Brancatelli Rumour?
 

This week's Brancatelli email says this.

Has anyone heard anything about this?

Thanks!
=aw

"The page you requested is only available to contributing members."

Joe's wearing the Members Only jacket.

I have not, but I think you can take both UA and AA out of the running, as they are both looking at spinning off their mileage programs for big dollars. In the case of UA, their program could be valued as high as $800 million. Changing the rules would make them less valuable.

Who does that leave? US, CO, DL? Who would the 6th carrier be?

NW?

=aw

Thanks.

I remember the revolt when Delta went to 50% miles on cheap fares about 6-7 years ago, but retreated after complaints from business flyers who mixed business and leisure fares. Wonder if one of them is going to eliminate miles on discount tickets? That would impact a lot of us.

Brancatelli's tease is about existing balances becoming worthless. Something like BA's changes a few years ago would do that (well, not "worthless", but massive erosion on long-haul F and J [especially F]). Can't really see an American carrier doing that without warning (BA gave 6 months or a year), if at all.

=aw

I assume it's the story about Delta. There is also a long ongoing thread (started on Oct. 1) in Delta forum.
Joe is a bit behind FTers with his forecasts of doom...

I dont put any credit into anything this guy write/publishes. I sometimes wonder what he is thinking when he is writing??

Not sure if this is what he is aluding to but...

CO raised most awards in 2008 by a flat 20% and changed rules to read that any change to program (incl. discontinue) can be done with 30 day notice.

Also removed on line booking bonus and a few other perks.

NW is rumored to be good for 2008 still with no major devals rumor'ed

DL has some deval with some changes to awards and removed on line booking/check in bonus

No idea on UA/AA/US but nothing from US is good these days.

Similar discussion in the NWA forum yesterday: NWA may sell (spin off) WorldPerks?.

In post #8, avidflyer makes a very compelling argument. ^

/.

Do a google blog search for:

brancatelli delta

and order the results by date.

Wall street estimated many multiples of that figure.

Thanks everyone, interesting reading. Though I hardly think eliminating "the last seat" renders everyone's points worthless. I could see a doubling or tripling or more of international awards (as BA did) qualifying for such a statement, though it would still be hyperbole in that case.

I wonder if DL will add a new tier, analogous to AC's ClassicPlus. That gives the last seat to everyone, but instead of being twice the points it's a variable amount that seems to end up being 2c/pt (so 500K for a $10K Business Class ticket to AU).

=aw

You're right. It's about the coming restrictions on Delta's SkyChoice awards.

IMHO he's exaggerating big time. Most non-US FFPs never had such unrestricted awards and I wouldn't call them exactly worthless because of that.

Don't know about Joe's claims, although he may have a point, since Delta's change may just be the first step in a growing series of devaluations of miles.

But, IMHO, it does look as though, in the long run, miles are going to be worth a lot less, on any carrier. The best rule of miles appears to "burn, baby, burn." @:-) And, maybe it is time to search for a new, cash rebate card. No one can devalue the dollar! :D