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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 27, 2016, 8:42 pm
  #1216  
 
Join Date: Sep 2008
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Originally Posted by transportbiz
Which is the very definition of short sighted.
Which is the very definition of how most airlines have operated in modern history...

Regards
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Old Jun 28, 2016, 4:28 am
  #1217  
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Originally Posted by scubadu
Which is the very definition of how most airlines have operated in modern history...

Regards
Which is why they've never been consistently successful businesses since deregulation, all requiring one, sometimes two bankruptcies in order to stay alive.
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Old Jun 28, 2016, 6:28 am
  #1218  
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Originally Posted by cmd320
Which is why they've never been consistently successful businesses since deregulation, all requiring one, sometimes two bankruptcies in order to stay alive.
You guys have lost me with your circular logic. If the airlines have been operating to satisfy investors (isn't that kind of the point of a public company?), how is that accomplished by declaring bankruptcy? At any rate, this discussion has gotten pretty far removed from the FF programs (the previous iterations of which, didn't manage to save the the airlines from bankruptcy).
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Old Jun 28, 2016, 7:09 am
  #1219  
 
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Originally Posted by cmd320
Which is why they've never been consistently successful businesses since deregulation, all requiring one, sometimes two bankruptcies in order to stay alive.
And yet, that is the world we actually live in and discussing it endlessly on an anonymous travel forum, with armchair quarterbacks, will in no way, shape, or form change that.

I can do this all day...

Regards
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Old Jun 28, 2016, 1:32 pm
  #1220  
 
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Originally Posted by cmd320
Which is why they've never been consistently successful businesses since deregulation, all requiring one, sometimes two bankruptcies in order to stay alive.
Except two airlines (neither of which operate widebody jets) which have been around for more than 40 years with no bankruptcies. (I guess WN isn't quite as clean as they used to be, since they now have Valujet's bankruptcy in their corporate history, but close enough).
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Old Jun 28, 2016, 1:48 pm
  #1221  
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Let's stay on topic, folks.

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Old Jun 29, 2016, 1:51 pm
  #1222  
 
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I just got a survey from Citibank asking me, among a few other questions, what I thought about AA. One wonders whether they are negotiating with AA about the EQD issue and whether they are trying to gauge reactions from cardholders about the new program.
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Old Jun 29, 2016, 3:10 pm
  #1223  
 
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Originally Posted by ckendall
I just got a survey from Citibank asking me, among a few other questions, what I thought about AA. One wonders whether they are negotiating with AA about the EQD issue and whether they are trying to gauge reactions from cardholders about the new program.
Between my wife and I, we cancelled several Citi cards and downgraded to the no fee Barclay card. I am pretty sure that if enough people are doing it, a survey will happen to find out what is driving the cancellations.

In some way, the airlines killing the programs will benefit the banks who have a solid transferable point currency. I am using Chase UR but am considering adding Amex...
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Old Jun 30, 2016, 9:08 am
  #1224  
 
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Originally Posted by scubadu
And yet, that is the world we actually live in and discussing it endlessly on an anonymous travel forum, with armchair quarterbacks, will in no way, shape, or form change that.

I can do this all day...

Regards
I'm glad for you, I can't. The point is lost on so many that of course all companies are run for the purpose of profit, even non-profit companies. The debate is how do you provide shareholder ROI, with emphasis on short-term or long-term?

AA had the opportunity to run their airline their way, rather than carbon copy the others out of pressure from short-term investors.

Smart business' look at their OWN business, determine a strategy their customers and employees will reward them for, providing long-term sustainability.
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Old Jun 30, 2016, 9:22 am
  #1225  
 
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Originally Posted by transportbiz
I'm glad for you, I can't. The point is lost on so many that of course all companies are run for the purpose of profit, even non-profit companies. The debate is how do you provide shareholder ROI, with emphasis on short-term or long-term?

AA had the opportunity to run their airline their way, rather than carbon copy the others out of pressure from short-term investors.

Smart business' look at their OWN business, determine a strategy their customers and employees will reward them for, providing long-term sustainability.
At the end of the day, AA has made their rewards system fair (just as DL and UA did). You should be rewarded based on the $$ spent at the end of the day. It only makes sense.
jjmoore is offline  
Old Jun 30, 2016, 9:25 am
  #1226  
 
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Originally Posted by jjmoore
At the end of the day, AA has made their rewards system fair (just as DL and UA did). You should be rewarded based on the $$ spent at the end of the day. It only makes sense.
Which of course is entirely a matter of opinion.
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Old Jun 30, 2016, 10:09 am
  #1227  
 
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Originally Posted by rjw242
Which of course is entirely a matter of opinion.
For those that believe customers should be rewarded for their loyalty, let me ask you this: If you were/are a business owner, who would you tend to value (and reward) more? A customer that spends $20,000 while providing a much higher profit margin on a small amount of more expensive (economy class) product, or one that spends $20,000 that provides little to no profit margin on a bulk of cheap (economy class) product?

The old AA system would reward the latter more, which does not make sense if a company were to truly value and reward loyalty. This is not a matter of opinion. It is a matter of logic.
jjmoore is offline  
Old Jun 30, 2016, 10:15 am
  #1228  
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Originally Posted by jjmoore
For those that believe customers should be rewarded for their loyalty, let me ask you this: If you were/are a business owner, who would you tend to value (and reward) more? A customer that spends $20,000 while providing a much higher profit margin on a small amount of more expensive (economy class) product, or one that spends $20,000 that provides little to no profit margin on a bulk of cheap (economy class) product? The old AA system would reward the latter more, which does not make sense if a company were to truly value and reward loyalty. This is not a matter of opinion. It is a matter of logic.
How about if that customer now spends $0 because you have no longer have a superior loyalty program to offset an inferior product?
SFO777 is offline  
Old Jun 30, 2016, 10:20 am
  #1229  
 
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Originally Posted by jjmoore
The old AA system would reward the latter more, which does not make sense if a company were to truly value and reward loyalty. This is not a matter of opinion. It is a matter of logic.
Actually, there are many opinions on this, including yours. Declaring your opinion to be objective logic doesn't make it so, unless you have concrete data to back it up (and if you did, you wouldn't be able to post about it here )
rjw242 is offline  
Old Jun 30, 2016, 10:20 am
  #1230  
 
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Originally Posted by SFO777
How about if that customer now spends $0 because you have no longer have a superior loyalty program to offset an inferior product?
Agree to some extent... but at the same time, if a HVF that feels slighted because he/she is not receiving as many loyalty benefits per $$ spent, and that person jumps to another airline that does reward that loyalty, I would say the airline will suffer more losing a HVF than if someone that provides a very low to nil margin leaves....

I will add that I certainly enjoyed the days of earning a TON of RDM's spending very little $ on UA pre-2015 before I took the big travel position that I have now.

Originally Posted by rjw242
Actually, there are many opinions on this, including yours. Declaring your opinion to be objective logic doesn't make it so, unless you have concrete data to back it up (and if you did, you wouldn't be able to post about it here )
I will give you that one.... I don't know for certain... just what my gut tells me.
jjmoore is offline  


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