mia

Agreed, but AA could back away if they experience a revenue loss or capacity problems.

studentbecometeacher

AA could probably back away, but we'd need to see the contractual language, right?

AA may think that it's more important for passengers to fly its airline rather than losing money off of lounge access membership as those who are non-AA flyers may switch over. Maybe AMEX showed AA figures of what kind of money Delta/NW/CO gets? Maybe AA gives Cent holders at least AA gold level in a year's time?

COSTS:
1) If you're a frequent flyer with AA, then you may buy the lounge access with AA. Now, because of the Plat/Cent, you don't renew the AA lounge access.
2) Going to get more crowded in the lounges and people may complain to AA.
3) Because of both 1) and 2), AA frequent flyers go to the dark side and fly with United.

BENEFITS:
1) You're not a frequent flyer with AA. You switch to AA for part of your flying because now AMEX holders have AA lounge access.
2) Fees received by AA from AMEXholders using the lounge.

Interesting to see how it plays out..

awake

Frankly it seems that the airlines seem to be more interested in packing the lounges and getting the revenue associated with lounge participation in AMEX or Priority Pass. Recently

1. AA joined the AMEX program
2. CO expanded its participation in Priority Pass
3. DL added all of its louges to Priority Pass and discontinued free access for DL Platinum

#2 and #3 occurred simultaneous to the rollout of Priority Pass to all World Elite MC, Citi Chairman Card, BofA Accolades Card, and Citi Platinum AMEX. This had to increase the number of Priority Pass card holder dramatically.

Based upon these factors, it seems plausible to me that the airlines are making more revenue because:

a. AMEX card-holders are orobably more loyal to the airlines that participate. (This probably is an effective way to fight the discount airlines.)
b. AMEX card-holders may be willing to pay higher fares.
b. Airlines probably still make a profit on the club usage.
c. There may be a high % of AA club members that will still keep or purchase an AA membership.

budugu

I think the a, b are very true. I usually fly a lot of US (and UA), but since i got the Co presidents club membership, i prefer to use DL or at times use another airline where the connections allowed me access to one of the lounges (like flying UA/JB and using NWA/CO club in BOS/IAD/ORD/denver etc, which are arguably the best lounges) or the other. Now that i may not renew my club membership, even more so. This will definitely give me more incentive to take a look at AA (which i never preferred even at same price) because they are usually in a seperate terminal in most airports. In the times when 60-70% of the flights are delayed (if not cancelled) ... i was able to extract more than worth of my CO membership (assuming a 25$ per visit cost)! That is not flying CO once...! I wish atleast US would join the Amex program! That will be the best bonus!

Bostom

I hear what you're saying but view your points somewhat differently

COSTS:

1: If you're a frequent flyer with AA... You more often than not buy the AC membership with miles. To maintain EXP status, you earn at least 200,000 miles a year; 300,000 miles annually is more likely (given the c-o-s bonuses, incentive bonuses, rent-a-car and hotel and flower and shopping and credit card offers, etc.; half these at a minimum, and probably more, for PLT's) and the last thing someone who flies 10k miles a month wants is more airplane tickets, especially when the AC membership is a blip compared to the miles earned. Thus apart from an internal accounting loss (of the cost of the miles) American's not losing any real money from many AA elites: we're there because we fly AA. A lot. And we still do. We bought our way in, not by buying an expensive credit card, but instead w/ miles earned by the seat of our pants.

And it's a card you just can't buy: Amex has screens (income and other demographic data, payment history, past useage) that prevent them from handing a card to everyone who hands them $450 for the fee.

2: Going to get more crowded in the lounges and people may complain to AA. Maybe, maybe not. In my experience, O'Hare is usually crowded already, worse on bad ops days. LAX has been bad, especially at night, but when the new Tom Bradley International Terminal is completed, that'll change as the lounges there reopen. SFO is busy in the morning, otherwise not bad, at least in my experience. BOS likewise and MIA seems wide-open when I'm there but I'm not there all that much.

I'm just not convinced there are hundreds of thousands of Amex Plats who'll show up at the doors of the 40 Admiral's Clubs tomorrow but if they do, they'll all be AA ticket holders. Were they yesterday? Some of the smaller, perhaps marginal clubs due to limited traffic (Denver comes to mind as doing a great job w/o a huge presence there) might find themselves a bit more secure with the extra business.

3: Because of both 1 and 2, AA frequent flyers go to the dark side and fly with United. C'mon...they'll fly UA if it's a better product onboard (most arguably not), offers better service operationally (again, it varies by market, but arguably not), goes where they want (in which case, why aren't they already flying UA? The lounges? Nah...) and of course, their corporate travel office masters will say "Oh, please, sure, let us renegotiate our discounts"...Again, nah.) Then there's alliances, loyalty, hefty mileage balances to maintain or use, new status to be earned...There'll be some movement, but not a tsunami.

Moving to the other side of the ledger:

BENEFITS:

1: You're not a frequent flyer with AA. You switch to AA for part of your flying because now AMEX holders have AA lounge access. Maybe, but as above, maybe not; and not for free Admiral's Club lounge access only, meaning the stampede is more like a trickle...

