SFO_FT

Have to assume that given UA’s recent announcement reducing 2021 elite qualifications by nearly 60% for 1Ks, AA will need to hurry up and announce its new requirements. The previously announced 20% reduction in requirements—along with its massive reduction in international service for West Coast-based pax—makes AA quite uncompetitive for those wanting to remain loyal to AA. Or maybe AA has given up trying to keep LAX, SFO, SJC pax.

enviroian

I couldn't find the link on the UA forum. Interesting if true. So only 40K EQM for UA 1K next year? Wow that's setting the bar pretty low.

Zacnlinc

Maybe this one is related:

https://hub.united.com/2020-11-12-un...648871852.html

Kacee

This is wrong in so many directions, don't even know where to start.

platbrownguy

That's not how it works with UA.

1K for 2021 requires 15,000 PQP (essentially EQD) alone, or 13,500 PQP + 36 PQF (think EQS)... which isn't anywhere near a 60% decrease. There's no EQM analogue for UA. The catch is that if you're already 1K, then you get a 3750 PQP head start for 2021.

enviroian

Yes I get it but my post was basically regarding EQM requirements....UK used to be 100K EQM per year and 60% of that is 40K.

SFO_FT

Here’s the “appx 60% reduction” calculation. YMMV of course.

24,000 PQP: Standard requirement
9,000 PQP: 2021 new requirement (15,000) less free credits given to all 1Ks (3,750) less bonus PQPs (assumed 2,250), based on first 3 at 700/trip) that are given for first 3 trips in 1Q2021
15,000 reduction on 24,000 = 62.5% reduction.

AA announced a 20% reduction in requirements while UA is now requiring only 37.5% of prior requirements. That’s a big difference.

The extra PQP in Q1 is a clever way to lock in elite-chasing pax for the calendar year.

econ

And an even greater reduction if one achieves the 36 PQF threshold (would drop the PQP requirement by another 1,500).

VFR

AA is usually quite aggressive at trying to sell folks elite status, a carryover from US Airways where you could outright buy Chairman's Preferred. They have already started selling folks status this year. Announcing lowered thresholds when they are doing that makes people less likely to buy status, which is immediate cashflow.

Vasu Raja said in an interview they are willing to tweak the status levels if the pandemic situation changes, which seems likely. I think we are likely to see more things to incentivize incremental business (e.g. double EQMs, status matches) than lowering the status thresholds, but if they notice that they are losing frequent flyers to UA, they will make an adjustment.

SFO_FT

AA can’t wait much longer to announce how they’re going to respond to UA’s reduced qualifications. Unless AA announces NOW double credits for ALL of 2021, they’ll lose out on attracting/maintaining their loyalty ranks. Waiting until after the new year has started is essentially too late. And in the absence of their confirming/announcing how AA elites will be treated on AS and B6 flights, they’re further risking migration to other frequent flyer programs by us West Coast pax. I’d be surprised if many customers make use of this year’s buy-up status purchases given status was extended free of charge through Jan22–these buy-up promos would be for increasing one’s status through Jan22 while qualification flying in 2021 (ie, the period when the carriers have promoted reduced thresholds) provides status through Jan23.

Kacee

I'm not sure it's that dire, or that AA necessarily wants EXPs who are just chasing the lowest qualification standards every year.

Nine consecutive year 1K here who switched to AA last year and has requalified for EXP for 2021. The reasons I switched haven't changed. No intention of going back to UA, despite the lowered qualification standards.

SFO_FT

Makes sense. Each person has a personal tipping point for pursuing status. Given the $ spend requirements now in place, and the opportunity costs of losing some of “their best customers,” any business would be foolish to let a formerly loyal customer migrate to a competitor if the costs of retaining them are so low. Given the low load factors expected over the next 6+ months, I’ll be really surprised if AA wants or allows their elite tiers to thin (they make $ from them not just by flying, but now more than ever from credit cards). Given AA has historically been the most aggressive amongst US majors in ensuring elite retention through the now annual buy-back schemes, that strategy bodes well for thinking they’ll soon announce revised requalification guidelines.

econ

They just announced their new requirements only last month. I don't think any airline wants to fall into a pattern of revising their elite requirements month to month.

As it was mentioned above, I could also see them doing promos in the short-term to incentivize business. In a sense, they've already begun doing that with 4Q 2020 travel also counting towards next year.

GaryZ

I believe the really smart people have already figured out that status has very little use anymore. Like the wise sages on here - I just buy FC whenever if need it from whichever airline has it!

AsiaTravel2019

Former 1K here that switched to AA this year and just requalified for 2021 for EXP.

Kirby is making some moves with UA, including restoring service to JFK. The problem for me with UA is their soft product. People complain about AA, but you if want a lot of bad attitudes, high prices and less hub options, UA is the airline. UA also did things like take the showers out of their United Clubs (except Polaris.)