miles based on your ticket price and elite status on American-marketed flights.

You earn miles on the base fare plus carrier-imposed fees minus government-imposed taxes and fees. The more you spend (and the higher your elite status level) the more you’ll earn.
  • AAdvantage® member – 5 miles for every U.S. dollar
  • Gold member – 7 miles for every U.S. dollar (40% bonus)
  • Platinum member – 8 miles for every U.S. dollar (60% bonus)
  • Platinum Pro - 9 miles for every U.S. dollar
  • Executive Platinum member – 11 miles for every U.S. dollar (120% bonus)
On most flights marketed by partner airlines, you'll earn award miles based on a percentage of the flight distance and the fare class of your ticket. Rates will be available by July 15.

NOTE: this also pertains to "special fares", such as those purchased through AA Vacations. (not AA language)

1 Jan 2017:

Status earning to have EQM/EQS criteria AND "EQD" revenue spend requirement

In addition to the (same as 2016) required EQM or EQS, to earn status one will have to also earn "Elite Qualifying Dollars" / "EQD" spend credit as follows (during the calendar year):

"EQDs will be awarded based on:

Ticket price (base fare plus carrier-imposed fees, excluding any government-imposed taxes and fees) on American-marketed flights

EQD calculations will not include change fees and similar (premium seats, baggage, etc.) charges.

Q. Do checked bag fees, seat purchases, 500-mile upgrades or other products/service fees count toward earning award miles and EQDs?

No, only the base fare paid for your ticket including any carrier-imposed fees will count toward earning award miles and EQDs. Fees for other products or services will not be awarded miles or EQDs, including but not limited to the following: checked baggage fees, Admirals Club® memberships, Wi-Fi passes, in-flight food and beverage purchases, in-flight entertainment, unaccompanied minor fees, pet travel fees, 500-mile upgrades, mileage upgrade cash co-payments, Mileage Multiplier, BuyMiles, GiftMiles, ShareMiles or other mileage purchases, ticket change fees, ticketing fees, same-day confirmed flight change or standby fees and service charges. (Thanks to ty97.)
Flights marketed by oneworld® carriers and Alaska Airlines will earn EQDs based on a percentage of the flight distance and the fare class purchased (as may "special fares" - not AA language)

NOTE: EQD offset may be earned by spend on Barclaycard AAdvantage Aviator Red and Silver cards (added language not from AA)

With the addition of EQDs, we’ll remove the rule that 4 segments must be traveled on American or American Eagle during the qualifying year to receive elite status."
New EQD requirement
  • Gold - $3,000
  • Platinum - $6,000
  • Platinum Pro - $9,000 (beginning 1/1/17)
  • Executive Platinum - $12,000
Elimination of four AA marketed EQS requirement

NOTE: Concierge Key is treated as a higher status tier than Executive Platinum for upgrade Priority, but is not otherwise an AAdvantage status tier.

Change from three status tiers to four - new 75K "Platinum Pro" added

"In 2017 you can start earning toward a new level, Platinum Pro, with benefits like:
  • Complimentary upgrades on flights in 500-mile upgrade markets
  • Earn 9 award miles/U.S. dollar (80% bonus)
  • 2 free checked bags
  • oneworld® Sapphire status
  • 72 hour upgrade window
NOTE: Platinum upgrade window goes from 72 to 48 hours; Concierge Key upgrade window is 120 hours.


February 2017

Introduction of highly restricted AA Basic Economy fares. FT link.

These will accrue 0.5 EQM, 0.5 EQS, will not permit rollaboard size / overhead baggage (only one personal item) unless you have status, no upgrades permitted, etc.


"Late" 2017:

Change to upgrade priority to EQD-based priority

"The way your upgrade request is prioritized will change later in 2017. You’ll be listed according to your elite status level followed by the number of EQDs earned in the last 12 months."
EP, and within EP by EQD spend in last 12 month period; PlatPro, ditto, and on to Platinum, Gold. For both upgrade request and airport list if request goes to airport list.

Executive Platinums able to upgrade MC / coach award flight (On flights 500 mile upgrades are usable, courtesy upgrades; priority within EP by last 12 month EQD spend).

"Starting later in 2017, Executive Platinum members can use their complimentary 500-mile upgrade benefits on AAdvantage® award tickets for travel on American from Main Cabin to the next class."

Peripheral issues:

AA Vacations: AA Vacations packages (like partner airline tickets) will earn EQD, EQM, and RDM/AW based on the distance flown as determined by the fare class purchased. This is in accordance with the "Special Fares" section of the new EQD earnings pages, and confirmed here

EQD requirements will apply to non-US residents as well as US as currently exists

EQD requirements can be partially offset by spend on Barclaycard AAdvantage Aviator Red or Silver cards.

