Brancatelli Rumour?
#1
Original Poster


Join Date: May 1999
Location: Ottawa
Posts: 8,573
Brancatelli Rumour?
This week's Brancatelli email says this.
Has anyone heard anything about this?
Thanks!
=aw
BRANCATELLI FILE: THE END OF FREQUENT FLYER PLANS AS WE KNOW THEM
Without drawing any kind of moral equivalency, let's just say that December 1, 2007, is a date that will live in business-travel infamy. That's when one of the Big Six will complete a sneak attack that will destroy the frequent flyer programs as we have known them. If you've got big balances in your frequency plans, you need to know how those miles are going to be made worthless. For all the details, surf to http://joe.biztravelife.com/joe.html
Without drawing any kind of moral equivalency, let's just say that December 1, 2007, is a date that will live in business-travel infamy. That's when one of the Big Six will complete a sneak attack that will destroy the frequent flyer programs as we have known them. If you've got big balances in your frequency plans, you need to know how those miles are going to be made worthless. For all the details, surf to http://joe.biztravelife.com/joe.html
Thanks!
=aw
#2
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 page you requested is only available to contributing members."
Joe's wearing the Members Only jacket.
Joe's wearing the Members Only jacket.
#3
In Memoriam, FlyerTalk Evangelist
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
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?
Who does that leave? US, CO, DL? Who would the 6th carrier be?
#5
In Memoriam, FlyerTalk Evangelist
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
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.
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.
#6
Original Poster


Join Date: May 1999
Location: Ottawa
Posts: 8,573
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
=aw
#7
FlyerTalk Evangelist


Join Date: Dec 2003
Location: LAX
Posts: 11,575
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...
Joe is a bit behind FTers with his forecasts of doom...
#9
Original Member
Join Date: May 1998
Location: **ATL**/PHX/MIA/LAX/HKG
Programs: AA-EXP/DL-Diamond/UA-100K/Hyatt-Globalist/Hilton-Diamond/Marriott-Titanium - Many more....
Posts: 546
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.
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.
#10


Join Date: Mar 2005
Location: HYX
Programs: ~IHG(p)/BW~Nat'l.Exec~ ~NW(SE)~ ~Cessna~ NASM.do-07 ~AAAF.do-05/06/07/08/09
Posts: 1,530
Similar discussion in the NWA forum yesterday: NWA may sell (spin off) WorldPerks?.
In post #8, avidflyer makes a very compelling argument. ^
/.
In post #8, avidflyer makes a very compelling argument. ^
/.
#12


Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,720
#13
Original Poster


Join Date: May 1999
Location: Ottawa
Posts: 8,573
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
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
#14
Join Date: Oct 2001
Location: SMV/ZRH
Programs: LX/M&M, UA, AA, AF/KL, SPG Gold
Posts: 671
I assume it's the story about Delta. There is also a long ongoing thread (started on Oct. 1) in Delta forum.
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.
#15
In memoriam
Join Date: Jan 2006
Posts: 4,020
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!
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!

