UA needs cash - idea -- earn status / miles for unflown / cancelled flights
Mar 31, 2020, 8:54 am
#16
Join Date: Jul 2013
Location: SJC
Programs: Southwest, Alaska, United, American Airlines
Posts: 994
The concept may be a nice idea for some customers*, but probably detrimental to United from an accounting perspective since the airline loses the benefit of future ticket sales revenues (which may impact covenants under various agreements).
Under accounting rules, airlines must fully realize ticket-related revenue on their books at the time transportation is provided. For example, United can use much of the cash on a $1,000 base fare ticket for a September trip right away, but for accounting purposes the income and expenses are both booked in September (Q3). If there's no underlying transportation obligation involved, UAL would have to account for the money in the quarter the transaction is made (for today, Q1). It's far more advantageous for United to account for the money in Q3 than today.
Under accounting rules, airlines must fully realize ticket-related revenue on their books at the time transportation is provided. For example, United can use much of the cash on a $1,000 base fare ticket for a September trip right away, but for accounting purposes the income and expenses are both booked in September (Q3). If there's no underlying transportation obligation involved, UAL would have to account for the money in the quarter the transaction is made (for today, Q1). It's far more advantageous for United to account for the money in Q3 than today.
Mar 31, 2020, 12:29 pm
#17
Join Date: Nov 2001
Location: New York, NY
Posts: 639
just to clarify--I remembered. The term the Service Center used was "marking the ticket coupon as used" - that meant that even though the flight was canceled, I wouldn't be eligible for a refund, but I would receive the mileage credit for the segment
Mar 31, 2020, 1:30 pm
#18
Join Date: Oct 2004
Location: Clinging to the edifices of a decadent past from the biggest city in America nobody really cares about.
Programs: (ಠ_ಠ)
Posts: 9,077
Datapoint - AA offering a 100% bonus on bought miles. Don't think I've ever seen it that low.
Would note from my redemption experience as a GS / 1K / EXP in the age of dynamic pricing is AA is consistent about offering sub 10k awards - generally 5-8k - for off peak flights for close-in bookings vs. UA's flat out 15k for domestic Y close in awards. Take away is AA seems to master the art of give and take vs. UA where it appears, at least to me, to be just take.
Moral of the story: for those who have a use of AA awards, there's still value in their currency. Not so much with UA, even with an insane bonus.
Karma's a what, Luc?
Would note from my redemption experience as a GS / 1K / EXP in the age of dynamic pricing is AA is consistent about offering sub 10k awards - generally 5-8k - for off peak flights for close-in bookings vs. UA's flat out 15k for domestic Y close in awards. Take away is AA seems to master the art of give and take vs. UA where it appears, at least to me, to be just take.
Moral of the story: for those who have a use of AA awards, there's still value in their currency. Not so much with UA, even with an insane bonus.
Karma's a what, Luc?
Apr 1, 2020, 10:48 pm
#20
Join Date: Feb 2012
Location: The place where it gets so hot in the summer some planes can't take off.
Programs: Marriott LT Titanium, WoH Globalist, National EE, United Platinum
Posts: 1,446
Maybe they could sell lifetime Polaris passes for $1,000,000 each to raise cash..... 
Apr 6, 2020, 8:14 am
#21
Join Date: Jan 2009
Location: WAS
Programs: AA EXP2M, DL 1MM DM ext, UA PP <=> HH G/Marr PE/Hyatt G/IHG P FT RA ( Recovering Addict)
Posts: 4,596
Datapoint - AA offering a 100% bonus on bought miles. Don't think I've ever seen it that low.
Would note from my redemption experience as a GS / 1K / EXP in the age of dynamic pricing is AA is consistent about offering sub 10k awards - generally 5-8k - for off peak flights for close-in bookings vs. UA's flat out 15k for domestic Y close in awards. Take away is AA seems to master the art of give and take vs. UA where it appears, at least to me, to be just take.
