Rumor: MPC will go way of PPS
#661
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,807
For a moment, I would like to take the viewpoint of the airline. Hong Kong is small relative to its airline. Even if you include the numerous MPC members in China and in the region, the number of members must be quite small relative to BA or AA members. CX desperately needs paid pax from OW on its longhaul network. For example, CX flies 5 daily to LHR (compared to 2 BA daily) and I would bet that there are more paid BA/AA members in CX premium cabins that MPCs.
In my experience there's three categories of traffic. There're are the Australians coming here or proceeding further to China. There are the Mainland Chinese going there. Then there's the HK locals O&D traffic.
In fact Avios can be manufactured in HK now. And lots of us are into it. In fact when I reposted the article into hongkongcard.com there're already posts worrying that CX is seeking to act against the Avios CX redeemers as well as the AA redeemers http://www.hongkongcard.com/forum/fo...w.php?id=14873 #4
It is clear that a lot of posters wish that AA award levels on CX be increased. But that is AA decision (just like BA increased it dramatically for CX premium cabins). The only thing that CX can do is raise the price they charge AA for a given award (probably after lengthy OW negotiations). That might induce AA to raise the number of AA miles required for that award.
But CX has limited maneuver room as it is small compared to AA mammoth. Anything that will make it less attractive for paid pax will impact its bottom line.
But CX has limited maneuver room as it is small compared to AA mammoth. Anything that will make it less attractive for paid pax will impact its bottom line.
Another question I have is how CX views its FFP. Some airlines view it as a profit center. The new boss comes from an airline with a very profitable FFP. I remember that DC of BMI was also very profitable. Will the new boss move to make MPC very profitable too? My guess is that BA/AA awards are profitable to both CX and MPC. They fill the airplanes at a reasonable price level (good for CX) and there contribute to the bottom line of MPC.
There is already a discrimination against non-MPC members for awards as premium awards, when released, are first open to MPC members (say for a couple of weeks) and they released to other OW if not taken. Going much beyond that could run against the profit motive outlined above by alienating the much-needed non-MPC members. Like many, I fly a lot in J/F on CX eventhough not MPC, so I care how CX treats if I cannot redeem on CX, then it is unfair and I have to make choices. The basic question is how CX values the OW alliance. My guess is that it is essential to CX and that would dictate many of their choices.
#662
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,807
P.S. At the moment we cannot manufacture AAdvantage miles directly in HK yet (hence our interest in U.S. credit cards for non-residents). I won't be surprised if AA offers it thru a co-branded credit card now that it flies here. When that happens CX will really have the Barbarians at the Gates and the drawbridges will go up.
#663
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
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The issue is that unlike AA members, we don't plan our vacation 365+ days in advance. We don't book our flights on the same day the seats are released. Hence why LH arrangement with UA is something that I think we all can live with (personally I think SQ or LX arrangement is better but I can see the merit of releasing last-minute award space to other FFP members once your own FFP members don't want them).
But even I'm finding T+360 (I should have first divs as a MPO member right) I've been finding the pickings hard going:
Case in point: SYD-HKG Easter Monday 2015: at T-360 08:00 all four flights were available with 2 redemption seats in J. By 10:00 only the 07:30 CX110 was left.
Also CX is being less generous on inventory.
Case in point: SYD-HKG Easter Monday 2016: at T-360 09:00 (I was flying til then) not even CX110 was offered.
Also CX is being less generous on inventory.
Case in point: SYD-HKG Easter Monday 2016: at T-360 09:00 (I was flying til then) not even CX110 was offered.
BKK: nothing til PM
OKA: nothing at all
This was 8AM, wife and I set up on two computers as if we're trying to grab iPhones from iReserve at 08:00. Fortunately I grabbed the 28 April 2016 night flight into BKK - we have ambitious plans to reach Samui via NST with FD (so ambitious I need to check my insurance for missed connections cover for my way back).
Last edited by percysmith; May 11, 2015 at 2:56 am
#664
Join Date: Apr 2004
Location: HKG
Posts: 42
This is another point constantly being made here, and not entirely accurate. Hong Kong is awash with point-collecting credit cards, all of which can be rolled into Asia Miles, some of which carry no fee, and all of which earn double miles or more on overseas purchases, a very significant mileage booster compared to the AA branded credit card, which only has the initial bonus. There are other unique mileage booster options in HK, like restaurants. On the other hand, AA customers collect miles only on high fares flying CX (H and above) - the reverse is not the case, CX pax collect AM on most AA fares - clearly a measure intended to discourage HK residents from using AAdvantage as their home program.
