How Much Would You Pay UA, if anything, for a AAirpass (Unlimited Flights for x Time)
#32
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I've heard that Michael Dell bought one of the AA passes. Des he still have it? Are any of those still valid?
#34
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My neighbor bought one for herself and her husband. He insisted that they buy it in her name because "women live longer". They have been using it for decades. Sadly, he passed away earlier this year (guess he was right). She still uses it and can take a guest with her. First Class travel anywhere in the world.
#35
Join Date: Nov 2007
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Good article written by the daughter of a man who bought one of those AApasses then got it revoked for abusing it. Sorta long article but good.
https://narratively.com/the-man-with...irline-ticket/
The Man with the Golden Airline Ticket
My dad was one of the only people with a good-for-life, go-anywhere American Airlines pass. Then they took it away. This is the true story of having—and losing—a superpower.
https://narratively.com/the-man-with...irline-ticket/
The Man with the Golden Airline Ticket
My dad was one of the only people with a good-for-life, go-anywhere American Airlines pass. Then they took it away. This is the true story of having—and losing—a superpower.
#36
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A long-term pass won't happen because United can borrow money for near-free, so anyone willing to pay a pass price United finds comparable to just borrowing the money is going to use the pass more than United would like for the money they're getting.
#37
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UA, AA, DL etal. could (1)price these based on age, (2)purchase TERM life insurance policies, they would be the beneficiaries Term life insurance is relatively cheap--they'd probably come out ahead in the long run!
#39
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I guess a lot of us long term customers have a can't do without you/hate relationship with UA.
I am sure a lot of us don't want UA to go out of business and lose our miles/lifetime statuses. However, none of us trusts UA enough - trust management won't find ways to screw us (especially over time on any good long-term deals they offer now), trust the company will be there... People don't even want UA to hold onto our money for a few extra months!
Had UA maintained better customer loyalty, would we be more cooperative and trusting now?
One guy I work with said he is against the government bailing out UA. Then I reminded him his lifetime Platinum status will be useless if UA is gone. He changed his mind.
I am sure a lot of us don't want UA to go out of business and lose our miles/lifetime statuses. However, none of us trusts UA enough - trust management won't find ways to screw us (especially over time on any good long-term deals they offer now), trust the company will be there... People don't even want UA to hold onto our money for a few extra months!
Had UA maintained better customer loyalty, would we be more cooperative and trusting now?
One guy I work with said he is against the government bailing out UA. Then I reminded him his lifetime Platinum status will be useless if UA is gone. He changed his mind.
#40
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I'm very doubtful that there are banks lining up to loan money to UA at the moment, no matter what the interest rate is. If you mean they can get money for free from the government, then you may be right.
#41
Join Date: Jan 2013
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Also, yes, AA lost a ton of money on these and UA could loose a ton as well if they did something like this. However, if it's a matter of eating the cost for the next 30 years or going down the tubes now, I would think something like this is worth it as a last resort (from the airline' s POV).
#42
Join Date: Jul 2015
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Presented as a case study from ten years ago as a reference point for discussion.
For example, would one be willing to opt for an all-you-can-fly domestic option vs an entire network option? What about being able to book into last seat availability vs minimum AP requirements and/or fare bucket restrictions?
The key here is the promotion from ten years ago gives some insight into how UA was thinking about this ten years ago (it should also be noted that since the promo did not come back it probably suggest UA was NOT thinking about over the past decade either) but my point is this: when COVID passes I suspect there will be a period of time where plans will have low LFs compared to the past 10 years. UA and its industry peers will also be hurting for cash. As such, it may make sense for UA to dust off this decade-old idea and see if it now makes sense, even if it did not make sense in the years prior due to strong demand and full planes.
Inclined to agree - AA got no takers at $3mm. Even if UA offers a full-J, no restrictions, AAirpass for $2.5m, you're looking at fifty (50!) years to recoup the investment assuming you ignore the opportunity cost of the initial investment and would have otherwise spent $50,000 for each of those fifty years!
OTOH if UA offered something like a six month global PE pass for $2,500 with a $300 co-pay per one-way trip, that might be interesting to many here (and UA too!). Let's otherwise spoiled inventory be used up rather than go empty, gets cash into UA coffers, and removes the "what-if-UA-reneges-risk" others have ID'd upthread.
For example, would one be willing to opt for an all-you-can-fly domestic option vs an entire network option? What about being able to book into last seat availability vs minimum AP requirements and/or fare bucket restrictions?
The key here is the promotion from ten years ago gives some insight into how UA was thinking about this ten years ago (it should also be noted that since the promo did not come back it probably suggest UA was NOT thinking about over the past decade either) but my point is this: when COVID passes I suspect there will be a period of time where plans will have low LFs compared to the past 10 years. UA and its industry peers will also be hurting for cash. As such, it may make sense for UA to dust off this decade-old idea and see if it now makes sense, even if it did not make sense in the years prior due to strong demand and full planes.