Partners (AS and oneworld): accrual of EQM as reflected on charts on aa.com; EQD credit to be announced (15 Jul 2016)

Status: AA has no current plans to add "Lifetime Platinum Pro" status.


Resources:

GLOSSARY:

EQD: Elite Qualifying Dollars (base fare + carrier imposed fees, - government imposed taxes and fees)

EQM: Elite Qualifying Miles (accrual depends on fare basis, airline and miles flown)

EQS: Elite Qualifying Segments (discrete qualifying segment credited by AA)

Platinum Pro: new tier beginning 1/1/17 requiring $9,000 EQD and 75,000 EQM or 90 EQS in one calendar year

For links to new threads about these and other recent changes affecting AA flyers, see below.

Link to AAdvantage Program Updates page on aa.com.

Link to Gary Leff's "View from the Wing" blog article on these changes.

Link to Ben "Lucky" Schlappig's take in "One Mile at a Time" on View From the Boarding Area

Link to Andy's take on the Award Miles earning changes on View From the Boarding Area.

Links to useful threads:

GUIDE: Earning EQD / Elite Qualifying Dollars on AA and partner airlines (2017 on)

GUIDE: Earning AA Elite Qualifying Miles / EQM on AA, oneworld, partner airlines 2017

GUIDE: Earning AA Award / Redeemable Miles / RDM on AA, partners 1 Aug 2016

HELP DESK: Elite Qualifying EQD, EQM & Award / RDM Calculations & Planning 2017

AAdvantage® earning estimates - FAQ (aa.com)
(aa.com "AAdvantage program updates" - link)

Link to FT thread: What are AA Platinum Pro Benefits? Are they worth it? (master thread)

Link to FT thread: oneworld not requiring connecting protection or interline baggage 1 Jun 2016

Link to ARCHIVE: "Speculation about upcoming changes tba 6 Jun 2016"

Updated 6 Jan 2012 - JDiver


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REACTION, DISCUSSION: EQD, status tier, upgrade changes as of 6 Jun 2016

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Old Jun 9, 2016, 6:53 am
  #766  
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Join Date: Jan 2004
Location: EXT, LHR & ORD
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Posts: 1,613
So what happens if I fly say:
LHR-LAX on 20 July (so still double miles etc etc)
LAX-LHR on 3 Aug - assume RDM but on what fare basis - assuming roundtrip booked
holmedown is offline  
Old Jun 9, 2016, 6:55 am
  #767  
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Originally Posted by holmedown
So what happens if I fly say:
LHR-LAX on 20 July (so still double miles etc etc)
LAX-LHR on 3 Aug - assume RDM but on what fare basis - assuming roundtrip booked
A simple roundtrip will have 2 fare components , one for the outbound and one for the inbound. For the return journey, the value of the inbound portion would be used , I would expect
Dave Noble is offline  
Old Jun 9, 2016, 7:09 am
  #768  
 
Join Date: Jul 2010
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Posts: 3,294
Originally Posted by brp
I agree. We're pure leisure, book months out and can typically find low fares. We are always at the top of the upgrade list (been 2/3 very rarely) if we don't get upgraded in advance. We're 98+%.

While I love the current (soon-to-be-defunct) scheme of request date, the new plan makes more sense.

For at least 2017 we'll stay on this hamster wheel with a higher spend and see what happens. During 2017 I'll be re-evaluating for the 2018 qualifying year.

Cheers.
Originally Posted by Stripe
A double EQM promotion will be useless if the EQD requirement is not also adjusted.


I agree and hope you're right. Without the ability to bypass the EQD requirement with CC spend, 2017 will be my last year as EXP.

I find myself buying more domestic F tickets these days. DL tends to be cheaper than AA, but I usually still choose AA due to the 2X EQM bonus and to maintain status. Take away the AA FF program incentive and throw in DL's more solid operations and it will be very difficult to stay with AA.