Moral of the story: for those who have a use of AA awards, there's still value in their currency. Not so much with UA, even with an insane bonus.
Karma's a what, Luc?
Would note from my redemption experience as a GS / 1K / EXP in the age of dynamic pricing is AA is consistent about offering sub 10k awards - generally 5-8k - for off peak flights for close-in bookings vs. UA's flat out 15k for domestic Y close in awards. Take away is AA seems to master the art of give and take vs. UA where it appears, at least to me, to be just take.
Moral of the story: for those who have a use of AA awards, there's still value in their currency. Not so much with UA, even with an insane bonus.
Karma's a what, Luc?
In the depths of the great recession I bought US miles during Grand Slam for 0.4c each - that was worth while.when the value one got was 2-3c
Now AA uses miles as a proxy for 1c cost - and are selling to us for 1.7c - No thank you - Don't believe AA either - it is worse than UA at times on awards.
Apr 6, 2020, 8:17 am
#22
Join Date: Jan 2009
Location: WAS
Programs: AA EXP2M, DL 1MM DM ext, UA PP <=> HH G/Marr PE/Hyatt G/IHG P FT RA ( Recovering Addict)
Posts: 4,596
I have a few trips I have to go this year - unavoidable & mostly still not canceled at this time - Goodbye UA, Hello DL / VS.
WineCountry, I am familiar with ORC being widely known for changed routings and have benefited from this myself, I just haven't seen it publicized for incomplete routings, such as what I experienced (ending a trip mid-trip but receiving credit for the remainder and finding my own way to my final destination). SAP
Last edited by WineCountryUA; Apr 6, 2020 at 10:37 am Reason: merged consecutive posts by same member
Apr 6, 2020, 9:09 am
#23
FlyerTalk Evangelist
Join Date: Mar 2010
Location: DAY
Programs: UA 1K 1MM; Marriott LT Titanium; Amex MR; Chase UR; Hertz PC; Global Entry
Posts: 10,159
Wasn't quite sure where to post this, but when I was looking for a flight on United.com, and navigated away from the search results page, there was a pop up asking me why I did not make a purchase.
I indicated "other", and noted "no upgrade space available" in the open text box.
There were several other options - Too expensive, schedule not convenient, etc.
I haven't seen this before.
I indicated "other", and noted "no upgrade space available" in the open text box.
There were several other options - Too expensive, schedule not convenient, etc.
I haven't seen this before.
Apr 6, 2020, 7:31 pm
#24
FlyerTalk Evangelist
Join Date: Mar 2002
Location: Saipan, MP 96950 USA (Commonwealth of the Northern Mariana Islands = the CNMI)
Programs: UA Silver, Hilton Silver. Life: UA .57 MM, United & Admirals Clubs (spousal), Marriott Platinum
Posts: 15,051
WineCountry,
I am familiar with ORC being widely known for changed routings and have benefited from this myself, I just haven't seen it publicized for incomplete routings, such as what I experienced (ending a trip mid-trip but receiving credit for the remainder and finding my own way to my final destination).
SAP
I am familiar with ORC being widely known for changed routings and have benefited from this myself, I just haven't seen it publicized for incomplete routings, such as what I experienced (ending a trip mid-trip but receiving credit for the remainder and finding my own way to my final destination).
SAP
I actually think United has the capability to provide mileage for flights when canceled if you are willing to give up the value of the ticket. I had a situation a few years ago where a flight was canceled on a cheap ticket - I needed the credit to hit a threshold and the Mileage Plus service center offered to move the ticket to 'used' status to allow the credit to be applied. I was given the choice of spend the ~$100 for the 1 segment and 500 mile minimum or the refund, but not both
Its worth asking...
Its worth asking...
Perhaps the principal thread on this topic contains info on the internal UA computer reference for such situations? The term "mark the ticket coupon as used" seems worth remembering.