#665
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,807
This is another point constantly being made here, and not entirely accurate. Hong Kong is awash with point-collecting credit cards, all of which can be rolled into Asia Miles, some of which carry no fee, and all of which earn double miles or more on overseas purchases, a very significant mileage booster compared to the AA branded credit card, which only has the initial bonus. There are other unique mileage booster options in HK, like restaurants.
And unlike BAEC we in HK cannot join AAdvantage and earn AA miles easily from our credit card spend or travel on CX.
Of course CX is to blame for this - chasing AA redemption revenue whilst (in my opinion) hiking prices for own members through low release of premium LH and cheap SH.
But I guess it also is CX doing well this year or two. So well it has now decided to forgo AA redemption revenue. It might change its mind in the next downturn, but it has already forgone a lot of goodwill on both sides.
#666
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,239
Um...no? The current discussion in the very long CX booking thread on the consolidated AA forum is currently around AA award seats not being bookable even when several are visible on BA/JL/QF.
Ah, silly me. All AA members, and only AA members, plan vacations 365+ days in advance. (FWIW, I have never done that).
I think people are losing sight of the fact that AA is a much bigger airline, with more passengers and more flights compared to CX, and any of the other OW carriers. So all else equal, yes, there will be relatively more AA passengers looking to book on the smaller carriers. And I'm sorry that by virtue of your geographic location, you don't really have the need to avail yourself of AA's huge network.
And yes, I do understand that the two "sides" can go back and forth on this topic ad infinitum.
I think people are losing sight of the fact that AA is a much bigger airline, with more passengers and more flights compared to CX, and any of the other OW carriers. So all else equal, yes, there will be relatively more AA passengers looking to book on the smaller carriers. And I'm sorry that by virtue of your geographic location, you don't really have the need to avail yourself of AA's huge network.
And yes, I do understand that the two "sides" can go back and forth on this topic ad infinitum.
#667
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,807
I think people are losing sight of the fact that AA is a much bigger airline, with more passengers and more flights compared to CX, and any of the other OW carriers. So all else equal, yes, there will be relatively more AA passengers looking to book on the smaller carriers. And I'm sorry that by virtue of your geographic location, you don't really have the need to avail yourself of AA's huge network.
#668
Join Date: Nov 2012
Location: NYC
Programs: Marriot Am, MU Pt
Posts: 3,092
What I meant was does reset it early change your membership year (say it's January 2015 to December 2015, but if you reset it, it becomes May 2015 to April 2016) or does it just extend it (so January 2015 to December 2015 is now January 2015 to December 2016)?
#669
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Original Poster
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When SQ started restricting their premium J, F and R seats from other *A members, there were some grumbling but eventually life didn't end and people moved on. Some even got Krisflyer memberships and stared transferring their cc points over to redeem the coveted Suite tickets. LH does the same in restricting their F seats till a week before departure. As does ANA.
CX is merely doing the same. Their premium award seats can still be redeemed by partners (note CX is not saying that all premium seats will be restricted from partner airlines) but maybe with a fee, eg fuel surcharge like BA is doing and no one is complaining for AA to drop BA as a partner.
CX is merely doing the same. Their premium award seats can still be redeemed by partners (note CX is not saying that all premium seats will be restricted from partner airlines) but maybe with a fee, eg fuel surcharge like BA is doing and no one is complaining for AA to drop BA as a partner.
#670
Anyone who claims to fly a ton of F/J flights every single year ought to have done their own cost-benefit analysis to decide which path makes more sense. If your opportunity cost is some 400K miles that you could have earned additionally while simultaneously increasing your spending power on a per mile basis, with a net effect as though you would have earned an additional 900K AM, then it begs to ask, is all the extra Op-ups that you would have receive as a CX DM vs. AA OWE worth the difference? Then again, if you are flying F that often, what's the point of Op-ups? Seems to me, a frequent F flyer should always credit his flying miles to something other than MPC, it is only in the case of a frequent J flyer hoping for Op-ups that there may be a justification for going for CX DM.
Full disclosure: Long time MPC member but treated it as a frequent shopping program, which is what it really is. Flight miles go elsewhere. Asia Miles is by far my most important "mileage bank".
#671
When SQ started restricting their premium J, F and R seats from other *A members, there were some grumbling but eventually life didn't end and people moved on. Some even got Krisflyer memberships and stared transferring their cc points over to redeem the coveted Suite tickets. LH does the same in restricting their F seats till a week before departure. As does ANA.
