Good info guys. Yes, reasonable positioning flights are the lifeblood of great redemptions, sometimes.

Now, what about HNL? The former WP program allowed a great boondoggle from HNL to Asia. For 70k, one could redeem in J from HNL-Asia via NRT. The normal routing of course would be NW from HNL-NRT-x. However, west coast mainland gateways like LAX/SFO/SEA/PDX were legitimate routings on such redemptions. Splicing two of these itins with precision therefore yielded two return J trips LAX-Asia, plus one F trip LAX-HNL, for only 15% more miles than one normal CONUS-Asia J redemption (120k). The NW stopover rules allowed for a stopover of months to be invoked at LAX, thus making it perfect for spacing the trips during the year.

I know nothing about EC... is redemption from HNL is cheaper than CONUS? Can it be bent through mainland US? Or how about one-way from HNL to EU via Asia, then a positioning flight? I don't care about originating in TUS, I'll originate in EZE or CAI or GUM for the right redemptions, there are always ways to get there.

Although I haven't studied the BA chart in much detail, my research to date suggests that it is pretty simple, especially insofar as US-Asia award levels are concerned.

In other words, HNL-NRT costs the same 25k miles (each way) as JFK-SIN, and C and F are always 2x and 3x Y levels.

(No easily exploitable zone system like the other UK based FFP that many FTers have grown to love.)

:D:D:D

Best laugh in years. Cost to BA of you using their miles? Absolutely zero. :) In fact they make out the deal. ^

Do you mean to suggest that CX gives its F product away to BA for free so it can make its members happy?

Buenos tardes Hiddy, and a Feliz Navidad to you too.

As for BA making out on the deal, I doubt that's true. After all, you know what I'm going to do as soon as my threshold EC miles have posted. So, Chase gets no more of my swipes - well, they do, but only through my CO PPMC and not the cancelled BA card. I doubt BA makes much from the threshold spend of 2.5k US.

As for billing, there will be intra-alliance internal accounting metrics. BA is the originator of Exec Club miles ("minter of the currency"), but CX will certainly "bill" BA for the F redemption in some medium, much like NUC. The internal accounting will be reconciled at time intervals. So there's a notional liability associated with an F redemption on CX using the BA miles. It's likely to be much larger than the liability BA would present on its statements for a BA F redemption where they're essentially dumping inventory to their EC members at marginal cost. Even if not anywhere near full F pricing, it won't be to their likings :p

If this weren't the case, why would airlines restrict front-cabin inventory from their own members (e.g. US and UA with Starnet blocking, DL and SQ F, BD and LH F etc.)

And, hopefully, my plan will cause the BA CSDs and Waterworld Nigels to boil. But the censorious toads can't stop me now. Wearing an MOL mask during transit might be even better.

I do my part for the cause - which as you know is changing the BA CEO to MOL.

Ah.....BA aren't as daft as some people like to think especially our old friend from the BAEC forum redtailshark.
You see......he is under the impression that he is going to receive 100000 BA miles for nothing - everyone knows that you don't get something for nothing so what is the catch? Of course there is a catch BA management aren't as daft as he thinks. So no matter which airline he uses his miles for BA will be the winners in the end.....not him. Wonder if he has read through the small print?

Enjoy your "free" redemption redtailshark. ;)

Naturally, BA had a financial motive to put gazillons of miles into play with Chase.

But, from the perspective of yours truly, the miles are pretty close to free ($40, the opportunity cost of not spending the $2k on my Schwab card).

The cost of $40 is about what it takes to receive 100,000 BA miles, that is, if you have a US residence address, and are approved for a BA Visa issued by Chase.

$2,000 spending on BA Visa would net you 50K + 50K BA miles. $2000 at 2% cash rebate on the best alternative, is $40.

While $40 is not free, it is very close to free.

I am sure your old friend redtailshark would really like it this way. :D

As far as the catch, let's say, BA must have a dire need to exchange gazillion miles for cash with Chase to come up with this offer.... Unfortunately, the catch is, the offer is only available to US-based applicants.

I think you'll find it's Chase who has the dire need for customers. BA are raking in the cash for otherwise empty seats. ;)

Perhaps that's the case, but I'd be surprised if Chase was spending more than $300 per account in this (or any) case, which would cap their purchase price (from BA) at around .3 cpm.

Using this valuation, they are effectively receiving $75 for the passenger that flies MIA-PVG on AA (25k Y award), which I'm pretty sure is less than the marginal cost of transporting him (e.g. he consumes more than $75 in food, fuel, and employee resources v. his otherwise empty seat).

Same goes for BOS-LAX at $37.50.

While I acknowledge that these examples are more extreme (in the cost department) than the average redemption, the fact that they exist suggests that people like redtailshark could indeed force BA to lose money in certain situations.

BTW, it wouldn't surprise me if BA was participating on the revenue side of its Chase deal. If so, it might fare pretty well in the process (i.e. every person that runs his card up to $30k and carries a balance cancels out 30 FTers that spend $2k, pay off $2k, and fly to HK).

Not necessarily.

For the starter, quite some posters mentioned they had to either close some of their existing Chase cards, or re-allocate their existing credit lines in order to open the BA cards - this tells you right there that many customers are EXISTING Chase customers.

In today's economy, it would be rather foolish to say the airlines trump the banks (though the banks only triumph because they get government money. But that is another story.)

As you also know very well, one does not have to redeem the miles on BA metal - quite the contrary, BA would have to shell out some bucks to pay for the partner airlines seats.

Dont forget most folks in US are NOT accustom to the horrendous fuel surcharges BA imposes on the Brits. So most would redeem their miles on partners who either have a much more reasonable fuel surcharge or does not have fuel surcharge at all. :D

They certainly are, based on some posts that mentioned about BA's CSRs confirmed the 30K spending while with Jan 2010 official starting time, BA would make the 2009 spending eligible as "the purpose of introducing the 30K spending bonus, is to get holiday spending on the card." No doubt BA would only do so with a cut in the revenue sharing.

Well, my cash back card is free, the BA card is $75, so the total is $115. Still a great deal Even better if you do the $30,000 spend and get a two-fer.

Yeah, the $75 annual fee is a definite cost.

As for the $30K spend offer... consider that it's only valid on BA metal and the opportunity cost of the $30K spend ($600 CB or meeting thresholds in other programs).

In the absence of real intel about how intra-alliance accounting for award redemptions works, I fear we are forced to concede a wash on this point. The fact that UA developed its Starnet blocking filter suggests than a trend toward partner bookings is detrimental to the home program in at least one case, but tmk no proof exists to suggest that BA faces a similar problem. What's more, if a large enough percentage of Chase customers go for the companion certificates, BA may come out okay in this area.