I was a DL refugee to AA in 2010 (DM on DL) and back then the draws were better operations, better FF program, and (to be fair) a better schedule. I would not make the same decision today.
Originally Posted by ASULawFlyer
Potentially dumb question ahead: If AA is primarily gearing its reward program toward customers who spend more, why do you still have to meet the miles/segments requirement? For example, if I spend $12k on two business class tickets, then I've made the airline as much (more?) profit than someone who has taken 30 trips to earn the 100,000 miles/$12k requirement. Not only are the J tickets much more profitable in and of themselves, but I also use much fewer AA resources (staff time, etc.) thereby increasing profits even further as compared to someone who flies 30 times a year. It seems the miles and segment requirements will chase off the customers they are really trying to woo: premium fare/high spending customers. Speaking for just myself, let's say I buy F on all domestic flights and J on all international flights. I may spend well more than $12k/year doing this (several times over), but the new system does not incentivize me to routinely choose AA b/c I know I'll never meet the 30 segment 100k BIS mile requirement no matter how much I spend. I don't fly often enough to meet the BIS/segment requirement for ExPlat, but I am a high revenue customer for them. So I may as well just pick the airline that has the best schedule/plane type/cabin quality rather than be loyal to AA. Am I right? As I understand it, this new system is no more attractive to me -- a customer they claim to want badly -- than the old system, except I may earn a few more miles. If anyone can explain to me the benefit to AA of keeping the BIS/segment requirements instead of just spend requirements to me, I'd be much appreciative.
Originally Posted by LINDEGR
Yes, I see the responses but that does not make them dispositive. Bottom line to me is that there is no logic to tracking anything other than spend if the whole point of this mess of a program is to just reward those buying high dollar tickets. EQMs are inherently illogical and unnecessary to that end. To others that worry about benefits for occasional ticket purchasers, there are no meaningful benefits anyway if you rarely travel.
Yeah, I'm really having a hard time figuring out how to keep going at this point. I always thought that the genius of the frequent flyer programs was giving folks with a little access to flying on OPM some incentive to fly a particular airline. The "trick" -- for flyers at least -- was to figure out where the discontinuities or non-linearities kicked in. Thus if I could/can do a certain number of EQMs -- a lot of TATL in Y, at least in the past -- I could price-shop for Y tickets domestically where I might well get an upgrade and could at least guarantee us (or myself) a comfortable exit row seat. But if I am understanding correctly, even that last possibility will soon disappear -- that even if I meet the $12K spend and do the 100,000 EQMs, that there won't be any cheap seats anymore that elites can count on for MCE or the equivalent.

All of which is to say that when the FF program is essentially a small, linearized rebate, the incentive to fly more, and on AA (or anyone else in particular) becomes non-existant.

If anyone throws out a lifeline, I'll be glad to take it. Otherwise, I'm starting to plan the wind-down toward 31 Jan 2018.
Biggie Fries is offline  
Old Jun 9, 2016, 7:36 am
  #769  
 
Join Date: Apr 2011
Location: New York
Programs: AA EXP 1.0mm, not sure where I am with hotels these days
Posts: 2,795
Originally Posted by sayonara
It's difficult to ascertain whether the airlines' hidden agenda is to dump loyalty programs or they have lost perspective of what the programs were originally set to accomplish. I find it difficult to believe that the IRS and corporate compensation committees are going to let the status quo continue - rewarding the wealthy with a tax free benefit that has suddenly become over the top enriching. For example, an executive at EP level who pays $5,000 for a RT Business class ticket will receive 55,000 miles for the trip. Three RTs will equal Business Class to Europe Level 1 Anytime and two RT will earn Business Class Mile Saver. If the executive delays purchasing the ticket, the trip could easily earn 90,000 miles which would equal Business Class Level 2 Anytime after only 2 RTs. My prediction - the ultimate payers will aggressively seek to claim the value generated my these overly rich programs. "Small business" flyers who are passing on the cost will also be impacted. And when that doesn't happen the IRS will change the tax code now that the programs are skewed to shaft the less fortunate. This leaves the airlines vulnerable to class warfare based on all the things done to economy fliers: bag fees, crammed seating and back of the plane seating.

I believe that we all should be more respectful of those riding in coach. (the back of the plane arrives the same time as the front) The new program shows a whole lot of disrespect. Thoughts?
Welcome to FT.

Although you make some good points, your invitation to dialogue with "class warfare" may be better suited for the Omni forum. You may start your journey here by reviewing this among other help features here. ---> http://www.flyertalk.com/forum/ameri...urces-702.html
george 3 is offline  
Old Jun 9, 2016, 7:36 am
  #770  
 
Join Date: Jul 2005
Location: Chicago, IL
Programs: AA EP; WN CP;UA SILVER; MARRIOTT TITANIUM; HH DIAMOND; IHG PLAT; RADISSON PLAT; HYATT GLOBAL
Posts: 1,938
Originally Posted by Alex_I
3) No announcement whether or not EQD waiver will be offered for the Credit Card Spending. Again, why to create another uncertainty?
Am I missing something? A lot of people are speculating that there will be a waiver? Have there been rumors? As far as I can tell, if they have not said anything, it means that there will be no waiver. Can someone please tell me what caused this uncertainty? Thanks
ORD-TGU is offline  
Old Jun 9, 2016, 7:38 am
  #771  
 