Inclined to agree - AA got no takers at $3mm. Even if UA offers a full-J, no restrictions, AAirpass for $2.5m, you're looking at fifty (50!) years to recoup the investment assuming you ignore the opportunity cost of the initial investment and would have otherwise spent $50,000 for each of those fifty years!
OTOH if UA offered something like a six month global PE pass for $2,500 with a $300 co-pay per one-way trip, that might be interesting to many here (and UA too!). Let's otherwise spoiled inventory be used up rather than go empty, gets cash into UA coffers, and removes the "what-if-UA-reneges-risk" others have ID'd upthread.
Interesting topic, I (especially now) can't swing the inflated figures that a lifetime J pass would cost, but I'd seriously consider it if I could even if it were a stretch: I'm one of those who can routinely find jobs working from anywhere that there's network connectivity and now that I'm starting to see what's available out there I am strongly considering just living elsewhere a month at a time. There's some dollar value associated with that, especially doing it for years on end and also having to be at client sites every so often which would mandate more flights than just 12 RT's per year.
Then again I'm just fine in probably anyone's PE product at this point even for TATL or TPAC and I'd happily pay anything close to affordable on a deal for that class.
#43
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Yes, it was called “Infinite Elite” and was awarded if you stuck with CO as gold for 5 consecutive years. This was during the bankruptcy in the 90’s. That’s back when the levels were Bronze, Silver and Gold and I think the annual thresholds were 20/40/60k.
#44
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Just based on inflation, if they offered the pass + companion at the same basic rate American did it would be $1M today. I would *hope* the terms would be along the lines of "if there's a seat available for sale on any of our planes, in any cabin, you can book it forever". While I don't have as negative a view of United as some of this board, I agree that unforeseen things like getting rid of the "J" designation for premium seats or even changing the name of the airline (let's say United and Lufthansa merged and changed the name of the new entity to Global Airlines, or something) could mean the deal is over.
Would anyone pay $1M for unlimited United travel forever? I kind of think anyone with $1M lying around to spend on something like this isn't particularly interested in flying commercial.
Would anyone pay $1M for unlimited United travel forever? I kind of think anyone with $1M lying around to spend on something like this isn't particularly interested in flying commercial.
#45
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Originally Posted by jedward
OTOH if UA offered something like a six month global PE pass for $2,500 with a $300 co-pay per one-way trip, that might be interesting to many here (and UA too!)
Interesting topic, I (especially now) can't swing the inflated figures that a lifetime J pass would cost, but I'd seriously consider it if I could even if it were a stretch: I'm one of those who can routinely find jobs working from anywhere that there's network connectivity and now that I'm starting to see what's available out there I am strongly considering just living elsewhere a month at a time. There's some dollar value associated with that, especially doing it for years on end and also having to be at client sites every so often which would mandate more flights than just 12 RT's per year.
Then again I'm just fine in probably anyone's PE product at this point even for TATL or TPAC and I'd happily pay anything close to affordable on a deal for that class.
Earlier this AM I received an email from QF stating they're effectively shutting down their international flights at the end of the month through at least the end of May and grounding all their 747s, 380s, and 787s. I cite this when the storm passes - and it will pass - all carriers are going to have a chicken-n-egg problem when it comes to restarting their networks. On one hand the carriers will need customer demand at a critical mass to make flying break-even, let alone profitable. On the other customers will need the scope and breadth of a wide network that actually flies to where they need to go. This is where the idea of a "pass" comes into the equation: it allows heavy use customers who - to put it bluntly - would otherwise be unprofitable in 80%+ load factors, to kick UA a large sum of cash NOW and UA can service such customer's large travel appetite with seats that would have otherwise spoiled.
While I think the lifetime idea is the most interesting, I also think it is the riskiest for all involved. Not saying I would not consider it but rather I question UA's management's commitment to remembering their promises once the skies clear and good times return. I suppose there are various ways to work around that (e.g. liquidated damages) but still, perhaps the simplest and most practical way forward is a limited time pass. If it turns out to be a success for all parties involved, UA can always reoffer it again at a future date. If LF's bounce back strong in a year or two then the program can quietly sunset.
Anyways my point from all of this is I'd be curious to see if UA were to offer a term (or even lifetime) "pass subscription" for travel. Think it would be neat if one could customize it based on what mattered to them - for example:
.
- Minimum A/P? 0 days? 3? 7? etc.
- Economy / First / PremiumPlus / Polaris
- Underlying fare class (i.e. last seat availability or more restrictive)
- Geography (lower 48, West Coast, Hawaii, Australia, Global, etc.)
- Pass duration (3 / 6 / 12 / 24 months)
- Copays (i.e. pay more upfront to pay less/none per flight or pay less upfront but more per flight)
- Companion add-on for [ $x ]
- [ ? ]
Last edited by J.Edward; Mar 19, 2020 at 9:02 am