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AAdvantage program changes rumored Oct 2021

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AAdvantage program changes rumored Oct 2021

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Old Sep 30, 2021 | 8:56 am
  #31  
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I'm curious whether they're changing the elite earning/qualification metrics or the mileage redemption options - or whether they're really going to go all out and do both at the same time. I guess only time will tell, but you'd have to imagine that there will be more leaks about this as we get closer to the unveiling of whatever it is.
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Old Sep 30, 2021 | 8:57 am
  #32  
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Originally Posted by MarkOK
This is the current. Last time I bought award tickets, the range was between 12,000 miles roundtrip and 50,000 miles roundtrip, with everything in between as options. And the cash price of these options only ranged from like $300-400. Frustrating that the value of AA miles is tied to how much time I have to sift through routings....(and/or accept torture)
Yeah AA started some limited dynamic pricing but if you dont like it now you arent going to like it in the future. At least partner flights still have charts but that will likely go away. The system is designed to make it as hard as possible for flyers to get value out of their miles. 1 cpm is the maximum value they want to give but would love to give much less.

WN has the easiest earring and redemption model, closest to true revenue base Ive seen.
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Old Sep 30, 2021 | 9:00 am
  #33  
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Originally Posted by Mr. BoH
Who caps earnings? Other earning-based programs that I am very familiar with (Southwest, Amtrak) do not cap. I didn't think UA did either, but I am not certain of that.

In theory, they shouldn't need a cap - they are just allocating x% of their revenue back to the awards program.
UA caps partner PQP earning so international flyers get the short end. They also require higher pure points elite status qualification than if you mix with PQF.
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Old Sep 30, 2021 | 9:37 am
  #34  
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Thanks for this nudge, I just booked flights to Japan next summer. Since they can be cancelled with no fees, it seemed a good risk to grab some seats.
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Old Sep 30, 2021 | 9:55 am
  #35  
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Originally Posted by MarkOK
This is the current. Last time I bought award tickets, the range was between 12,000 miles roundtrip and 50,000 miles roundtrip, with everything in between as options. And the cash price of these options only ranged from like $300-400. Frustrating that the value of AA miles is tied to how much time I have to sift through routings....(and/or accept torture)
...and omit those 27 hour 2-stop Award flight options that show when the nonstop you're trying to book is only 4 hours.
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Old Sep 30, 2021 | 10:09 am
  #36  
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Originally Posted by olouie
UA caps partner PQP earning so international flyers get the short end. They also require higher pure points elite status qualification than if you mix with PQF.
Exactly-- we're not just going to see AA saying okay, all you need is 3k EQD for Gold, 6k for Plat, etc... UA's was quite a bit higher than their old revenue requirements under the former system.
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Old Sep 30, 2021 | 10:29 am
  #37  
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Originally Posted by dw
Exactly-- we're not just going to see AA saying okay, all you need is 3k EQD for Gold, 6k for Plat, etc... UA's was quite a bit higher than their old revenue requirements under the former system.
My gut tells me its going to be UA's elite status system combined with DL's dynamic redemptions. I mean why could AA be creative when they can pick the worst of each and combine it into one program? How else will they complain about not being able to compete with other airlines as the main reason why AA is failing haha.
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Old Sep 30, 2021 | 10:34 am
  #38  
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As I see it, the problem with the revenue based programs is that there don't seem to be any barriers to regularly raising the revenue requirements. There seems to be market resistance to raising the mileage requirements, which is why increases were relatively rare. Not so much with spend requirements. From the introduction of the spend requirement over at UA, there has been an approximate 40% increase in the 1K limit from the original total to the Pre-COVID, no PQF total.
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Old Sep 30, 2021 | 10:44 am
  #39  
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Originally Posted by StevenSeagalFan
AA already is saddled with debt, I doubt a lender would back them for an acquisition of this size.
You are looking at this one dimensionally. If AS and shareholders actually want to get together with AA, it does not have to be an "acquisition". The simplest form is a cashless merger which were done by NW+DL, UA+CO, and AA+US where shareholders exchanged their shares for surviving entity shares and assets and liabilities were combined. No additional debt was issued or actual cash traded hands. If AS does not actually want to merge with AA, then no, it probably won't happen as price would likely be too steep for AA at current valuations. The current regulatory environment also does not appear all that friendly for mergers which would also seem to make this unlikely.