CX is merely doing the same. Their premium award seats can still be redeemed by partners (note CX is not saying that all premium seats will be restricted from partner airlines) but maybe with a fee, eg fuel surcharge like BA is doing and no one is complaining for AA to drop BA as a partner.
In any event, AM may very well head for another devaluation because accumulating AM other than flying is just way too easy. I am based in North America and don't deal with any Hong Kong based FI but AM has such extensive network of partnerships here that I am confident to say my ground based earning rate on a per $USD basis is way, way, better than any HKG based AM member even though HKG based members have access to a lot more promotions and sign up deals.
#672
Join Date: May 2009
Posts: 6,978
I think it's good that each airlines protect their own elites. Being in an alliance has many mutual benefits, but it shouldn't be forced communism. Just because AA is a partner doesn't mean AA has a god-given right to redeem F on CX, especially at significant reduced miles/points. Just like CX shouldn't scorn AA for giving away miles and points either, that's their choice. But I applaud CX for taking the steps to stop partner members from redeeming F cabins, just like I have no problem if AA/BA stops CX members from redeeming their F cabins.
We all make choices: do you want cheap upgrades and opportunity to earn tons of miles? Go to AA. Do you want classy service and a chance to redeem CX F class? Go to CX. Etc.
My company just denied my request to reduced my travels, gosh.... anyway, looks like I will be a CX DM for another year at least.... gosh I hope CX refreshes their PEY soon....
We all make choices: do you want cheap upgrades and opportunity to earn tons of miles? Go to AA. Do you want classy service and a chance to redeem CX F class? Go to CX. Etc.
My company just denied my request to reduced my travels, gosh.... anyway, looks like I will be a CX DM for another year at least.... gosh I hope CX refreshes their PEY soon....
#674
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,807
So you claim authority to speak on behalf of all MPC members? Sorry, this is not a rational discussion at all. MPC elites consciously chose to accumulate their flights with an inferior FFP for the purpose of mileage earn/burn. If by being a CX Diamond means that it will maximize your Op-up chances, then you win some and lose some, it is that simple. The AA members, especially those with no or low status have almost no chance of getting Op-up. Seems to me the trade off is clearly laid out - once you chose your preference/path, what's the point of complaining about "I can't have it both ways"?
Anyone who claims to fly a ton of F/J flights every single year ought to have done their own cost-benefit analysis to decide which path makes more sense. If your opportunity cost is some 400K miles that you could have earned additionally while simultaneously increasing your spending power on a per mile basis, with a net effect as though you would have earned an additional 900K AM, then it begs to ask, is all the extra Op-ups that you would have receive as a CX DM vs. AA OWE worth the difference? Then again, if you are flying F that often, what's the point of Op-ups? Seems to me, a frequent F flyer should always credit his flying miles to something other than MPC, it is only in the case of a frequent J flyer hoping for Op-ups that there may be a justification for going for CX DM.
Anyone who claims to fly a ton of F/J flights every single year ought to have done their own cost-benefit analysis to decide which path makes more sense. If your opportunity cost is some 400K miles that you could have earned additionally while simultaneously increasing your spending power on a per mile basis, with a net effect as though you would have earned an additional 900K AM, then it begs to ask, is all the extra Op-ups that you would have receive as a CX DM vs. AA OWE worth the difference? Then again, if you are flying F that often, what's the point of Op-ups? Seems to me, a frequent F flyer should always credit his flying miles to something other than MPC, it is only in the case of a frequent J flyer hoping for Op-ups that there may be a justification for going for CX DM.
Those who want soft benefits with MPO have to pay with reduced choices on their redemptions.
It's the elites who qualify in K/M/L/V who bank in their miles with AM/MPO that have no choice though - they can't avail themselves of AAdvantage/BAEC membership arbitrage.
#675
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Join Date: Oct 2011
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When SQ started restricting their premium J, F and R seats from other *A members, there were some grumbling but eventually life didn't end and people moved on. Some even got Krisflyer memberships and stared transferring their cc points over to redeem the coveted Suite tickets. LH does the same in restricting their F seats till a week before departure. As does ANA.
CX is merely doing the same. Their premium award seats can still be redeemed by partners (note CX is not saying that all premium seats will be restricted from partner airlines) but maybe with a fee, eg fuel surcharge like BA is doing and no one is complaining for AA to drop BA as a partner.
CX is merely doing the same. Their premium award seats can still be redeemed by partners (note CX is not saying that all premium seats will be restricted from partner airlines) but maybe with a fee, eg fuel surcharge like BA is doing and no one is complaining for AA to drop BA as a partner.