Join Date: Jul 2005
Location: Chicago, IL
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Posts: 1,938
Originally Posted by enviroian
"ranks will thin out" statement is useless and not true. I was a 1K last year when UA announced the same devaluation. Nothing changed.
Disagree, I think your comment is not true. I know plenty of people who qualified with dirt cheap fares and became elite. My house is full of these people.
ORD-TGU is offline  
Old Jun 9, 2016, 7:45 am
  #772  
 
Join Date: Jul 2005
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Posts: 1,938
Originally Posted by Fanjet
I know. I was there for that, as well. (CO Platinum and UA Premier Executive at the time of the merger). Gone were the days of being able to seriously milk UA for everything they could. What? You're no longer going to give me a $200 e-voucher because I complained the pilot did not turn on Ch.9 during my flight??? Then there were those who knew that a mileage run on LAX-JFK-SFO could be upgraded using only one e500 upgrade.

It was good while it lasted. And I made great use of the past FF system myself. But I always knew that I was "getting in" through a loophole in the system. And I really can't complain that the loophole is now virtually closed.
As much as I am hurt due to changes, I also feel that I enjoyed the massive generosity of the program. As a leisure flyer that paid out of pocket for all flights, I was able to get massive returns for the last 15 years.

Now flying is just taking me from A to B. I am shifting my attention to hotel programs, which has been revenue based since I can remember.
ORD-TGU is offline  
Old Jun 9, 2016, 8:23 am
  #773  
 
Join Date: Apr 2006
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Posts: 1,646
Originally Posted by Fanjet
Airlines have found a way to be profitable at $100 a barrel for oil.
Do you have proof of that?

I know at least AA doesn't have fuel hedges. I can't see how AA will be profitable with "black gold" @ $100 barrel (just a guess).

$100/barrel would also "hurt" the (global/U.S.) economy (i.e. cause a recession) as well so not only would that increase billions in fuel costs, carriers would start to see less revenue. Not a good combination.

Originally Posted by Fanjet
Moreover, the aircraft in the fleet systems today are much more fuel efficient on average than what existed 10 years.
While that's a true statement, it doesn't necessarily mean carriers would be profitable with "black gold" @ $100 barrel.

Originally Posted by Fanjet
I wouldn't use what happened a decade ago as the blueprint for what will exactly happen again in the future.
Given the current semi-oligopoly, I wouldn't either.
Jacobin777 is offline  
Old Jun 9, 2016, 8:42 am
  #774  
 
Join Date: Feb 2009
Programs: AA 1MM, Hyatt GP Platinum, *wood Gold
Posts: 173
The Plan in 2017

1. No more domestic mileage runs without a multiplier for EQMs and RDMs. All domestic flights will be for a specific purpose at the destination in question, ideally one that is tax deductible.

2. All transatlantic travel will be booked well in advance on BA in WT+ (either on sale or as a paid add-on to a cheap economy fare). I'll also fly in Club World if the price difference is negligible.

3. A long weekend in Buenos Aires at some point.
milehound is offline  
Old Jun 9, 2016, 8:42 am
  #775  
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Originally Posted by nk15
If you want to give up on the big US3 for EQD reasons and don't care much about domestic upgrades, BA Gold and Aegean Gold are reasonable alternatives for top status on OW and *A. You can probably get and keep both relatively cheaply.
Didn't A3's *G easy qualification disappear?

It still may be easier than most, but I heard the golden ticket's over. I haven't followed *A much over the last couple years.
Superguy is offline  
Old Jun 9, 2016, 8:49 am
  #776  
 
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Regarding the poll above, I would suggest another option of simply "fly AA less". I chose "make me choose AA or a competitor, depending on itinerary" but that is not nearly strong enough to represent I will significantly decrease my spend on AA. I am already a member of many other programs so this "cause me to join another airline's FF program" does not really apply. Maybe that is meant to say "move most of my spend to another airline"?
dmodemd is offline  
Old Jun 9, 2016, 8:49 am
  #777  
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Originally Posted by econometrics
I am in the exact same position as you, and evaluating the very same considerations right now. ^
I've been thinking a lot of how I'm actually going to evaluate the decision. I'm thinking I'm going to be making some sort of spreadsheet comparing my options' elite level perks, qualification requirements, network and so forth so I at least have a sound methodology for my decision. I'm still thinking about how I'll compare what's important to me. I'm thinking some sort of point value assigned to each one, but easily modifiable as everyone values perks differently.

