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Getting bumped....Delta dollars vs. MQMs?

 
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Old Aug 5, 2004, 12:51 pm
  #1  
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Getting bumped....Delta dollars vs. MQMs?

Maybe this has been addressed before, but if given the option, would you take 1000 MQMs instead of 200 Delta dollars for getting bumped? If not 1000, how many?

Also, are the dollars carried as a liability on the books, and if so, how much are they giving out per year?

Me personally, I'd take the miles, because for the most part, my company pays for my travel and the dollars wouldn't do me much good.
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Old Aug 5, 2004, 12:55 pm
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Personally, I don't need the miles so I'd take the Delta Dollars if they were transferable. Then I'd give them to a friend or someone who might need them.
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Old Aug 5, 2004, 1:06 pm
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I don't think the dollars are transferable are they?
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Old Aug 5, 2004, 1:20 pm
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Originally Posted by vendsit
Maybe this has been addressed before, but if given the option, would you take 1000 MQMs instead of 200 Delta dollars for getting bumped? If not 1000, how many?

Also, are the dollars carried as a liability on the books, and if so, how much are they giving out per year?

Me personally, I'd take the miles, because for the most part, my company pays for my travel and the dollars wouldn't do me much good.
It would have to be at least 1500 MQMs. A $200 Delta dollar voucher would at least pay for a 4 segment trip in T or U and thus the minimum 375 MQMs x 4 = 1500 MQMs. But you're not getting anything but miles. So, they'd have to make it at least 3000 MQMs for me to take it.
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Old Aug 5, 2004, 2:13 pm
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I agree, needs to be over 1000 MQM's... for 1500, I'd probably take it over the miles (just because I am still a few MQM's short of GM for next yr).
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Old Aug 5, 2004, 2:48 pm
  #6  
 
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Originally Posted by vendsit
I don't think the dollars are transferable are they?
They are transferable in the sense that the person named on the voucher can purchase a ticket for anyone else as long as they present themselves at the airport or a ticketing office when it is time to "buy" the ticket for the third-party. Does that make any sense?
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Old Aug 5, 2004, 2:54 pm
  #7  
 
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Everyone's situation is different but I certainly wouldn't want the miles.

Although I have 173,000 MQM thus far this year, I have paid for all of my flights personally. I look forward to being bumped and receiving Delta dollars (got $200 + $400 on 2 bumps Friday evening) and am glad that I can use these on future flights. I don't have the luxury of someone else paying for my tickets and need to go to PHL weekly for medical reasons. I have more miles than I know what to do with but refuse to give Delta double miles for my flights. I rarely have the luxury of finding Sky Saver award tickets for the dates/times that I need for my doctor's appointments.

I also believe that a lot of leisure travelers really don't care so much about the miles and want the free trip. If you can fly somewhere on a $200 ticket or use 25,000 to 50,000 for a ticket, which would you do? Thus, the 1000-1500 miles that other FT'ers above have suggested is really not equivalent to the Delta dollars. In this case, it is more valuable to receive the Delta dollars (or, like other airlines, give someone a very restricted ticket) than to be given a few token miles. I, for one, am most grateful that I am not restricted by a particular ticket since I can be much more flexible with the Delta dollars and accrue further miles at the same time.
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Old Aug 5, 2004, 4:50 pm
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Earlier this year, I had three bumps that netted me over 6,000 MQM and a total of $400. I always ask for an F ticket if bumped. Instead of 375 miles per segment (these were all U) I now get 1500 miles per segment. After getting these bumps, I realized that I would make PM again this year.

During spring break out of MCO, I volunteered to be a bumpee for no money if they rewrote ticket as F. Did that twice.

Now that I am assured 125K and nowhere close to 150K this year, MQMs are worthless. Given the fact that a PM with a T fare booked one day sooner than another PM with an H ticket has higher priority for at airport upgrades, I am switching remainder of year bookings to U or T if available.

Oh, how I love these games we play.

marc
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Old Aug 5, 2004, 6:26 pm
  #9  
JS
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Originally Posted by vendsit
Also, are the dollars carried as a liability on the books, and if so, how much are they giving out per year?
I doubt it. Even if they did, it wouldn't be $200 for a $200 voucher, given the spoilage rate.

But, let's say Delta does set up a liability for $1 million for all the vouchers they give out. For simplicity's sake, let's say everyone gets a voucher on the same day in August, and everyone uses them the following April.

This means the 3rd quarter earnings would reflect a $1 million loss. OK, that sort of makes sense.

However, the 2nd quarter earnings the next year would reflect a $1 million gain. That looks odd. How did Delta make $1 million when all they did was transport people at a published fare value of $1 million but didn't collect a cent from them? If anything, Delta lost money in the 2nd quarter because they paid employees and burned fuel to carry people around for free.
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