Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > American Airlines | AAdvantage
Reload this Page >

Did AA make any money out of me on this trip?

Community
Wiki Posts
Search

Did AA make any money out of me on this trip?

Thread Tools
 
Search this Thread
 
Old May 20, 2019, 6:55 am
  #1  
Original Poster
 
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,435
Did AA make any money out of me on this trip?

My recent trip was following:

BOS-NRT-PVG (JL flight number, JL metal)
SHA-HND (JL flight number, JL metal)
NRT-ORD-BOS (AA flight number, AA metal)

All in one ticket under one PNR. I know some at FT will ask in the way "Why I booked something stupid like that?" question, so I will answer that here first. On return NRT-BOS, JL non-stop looked like pretty booked and it would have raised the fare for about US$ 800 if I chose NRT-BOS JL non-stop so ended up ticketing like that.

The day of the return NRT- ORD flight was posted about an hour and half delay which was no problem since I had enough time at ORD. Check-in at NRT AAgent mentioned about delay of my ORD flight, but also told me that ORD flight is overbooked and if I was willing to switch to JL NRT-BOS non-stop. I was little surprised because I thought AA would have tried to rebook me using their own metal on NRT-LAX or NRT-DFW. That was sweet since that got me back to Boston more than 4 hours early. Agent typed stuff for few minutes and got me Ticket Receipt for JL 8 NRT-BOS in H fare, ticket was not issued as AA 8476 which was confirmed when checked-in at JL the boarding pass did not say "Sold As AA 8476."

I am wondering if AA made any money out of me on this trip or not? It all worked out to my advantage but I would have thought AA would have put me on their own NRT-LAX or NRT-DFW flights if ORD flight was overbooked.
AlwaysAisle is offline  
Old May 20, 2019, 6:59 am
  #2  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,399
The alternative for AA would have been to pay volunteers not to take your flight. Your VDB payment essentially was being put onto the nonstop flight.

Also, perhaps the other AA flights were full or oversold too.
MSPeconomist is offline  
Old May 20, 2019, 7:18 am
  #3  
FlyerTalk Evangelist
 
Join Date: Aug 2012
Location: KHOU/KIAH
Programs: AA EXP | Marriott Bonvoy Titanium| Hyatt Globalist
Posts: 11,235
AA and JL have a TPAC joint venture. So it doesn't matter which metal you were on.

Also, there are plenty of routes that AA doesn't make money on certain pax. I flew to PEK for 240 USD round trip and then used SWUs, for example.
Antarius is online now  
Old May 20, 2019, 7:41 am
  #4  
Original Poster
 
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,435
I did not say AA never had a situation where AA did not make money out of a passenger. I was simply wondering if AA made any money out of my specific situation, my question was not if AA ever have a situation where did not make any money out of a passenger. My question was for my specific situation.

Even under joint venture, if AA sold thicket under JL flight number then doesn't money go to JL?
AlwaysAisle is offline  
Old May 20, 2019, 7:50 am
  #5  
 
Join Date: May 2005
Location: Kyiv, Ukraine
Programs: Mucci, BA Gold, TK Elite, HHonors Lifetime Diamond
Posts: 7,690
Originally Posted by AlwaysAisle

Even under joint venture, if AA sold thicket under JL flight number then doesn't money go to JL?
In this instance AA did not really sell you a ticket for a commercial fare. Airlines pay each other a nominal fee when re-booking passengers, so your H class economy seat may have cost AA all of US$40-50 (just as an example, not saying that this is what AA paid JL). Since AA and JL are in joint venture they share revenue; depending on the specific arrangement it may not matter which airline is the marketing carrier.
Andriyko is online now  
Old May 20, 2019, 8:12 am
  #6  
Original Poster
 
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,435
Originally Posted by Andriyko
In this instance AA did not really sell you a ticket for a commercial fare. Airlines pay each other a nominal fee when re-booking passengers, so your H class economy seat may have cost AA all of US$40-50 (just as an example, not saying that this is what AA paid JL). Since AA and JL are in joint venture they share revenue; depending on the specific arrangement it may not matter which airline is the marketing carrier.
I am aware that airline with interline agreement include such agreement, but I thought it was always like 20-30% off of published fare. For example, if published H fare was US$800 then an airline pay somewhere around US$600 or so. Never thought the interline agreement was like when published fare is about US$800, then airlines pay USD$50. Is it really such is the case? Yes, I am aware of the joint venture and it is specific based upon agreement between airlines. Hence, I asked the question that under specific situation I had if AA made money out of me, or if AA ended up paying more to JL.

Yes, I am asking specific situation of my case, not general question of how joint venture works.
AlwaysAisle is offline  
Old May 20, 2019, 8:32 am
  #7  
 
Join Date: May 2005
Location: Kyiv, Ukraine
Programs: Mucci, BA Gold, TK Elite, HHonors Lifetime Diamond
Posts: 7,690
Originally Posted by AlwaysAisle
I am aware that airline with interline agreement include such agreement, but I thought it was always like 20-30% off of published fare. For example, if published H fare was US$800 then an airline pay somewhere around US$600 or so. Never thought the interline agreement was like when published fare is about US$800, then airlines pay USD$50. Is it really such is the case? Yes, I am aware of the joint venture and it is specific based upon agreement between airlines. Hence, I asked the question that under specific situation I had if AA made money out of me, or if AA ended up paying more to JL.

