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-   American Airlines | AAdvantage (https://www.flyertalk.com/forum/american-airlines-aadvantage-733/)
-   -   Dynamic AAdvantage Award / Drastically High Pricing (master thread) (https://www.flyertalk.com/forum/american-airlines-aadvantage/2000290-dynamic-aadvantage-award-drastically-high-pricing-master-thread.html)

xliioper Dec 18, 2019 10:11 am


Originally Posted by ricohitman (Post 31852798)
You haven't been following the accounts restricted thread have you? This is nothing compared to what's going on.


Nothing compared? Well, I suppose form the extreme MS/churner perspective. For the sizable contingent here that does not engage in such activity and are at zero risk, I'd suggest this topic is quite a bit more important and relevant.

Fraser Dec 18, 2019 10:15 am


Originally Posted by MikeShores (Post 31852790)
This probably is the wrong thread, but to follow-up, BA is replacing 777 and 747 equipment on some North American routes with the A350 which is eliminating F from some markets. This could be the reason you're seeing no F availability.

Which isn't all bad....
1) A350 J isn't far off the current F product....it's B/E Super Diamond with a door
2) BA guarantee at least two CW award seats on every flight.
3) Less miles needed for J, obviously

AA100k Dec 18, 2019 10:27 am

Just waiting for the other shoe to drop with partner airline awards. More than the shocking spike in mileage award price is the notion that anyone would pay 400,000 for a one way ride across the ocean on AA in Business Class.

bchandler02 Dec 18, 2019 11:30 am


Originally Posted by donotblink (Post 31852623)
I wonder if this will reduce spending on the Barclays and Citi co-branded cards. Somehow I have a feeling Doug Parker is going to lose money again, because that revenue is what's keeping AA afloat!

It damn sure will. If awards are going to be this much more expensive, it's no longer worth playing the game unless you are EXP and have tons of trips * EXP multiplier. Anyone else will simply never rack up enough miles to be of value.

CSR card is looking better and better every day!

donotblink Dec 18, 2019 11:44 am


Originally Posted by bchandler02 (Post 31853375)
It damn sure will. If awards are going to be this much more expensive, it's no longer worth playing the game unless you are EXP and have tons of trips * EXP multiplier. Anyone else will simply never rack up enough miles to be of value.

CSR card is looking better and better every day!

If you don’t mind shelling out a few hundred bucks 25,000 miles and the $350 copay for a mileage upgrade can still be a good use of miles, until it goes to Y->W->J and you can’t buy a cheap O fare and find yourself in J!

t18c97 Dec 18, 2019 12:55 pm

Can only get to LHR from AUS via BOS using miles?
 
Even though BA has a non-stop from AUS to LHR if I look to use AA saver miles for a trip in J every result looking at 6/20 through 9/20 and 1/20 and 2/20 go through BOS. I even tried looking at a DFW to LHR in J and again it only came up with a connection via BOS. Is there any logic as to why or is this part of their dynamic pricing and the BOS->LHR route isn't very popular so they want to put butts in the seat?

Stripe Dec 18, 2019 1:19 pm

AUS-BOS nonstops are starting sometime in 2020. Twice a day. No doubt one of them connects to the new BOS-LHR on AA.

MikeShores Dec 18, 2019 1:25 pm

Will this change (or should it) appear on the company's balance sheet? Traditionally, I believe miles in existence have been held as a liability on the balance sheet. Given the 67% devaluation, how are they going to report this when it comes time? Maybe the Securities and Exchange Commission should take a deeper dive into the accounting practices regarding these liabilities.

guv1976 Dec 18, 2019 1:26 pm


Originally Posted by t18c97 (Post 31853648)
Even though BA has a non-stop from AUS to LHR if I look to use AA saver miles for a trip in J every result looking at 6/20 through 9/20 and 1/20 and 2/20 go through BOS. I even tried looking at a DFW to LHR in J and again it only came up with a connection via BOS. Is there any logic as to why or is this part of their dynamic pricing and the BOS->LHR route isn't very popular so they want to put butts in the seat?

BA -- not AA -- determines how many award seats to make available on its flights.

You can certainly choose routings other than AUS-BOS-LHR on AA metal, but only if you are willing to pay AA's AAnytime award rates.

t18c97 Dec 18, 2019 1:31 pm

But NO AA flight shows up from AUS OR DFW even on AA metal if AASaver J award level is selected.

guv1976 Dec 18, 2019 1:36 pm


Originally Posted by t18c97 (Post 31853781)
But NO AA flight shows up from AUS OR DFW even on AA metal if AASaver J award level is selected.

I thought you said that AUS-BOS-LHR shows up on such a search. If that's the case and you don't like the routing, then select AAnytime J to see your other options.

t18c97 Dec 18, 2019 1:45 pm

I did and it’s 300K to 400K.

Zeeb Dec 18, 2019 2:18 pm


Originally Posted by MikeShores (Post 31852605)
Absolutely incredible. Can't say I'm surprised, but 40K for Y (with an overnight in Dallas or Pheonix), 65K for Y, or100K for a R/T J AUS-SJD in the off-season is beyond ridiculous. Before this went "live", it was already live. AUS-MCO during spring break for 4 was 480K. in Y

I don't understand why they can't just assign a value to the miles...1/2 cent, 1 cent, etc. and use them as currency instead of these complex and convoluted redemption schemes. 100 miles = $1. If I find an airfare for $480, that'll be 48,000 miles. Thank you, please drive through. If I want to upfare from Y to J and the difference is $800, that'll be 80,000 miles. It would simplify things, make the mileage-earners more secure in knowing what they're getting, and would eliminate the ridiculous AUS-CLT [overnight in CLT] - PHL [overnight in PHL] - LHR for a "saver" award in J for 160000 miles each way.

The only value left in this program for domestic Y frequent flyers is the status benefits. Outside of that, I would be a free agent...except they are almost always the least expensive out of AUS.

Assigning a value to the miles would kill the credit card miles game. And they make a lot of money selling credit card miles.

xliioper Dec 18, 2019 2:23 pm


Originally Posted by MikeShores (Post 31853766)
Will this change (or should it) appear on the company's balance sheet? Traditionally, I believe miles in existence have been held as a liability on the balance sheet. Given the 67% devaluation, how are they going to report this when it comes time? Maybe the Securities and Exchange Commission should take a deeper dive into the accounting practices regarding these liabilities.

They look at actual settled award redemptions, not the various asking prices as different levels, to estimate liability. There will likely be very few redemptions at the highest levels.

"The estimated selling price of mileage credits is determined using an equivalent ticket value approach, which uses historical data, including award redemption patterns by geographic region and class of service, as well as similar fares as those used to settle award redemptions. The estimated selling price of miles is adjusted for an estimate of miles that will not be redeemed based on historical redemption patterns."

guv1976 Dec 18, 2019 2:28 pm


Originally Posted by t18c97 (Post 31853823)
I did and it’s 300K to 400K.

So those are your choices: AUS-BOS-LHR at the MileSAAver level, or other routings at the 300-400K AAnytime level.

I trust you are aware that AA has no obligation to offer any MileSAAver awards on any particular route, or on any particular day.


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