2: Fees received by AA from AMEXholders using the lounge...could, at least in theory and in conjunction with all the new revenue they'd be earning from conquest ticket sales, prompt AA to improve the capacity, staffing, and benefits of the Admiral's Clubs if they find the additional business you're expecting as a consequence of letting all those Amex Plats in who're now flying (and buying) AA tix warrants same.

I have been an Admiral's Club member since T-Way went kaput (and had been a TWA Ambassador Club member for years even though it was then an Amex platinum bennie) and am undecided if it's worth dropping my membership in favor of letting AMEX buzz me through the door. Time (and the thoughts of the lovely and helpful staff at the Logan Admirals Club as to the merits and demerits of a change) will guide my thinking as I have until December to renew with the AC. As well, I anticipate plenty of experience flying this Fall (8 transcons in September and October alone) and will see how flashing the silver Amex card in lieu of the Black Admiral's Club ID is received.

From Amex's perspective, this is a change that makes me think it might be worthwhile to keep paying them $450 a year as the value of their perks has - for me - steadily declined over the years as the annual price rose. We go on a lot of cruises and find the onboard credits and upgrades much harder to obtain than was the case 10 years ago. The two-for-one airplane tix are no draw for us: the domestic tix are high-priced and severely restricted; the international 2 for 1 plan is based on full F and biz fares and I can almost always do better for cash and way better for miles or even via cash and miles or eVIP's. The AX Hotel and Resort program is similarly based on damn near rack rates and an afternoon tea is not usually sufficent to offset the much higher room rates. And the "elite" status AMEX offers in SPG's program is dross: SPG gold gets you maybe an apple from a bowl by the elevators and sometimes comped bottled water in your room. SPG Platinum is what gives you Starwood juice: suite upgrades, guaranteed availability, club floor access, and real recognition. And requires 25 stays or 50 nights a year to earn and keep. Likewise the car programs - nice enough as they go, but nothing anyone off the street couldn't get for free either, whereas a program like AvisFirst, which must be earned, is well worth the qualifications (15 rentals/35 nights per year) because the rewards (reserve a Malibu, drive off in a Buick Lucerne or Chrysler 300, or best of all, a T-Bird or Crossfire) make it worth working to earn and keep.

Obviously, my perspective varies but it's funny to see how using the same set of assumptions can elicit entirely different conclusions. I don't know that I'm right and you're wrong - time will tell - but I don't think the sky is about to begin falling as a consequence of letting some (relatively) few, new, high-net-worth (or at least, Experian scoring) largely business-travel frequent flyers clutching (once again, relatively high-buck) AA tix through the AC doors.

DrivingRain

The AA bene add is nice, but after flying F SFO-JFK on Virgin America last night I certainly hope we get an agreement locked in with them soon. It's a very good product (and certainly not an LCC in any way, shape or form). Given the somewhat cozy relationship with Virgin Atlantic, perhaps that will happen...

Xyzzy

FWIW, Amex just sent an email blast to customers about this:

PlatHunter

Just got this email stating that they are adding the AA Admirals Club Lounge. Always nice to see additional benefits being added and I hope they don't get rid of any existing club access.

Here is a copy of the email:

We are pleased to expand your Platinum Card® portfolio of premium travel benefits with our newest Airport Club Access partner, American Airlines.(1)



Find a pre-flight retreat at partner Admirals Club(R) lounges each time you fly on American Airlines. Work and rest while enjoying refreshments, high-speed internet access, and private meeting rooms, available for reservation.

Present your Platinum Card, along with your American Airlines same-day boarding pass and government-issued ID, and you will enjoy immediate access to the signature amenities of Admirals Club locations in major airports around the world.(2) Complimentary access is also extended to your accompanying spouse and children (under age 21) or two travel companions.

zrs70

Thanks for the heads up!

http://www.flyertalk.com/forum/showthread.php?t=725218

kennycrudup

Cool. ... and it's going to have the effect AmEx/AA wanted as well- I'll start looking at AA now. Since getting the Plat, I've switched from US/UA to SkyTeam* 'cause having lounge access available means I can reliably get work done at the airport, so I can get there well before flight times, mitigating the fact that post-9/11 I really dislike flying.




* - but the ... "interesting" trip I just took in paid F on NW this last weekend gives me pause about them; I'll have to post over in the NW forum and see if this was par for the course over there.

NickP 1K

Looks like I won't be renewing my Admirals Club membership.

I wonder how much this will hurt the AC's - Will the fee Amex pays offset it enough. Translation: Is this here to stay? Or will some bean counter in Dallas kill it after some time.

FogCityTraveler

hhmmm... haven't seen anyone comment on the business case from Amex's PoV.

The Platinum and Centurian Cards have huge loyal followings. Obviously not privy to the pricing of the deal. However, the new program helps them build an even larger loyal base in NYC, Chicago, Los Angeles, Miami, Dallas, San Francisco, and Boston-- with flyers who are not loyal of DL, NW, and CO.

kennycrudup

Wow. Went to update my information on AA, and found out to my dismay I had > 48K AAdvantage Miles that I had forgotten I'd even had and had expired in 2003 due to inactivity.

mia

Get thee a Yodlee MoneyCenter account

http://corporate.yodlee.com/moneycenter/PFM_demo.htm

havetoshop

I wonder if they will add that you can convert MR to Advantage miles?
Crossing my fingers!