Evolution of FF plans
 

Delta (DL) has served notice that as of Jan 1, 2014 FF status in their plan will have a variant of the QF 4 sector rule: top tier status will require $12,500 dollar spend on DL. Lowest tier status requires $2,500. This is in addition to the miles/sectors requirement. How long will it take AA and UA etc. to match DL?

This Dollar spend on DL requirement can be avoided by spending $25k on a DL credit card so not really requiring $12,500 spend on DL to attain to tier status

Conceptually seems a good idea though to me to tie status to spend

Not germaine to your question, but would you agree that this a generally a good thing, for any FF program?

I believe its aimed at weeding out some of the otherwise high status members who get there (and use lounges and other facilities/privileges) via credit card and other non airline spends.

Personally I'm happy for FF perks to be aimed fairly and squarely at FFs, not points accumulators.

Except it isn't since $25k credit card spend negates the requirement.

I think the previous post was in reference to scheme like AA, where people could get status (in the past) without setting foot on a plane.

This is limited to 1 specific credit card which is otherwise highly undesirabe -- the Amex Skymiles card. It doesn't apply to any other card, and technically is not an announced card benefit but only for 2014. So 99% of DL Skymiles members will have to qualify using dollar spend on DL flights.

When will QFF add a similar dollar spend requirement? Fwiw, DL is affiliated with Virgin, so it hits a bit closer to home than otherwise.

Cards that earn miles to FF schemes tend not to be that undesirable to people collecting to the relevent FF scheme.

How much more announced is there than
http://www.delta.com/content/www/en_...n-dollars.html
regardless, rather than adding pure speculation about QF, I see not how this is of any relevence to a Qantas FF forum
plus
http://www.delta.com/content/www/en_...edit-card.html

QF effectively do the same by requiring 4 ~s (albeit can be achieved somewhat more cheaply) (but could for example do Plats need min 100 SCs on QF metal).
VA already have stepped flights (eg Plats need 8 flights on VA)

SQ already has the PPS program based on dollar spent. However, other flyers can still earn *A gold without this requirement.

How is dollar spend a good indicator of "Frequent Flyer"? Are people flying in Business or First more of "Frequent flyers" than those in economy, even for the same number of miles/segments?

I'm not suggesting that those paying more for their tickets aren't better customers for the airline, but they aren't any more "FFs" than the rest of us!

United has also introduced a 4-flight requirement. In theory all OneWorld airlines are supposed to do it too, although in practice many don't.

[mod hat] While this is a fascinating discussion, it would be even better if we'd talk about how this could effect QFF. [/mod hat]

I think the existing structures of US FF programs mean that Delta introducing MQD (Medallion Qualifying Dollars) is unlikely to apply to Qantas.

Using the examples of SYD-PER (2,445 miles) and JFK-LAX (2,475 miles):

DL (and the other US programs) base their status qualification based on miles flown.
- JFK-LAX return for the first week in February prices out at USD $322 return for the cheapest fare
- Ignore any bonuses, you would need to fly 10 return trips to achieve about 50,000 miles and hence qualify for Gold Medallion on Delta (the equivalent of QF Gold), for a cost of $3,220.
- The only way to earn more under the current DL structure would be to fly on an M economy fare (or above), which nets you 150% of miles flown (same if you actually bought a business class ticket). M fares are pricing out at $1,375, so you would have to do 7 round trips (4,950 miles plus 50% bonus) to reach 50,000 miles, or $9,625.

Because QF bases their status eligibility on status credits (which to a greater degree factor in the fare class of the ticket than the US programs):
- A return SYD-PER earns you 50 SC, you need to do 14 return flights, for a cost of $534 each or $7,476 in total to reach Gold on QF
- If you choose a Flexi Saver fare (which would net you 100 SC for the return trip, cost goes up to $858, times 7 return trips is $6,006
- If you flew business, $3,131 round-trip for 200 SC, you'd need to do 3.5 trips, or $10.958.50.

Of course, there are ways to game the QF system (you could fly 14 JFK-LAX return trips on AA for the same price as Delta or $4,508 to net you 700 SC) but the average QFF will be spending more to reach status.

"Mileage running" to achieve status is not as cost efficient on QFF as it is in the US programs, which is what I think DL changes are meant to get around. DL's lowest fares will still earn 100% mileage credit towards status under the new system, but you can't just fly 10 cheap fares to earn the mileage flown requirement without also meeting the spend requirement.

deleted in favour of next post

This is what I actually said, docbert:

Note the "non-airline" bit.

In general, none of the US airlines give status-qualifying miles for "non-airline" activities. There are a few exceptions (eg, with my older United credit card I can get up to 5K qualifying miles each year, but no more). AA used to give status based on all miles earnt (including credit card spend) but stopped this several years ago.

In fact, for the things you specifically mentioned they are moving more *towards* giving them from non-airline spend, without giving status at the same time. Credit cards frequently come with lounge access, extra bags, priority boarding, etc, without actually giving status.