I'm not sure when I'll have it done, but if you want, I'll be willing to share it.
Superguy is offline  
Old Jun 9, 2016, 8:58 am
  #778  
brp
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Originally Posted by Superguy
I've been thinking a lot of how I'm actually going to evaluate the decision. I'm thinking I'm going to be making some sort of spreadsheet comparing my options' elite level perks, qualification requirements, network and so forth so I at least have a sound methodology for my decision. I'm still thinking about how I'll compare what's important to me. I'm thinking some sort of point value assigned to each one, but easily modifiable as everyone values perks differently.

I'm not sure when I'll have it done, but if you want, I'll be willing to share it.
I would be interested in this as well. I've made modifications for my AA tracking sheet to include a column for EQD, but I will be able to tweak it more once the partner earning figures are out in July. But that will just look at the implications of AA and various partners on AA status. Yours is a different, and very interesting, dimension for decision-making.

Cheers.
brp is offline  
Old Jun 9, 2016, 9:05 am
  #779  
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Originally Posted by scubadu
Ok, I'll bite, this is the airlines problem, how exactly?

Regards
It's an incentive to kayak. If there's little to no upside for flying like "well, at least I'm earning a good amount of miles for putting up with this crap", then you start looking at other factors. If AA, for example, is going to treat them like crap and has a worse schedule than UA or DL, they can easily opt to be treated like crap for less time (and perhaps, less money) by UA or DL (and vice versa). It becomes a choice amongst who will hurt me the least rather than who will offer me the best for my money?

I may not have been a business major, but in the classes I did take, the general thought seemed to be sticking out from the competition for being the best between good options, not sucking the least of bad ones.

And if it gets too bad, people may just skip flying altogether and opt for things like video conferencing, remote working, etc.

The airlines need both types of flyers. Of course it wants as many full-fare flyers as possible, but let's face it, there aren't nearly enough of them to fill a plane. If there were, they wouldn't need to have multiple fare buckets. Instead Joe Discount Flyer and some others like him may be the difference between a flight losing or making money. At least under the old program, Joe Discount Flyer may not make them as much money, but at least he's consistent and delivers revenue that could be counted on. Now they have to hope that they can consistently fill the seats Joe Discount Flyer bought with bottom feeding Kettles that are very fickle.

At least for me, I'd rather make a consistent $10 off of something I could sell a high percentage of the time than have a <50% chance of making $20 on each sale. Sure, the latter can be good when times are good, but can be devastating when times are bad - or your competitors are cheaper more often.

I guess the airlines have a higher tolerance for gambling than I would.
Superguy is offline  
Old Jun 9, 2016, 9:10 am
  #780  
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Originally Posted by Captain Flush
(Bolding mine.) You raise very good points, but an important missing part of this is that switching to revenue-based earning across the board effectively penalizes business travelers whose employers aren't willing to purchase higher fares. If I work for company A and you work for company B, and my company is willing to buy me full-fare tickets and yours is only willing to buy you the lowest available restricted fare, how is fair to us -- the people whose butts are in the seats -- to give me more perks than you if we both fly the exact same amount? I just don't see it, especially in a world where each of our employers is already receiving points or perks for buying our tickets in the first place.

I think in the long run this system is going to cause exactly the issue you raised, at least among biz travelers who pay attention to loyalty programs. Those whose employers aren't willing to buy unrestricted fares will become less satisfied and less willing to travel as often. IMO this will have the overall effect of decreasing business travel in the long run (because let's not kid ourselves that many employees will successfully lobby their employers to buy higher fares so they can earn more miles). Framing this change as "giving our best customers access to our most exclusive benefits" is thinly veiled spin, when what's actually going on is that benefits are being restricted to those who spend more, and in many (if not most?) cases the people doing the big spending are not the same people receiving those benefits.
The problem is the airlines are giving their best customers less and demanding more. AA expects more out of their EXPs. Ok, fair enough, but what's the trade off? 4 eVIPs instead of 8? Gee, where do I sign up for THAT deal?

Miles are hard enough to use on AA. Paying more for the privilege of earning less of them isn't going to make me want to spend more on AA. If they increase availability, then ok, maybe that's not so bad. But the same crappy availability and being forced onto BA for TATL with their high YQ? Yeah, great deal.

UA may be offering the same screw job on miles, but at least you can actually use them. I've had a much easier time burning UA miles as a Kettle than I have AA miles as an elite.
Superguy is offline  


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