Last edited by xliioper; Sep 30, 2021 at 10:54 am
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Old Sep 30, 2021 | 10:51 am
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Originally Posted by Catbert10
As I see it, the problem with the revenue based programs is that there don't seem to be any barriers to regularly raising the revenue requirements. There seems to be market resistance to raising the mileage requirements, which is why increases were relatively rare. Not so much with spend requirements. From the introduction of the spend requirement over at UA, there has been an approximate 40% increase in the 1K limit from the original total to the Pre-COVID, no PQF total.
They will raise it as much as the market will tolerate. All of the talk about loyalty is just marketing at this point. What they want is your $$$ because they airlines are public companies responsible to shareholders. And honestly they probably aren't wrong. Delta has a terrible redemption value but the product and service was solid so business flyers flocked to them. Heck I hated Delta for a long time but precovid they were heads and tails above AA or UA and started getting my money. I left US after years as 1K/GS because of the terrible service, but they have improved so much that I've taken my first UA flights in over 5 years. Flying a plane with seat back IFE, good wifi, and decent food with friendly service really makes going back to AA's "modern" oasis planes pretty hard, but AA had me locked into the loyalty program until AS joined OW. Now for 2022 and beyond I can move anywhere since covid delayed my business flying. Not many benefits to elite status these days with easy award cancellation/refunds, easy changes, etc so if you are flying premium cabin might as well pick the nicest experience and best routes.
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Old Sep 30, 2021 | 11:22 am
  #41  
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Originally Posted by CLTRob
So, if AA follows UA, will MQMs be eliminated as it appears that UA doesnt have such - if Im looking at this correctly. After a quick look at UAs mileage program Elite status, it doesnt appear that credit card spend counts towards Elite status.
If you have the Chase UA Club Infinite Card, you get 500 PQP for every $12,000 of spend on the card. Capped at 3,000 PQP for 2021. Going up to 4,000 PQP cap in 2022. Usable up though 1K for PQP+flights qualification. Usable through Platinum (equivalent to AA PP) for PQP-only qualification.
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Old Sep 30, 2021 | 11:32 am
  #42  
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More devaluations, more reasons to be a free agent. (being NYC based makes that easier as well)
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Old Sep 30, 2021 | 11:47 am
  #43  
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Originally Posted by ty97
Airlines continually make these programs worse for customers, that's an ongoing trend so I'm not surprised.

The reported timing does surprise me though. Now? While travel is still down and business travel decimated?
You are assuming many things here - for some of us, myself included I rarely have more than 48 hours notice to buy a ticket. In the past 3 weeks I have walked into the airport and bought a ticket from the ticket counter 4 times. Try paying $16,000 for a RT to Madrid, I walked into the airport 64 minutes prior to the last flight out to possibly make a connection.

These "New" policies greatly benefit me and people who travel like me......I will agree that probably the majority of the business travel is tilted the other direction, but to say it is bad for customers is disingenuous. You know when you are #1 on the UG list and then that seat gets magically taken - yup - that was me.

As a second data point - when I qualified EXP, I had to spend 36,312 on AA to get enough EQM to make EXP - that is plain stupid and it is why I gave up on AA and stayed with UA (GS doesn't hurt either )
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Old Sep 30, 2021 | 12:13 pm
  #44  
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Originally Posted by Hipplewm
You are assuming many things here - for some of us, myself included I rarely have more than 48 hours notice to buy a ticket. In the past 3 weeks I have walked into the airport and bought a ticket from the ticket counter 4 times. Try paying $16,000 for a RT to Madrid, I walked into the airport 64 minutes prior to the last flight out to possibly make a connection.

These "New" policies greatly benefit me and people who travel like me......I will agree that probably the majority of the business travel is tilted the other direction, but to say it is bad for customers is disingenuous. You know when you are #1 on the UG list and then that seat gets magically taken - yup - that was me.

As a second data point - when I qualified EXP, I had to spend 36,312 on AA to get enough EQM to make EXP - that is plain stupid and it is why I gave up on AA and stayed with UA (GS doesn't hurt either )
The problem with this logic is that AA really doesnt need to care or cater to you on the program. You will buy that ticket no matter what because of schedule and business requirements. However, for 99% of flyers this is not true. I would even argue that for 95%+ of business travellers cost is still a factor. At most companies there are rules around how much a ticket can cost for any flight no matter what without some executive level approvals or C-Suite travel. Thats what airlines FFP are really trying to sway.

And if you have to buy that $16,000 ticket from BA instead of AA you will likely be capped in your elite status qualification earnings (just like UA with partners).
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Old Sep 30, 2021 | 12:23 pm
  #45  
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Could be good for me depending on how they handle flights purchased on partner airlines. With AA offering an inferior in-flight product at the moment, flying partners is more appealing than ever. As long as someone buying at least 4-5 international J tickets per year can earn EXP, it will be fine for me.
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