Yes, I am asking specific situation of my case, not general question of how joint venture works.
I mentioned in my earlier post that this was not how re-booking in IRROPS worked. In the event of IRROPS airlines pay each other a fixed nominal fee. We won't know how much AA paid JL to transport you but it was not a walk-up H class published fare. Regarding your specific question - only AA will know whether it made any more out of you. We don't know how much you paid for your ticket and how much the AA's fare was in that price. But AA did not pay a lot of money to JL (I would not be surprised if AA paid nothing due to the JV agreement - the two airlines may very well have agreed to carry each other passengers for free in IRROPS).
Andriyko is online now  
Old May 20, 2019, 8:38 am
  #8  
 
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,506
Originally Posted by Andriyko
I mentioned in my earlier post that this was not how re-booking in IRROPS worked. In the event of IRROPS airlines pay each other a fixed nominal fee. We won't know how much AA paid JL to transport you but it was not a walk-up H class published fare. Regarding your specific question - only AA will know whether it made any more out of you. We don't know how much you paid for your ticket and how much the AA's fare was in that price. But AA did not pay a lot of money to JL (I would not be surprised if AA paid nothing due to the JV agreement - the two airlines may very well have agreed to carry each other passengers for free in IRROPS).
It's generally not a fixed nominal fee, but being in a JV, it may be something smaller than if they got rebooked on NH/UA. If airlines were paying each other $40-$50 for a 6700 mile flight (as you insinuated in your prior post), AA wouldn't be as stingy as they are when it comes to rebooking on other airlines during IRROPS. My flight on LH/UA from Europe a couple weeks ago showed a full Y fare (and credited as such), if it was such a nominal cost, it would book into a fare bucket with low or no mileage earning.

EDIT: To clarify, everything I have ever seen is a pre-negotiated discount off of the walk-up fare, although that discount varies between airlines.
lowfareair is offline  
Old May 20, 2019, 9:56 am
  #9  
 
Join Date: May 2005
Location: Kyiv, Ukraine
Programs: Mucci, BA Gold, TK Elite, HHonors Lifetime Diamond
Posts: 7,690
Originally Posted by lowfareair
It's generally not a fixed nominal fee, but being in a JV, it may be something smaller than if they got rebooked on NH/UA. If airlines were paying each other $40-$50 for a 6700 mile flight (as you insinuated in your prior post), AA wouldn't be as stingy as they are when it comes to rebooking on other airlines during IRROPS. My flight on LH/UA from Europe a couple weeks ago showed a full Y fare (and credited as such), if it was such a nominal cost, it would book into a fare bucket with low or no mileage earning.

EDIT: To clarify, everything I have ever seen is a pre-negotiated discount off of the walk-up fare, although that discount varies between airlines.
I did not insinuate anything. Airlines negotiate and pay each other fixed nominal fees. AA's stinginess may be explained by the lack of a disruption agreement with the particular carrier, or because it is cheaper/free to reroute on AA's own/OW services. The available booking classes do not matter. It may be full fare Y or a lower booking class, the airline that carries the disrupted passenger will get paid the same as long as an agreement is in place. The idea is not to profit here. JL is well aware in this instance that it may depend on AA tomorrow to carry its disrupted passengers. I did specifically say that the US$40-50 figure was given as an out-of-the-blue example. I am not privy as to what fees AA and JL (if any) negotiated between themselves.

Last edited by Andriyko; May 21, 2019 at 3:07 am Reason: Spelling
Andriyko is online now  
Old May 20, 2019, 11:15 am
  #10  
FlyerTalk Evangelist
 
Join Date: Apr 2001
Location: NYC
Posts: 27,227
Nobody (here) knows. Now calm down.
enpremiere likes this.
ijgordon is offline  
Old May 20, 2019, 3:24 pm
  #11  
Suspended
 
Join Date: Aug 2017
Programs: Rapid Rewards, AAdvantage, SkyMiles
Posts: 2,931
Originally Posted by ijgordon
Nobody (here) knows. Now calm down.
Yup, only a couple of departments at their Fort Worth HQ know and they certainly aren't going to release that information.
DCP2016 is offline  
Old May 20, 2019, 5:39 pm
  #12  
FlyerTalk Evangelist
 
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 31,004
Future suggestion - If you're going to get p**ed off when someone tries to answer your question, then don't ask it.
reeg2, ijgordon, Andriyko and 4 others like this.
CPRich is offline  
Old May 20, 2019, 10:16 pm
  #13  
Moderator: American AAdvantage
 
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
Originally Posted by AlwaysAisle
I did not say AA never had a situation where AA did not make money out of a passenger. I was simply wondering if AA made any money out of my specific situation, my question was not if AA ever have a situation where did not make any money out of a passenger. My question was for my specific situation.

Even under joint venture, if AA sold thicket under JL flight number then doesn't money go to JL?
Whether AA made any money on the tickets sold to me is something I really, really could not care less about.

Besides,

“I don’t think we’re ever going to lose money again,” Parker said. “We have an industry that’s going to be profitable in good and bad times.” - Doug Parker, 28 Sep 2017

“Even in a bad year, Doug Parker says, the world’s biggest airline should earn about $3 billion in profit before taxes.“ - USA Today
JDiver is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.