Portent of things to come?
#1
Original Poster
Join Date: May 2002
Posts: 42
Portent of things to come?
Midwest Express has announced that the miles required for some of their AAdvantage awards will increase beginning Oct 1, 2004. Continental US and Canada will go to 30,000; Hawaii to 40,000 and Mexico & Caribbean to 35,000. I've not seen anything from AA that they are raising award levels; however, Midwest has always set the miles required for a partner award at the partner requirement. The have also always been very good about warning their frequent fliers of award level increases. I'm posting this here rather than the Midwest forum or American forum since other carriers may decide to go along as well. The announcement can be found here:
http://www.midwestairlines.com/speci...ail.asp?id=163
http://www.midwestairlines.com/speci...ail.asp?id=163
#3
A FlyerTalk Posting Legend




Join Date: Nov 2000
Location: Atlanta, GA, USA
Programs: DL estranged 1MMer and lifetime gold, F9/CO/NW/UA/AA once gold/plat now dust, Spirit RIP
Posts: 42,182
The risk the big airlines take with these devaluations is that Joe Sixpack the infrequent flyer realizes the value is dropping. Many of those trillions in unredeemed miles are in individual accounts that have been slowly building up for years. Imagine Joe has just under 20K, is excited about getting his first-ever award ticket, and just took a long-distance company switch on a 5,000-mile offer to try to top up. Then this hits. Could be a real turnoff, eh?
Maybe this straw won't break the camel's back, but at some point (especially if after repeated devaluations) the public could go sour. And that would cripple both the revenue from the non-flight mile selling and the perceived value of the programs themselves. Don't forget that the programs and promise of maybe a trip to Hawaii someday are some of the most potent weapons the big airlines have against the LCCs.
My guess is that if the big airlines do follow, we'll get a heaping helping of baloney about fuel prices or terror-related security costs or some other external factor being supposedly behind it. And most laymen would buy that, even though the consequences above would still apply. You certainly won't be hearing the airlines fessing up to the seat supply/unredeemed miles imbalance that they themselves created.
Maybe this straw won't break the camel's back, but at some point (especially if after repeated devaluations) the public could go sour. And that would cripple both the revenue from the non-flight mile selling and the perceived value of the programs themselves. Don't forget that the programs and promise of maybe a trip to Hawaii someday are some of the most potent weapons the big airlines have against the LCCs.
My guess is that if the big airlines do follow, we'll get a heaping helping of baloney about fuel prices or terror-related security costs or some other external factor being supposedly behind it. And most laymen would buy that, even though the consequences above would still apply. You certainly won't be hearing the airlines fessing up to the seat supply/unredeemed miles imbalance that they themselves created.
#4
Join Date: Mar 2001
Location: Tejas, I just can't get away from the place
Programs: Exxon Mobil Supertanker, WN Double Peanut, Accor Golden Cockroach
Posts: 8,350
Interesting. AA is running a promo reducing the number of points for "short haul" (under 750 miles) from 25,000 to 15,000.
#5
Suspended
Join Date: Dec 2001
Posts: 538
Originally Posted by LarryKahan
Midwest Express has announced that the miles required for some of their AAdvantage awards will increase beginning Oct 1, 2004. Continental US and Canada will go to 30,000; Hawaii to 40,000 and Mexico & Caribbean to 35,000. I've not seen anything from AA that they are raising award levels; however, Midwest has always set the miles required for a partner award at the partner requirement.
http://www.midwestairlines.com/speci...ail.asp?id=163
http://www.midwestairlines.com/speci...ail.asp?id=163
#6




Join Date: Apr 2000
Location: Cleveland
Programs: AF/KLM Plat For Life/UA Million Miler-PremEx For Life/SPG Gold
Posts: 5,056
Consistency
Midwest is only the latest airline to make a midyear devaluation, following closely behind Continental which raised it South America redemption levels and Air Canada that raised all its overseas redemption levels.
My issue isn't with the devaluations per se, but the troubling timing of them.
Devaluations should take place during the NEXT benefit year not during the middle of an existing benefit year.
My issue isn't with the devaluations per se, but the troubling timing of them.
Devaluations should take place during the NEXT benefit year not during the middle of an existing benefit year.

