Will UA restore the 500 mile minimums for elites?
#76
Join Date: Feb 2006
Programs: HH Silver, MR Plat Prem & LT Plat, Hyatt Plat,SPG Plat, Hertz PC, National EE, UA 1K
Posts: 3,407
I just decided to do something about it (WRITE) instead of just taking my business elsewhere.
We will see where it goes for this 1K!
We will see where it goes for this 1K!
#77
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
Here's my letter.
Hello-
I've been a loyal UA flyer for almost 4 years, and have, in fact, increased my UA flying every year. This year I already have enough flights booked to retain my 1K status.
However, this year I qualified for Platinum status on American Airlines. This is primarily because I switched to AA for my itineraries involving short flights after United dropped 500 mile minimum RDM and EQM.
I realized that I miss many things about UA by flying American, such as E+ seating. However, I will continue to fly AA while they offer 500 mile minimum. It just doesn't make sense to fly UA LAX-ORD-MKE when American offers me 1732 more RDM (with Platinum bonus miles) and 866 more EQM than United!
I was lamenting to my co-worker that I miss some things about UA, and he told me I should let UA know that this policy, unmatched by AA and recently re-instated by CO, is costing UA business.
I've been a loyal UA flyer for almost 4 years, and have, in fact, increased my UA flying every year. This year I already have enough flights booked to retain my 1K status.
However, this year I qualified for Platinum status on American Airlines. This is primarily because I switched to AA for my itineraries involving short flights after United dropped 500 mile minimum RDM and EQM.
I realized that I miss many things about UA by flying American, such as E+ seating. However, I will continue to fly AA while they offer 500 mile minimum. It just doesn't make sense to fly UA LAX-ORD-MKE when American offers me 1732 more RDM (with Platinum bonus miles) and 866 more EQM than United!
I was lamenting to my co-worker that I miss some things about UA, and he told me I should let UA know that this policy, unmatched by AA and recently re-instated by CO, is costing UA business.
#78
Join Date: Feb 2005
Location: SFO
Programs: UA Silver, Marriott Lifetime Titanium
Posts: 1,330
For what it's worth, many posts recently on UA FT have been about being 200 or 300 miles short of making the next level of elite status. Those 500 miles add up quickly. And on the other side of that coin, so do the losses from not having them.
I have requal'd for '09 already. However, I still have many more months of flying before the end of '08. Because of the loss of the 500 mile mins, I won't make it to 125k, and thusly, won't get my extra SWUs. My incentive to continue to fly UA for the remainder of the year? Zero.
I figure if I stay with UA in 2009, I will earn roughly about 8,600 flown miles for my trip portions flown in between SMF and SFO (86 mls. each way) annually. Almost all of my flying will be on the West coast. Under the old system, I was guaranteed 50,000 miles for my trips through SFO. I'm getting screwed, and not in a good way.
This is complete and utter bulls*%t. And...no idle threat here...I will book away from UA if they stand with US Air on this. I'm not threatening to never fly UA again. But I will kiss 1K status goodbye. BFD. It's a crap benefit unless you live in a hub or fly overseas a lot.
Bravo! Well said and well spoken! ^^^
I have requal'd for '09 already. However, I still have many more months of flying before the end of '08. Because of the loss of the 500 mile mins, I won't make it to 125k, and thusly, won't get my extra SWUs. My incentive to continue to fly UA for the remainder of the year? Zero.
I figure if I stay with UA in 2009, I will earn roughly about 8,600 flown miles for my trip portions flown in between SMF and SFO (86 mls. each way) annually. Almost all of my flying will be on the West coast. Under the old system, I was guaranteed 50,000 miles for my trips through SFO. I'm getting screwed, and not in a good way.
This is complete and utter bulls*%t. And...no idle threat here...I will book away from UA if they stand with US Air on this. I'm not threatening to never fly UA again. But I will kiss 1K status goodbye. BFD. It's a crap benefit unless you live in a hub or fly overseas a lot.
Bravo! Well said and well spoken! ^^^
Last edited by iluv2fly; Sep 28, 2008 at 6:09 pm Reason: merge
#79
Join Date: Feb 2008
Location: SFO
Programs: UA 1K/MM
Posts: 234
Well, it is costing me about 3200 miles this year. Lots of midwest and so cal trips from SFO.
As a result, I paid for my vacation ticket to Cabo and used miles for my sister's only to make certain I make status this year. This one change would have cost me.
Absurd to be buying a ticket for my vacation when I have 280,000 in my account, but that's what United reduced me to. Which I'm sure was the entire point of the policy.
As a result, I paid for my vacation ticket to Cabo and used miles for my sister's only to make certain I make status this year. This one change would have cost me.
Absurd to be buying a ticket for my vacation when I have 280,000 in my account, but that's what United reduced me to. Which I'm sure was the entire point of the policy.
Last edited by eyevision; Sep 26, 2008 at 4:49 pm
#80
Join Date: Mar 2008
Location: SFOAK
Programs: UA 1K, Alaska MVP Gold, Marriott Platinum, Avis President's Club
Posts: 132
This is the response I got from the Vice President of Mileage Plus:
mrzim,
As you note, the airline industry is fiercely competitive. We are aware of Continental’s actions, and have been monitoring the effect of our change.
Thank you for sending your email and letting me know of your concerns around this policy. As I’m sure you are aware, airline profitability makes investment in product difficult. We are forced to look at allocation of spend to make targeted investments. For example, as we invest in truly lie flat seats in our international business class across our fleet, this is being funded through reallocation of spend in other areas – such as the 500-mile accrual policy change.
Every airline is making decisions on what products to bring to market and what customers are willing to pay for, and we will take your concern around this policy into account.
Best regards,
Robert
mrzim,
As you note, the airline industry is fiercely competitive. We are aware of Continental’s actions, and have been monitoring the effect of our change.
Thank you for sending your email and letting me know of your concerns around this policy. As I’m sure you are aware, airline profitability makes investment in product difficult. We are forced to look at allocation of spend to make targeted investments. For example, as we invest in truly lie flat seats in our international business class across our fleet, this is being funded through reallocation of spend in other areas – such as the 500-mile accrual policy change.
Every airline is making decisions on what products to bring to market and what customers are willing to pay for, and we will take your concern around this policy into account.
Best regards,
Robert
#81
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
That kind of response is ridiculous. The 500 mile change can't be giving them liquidity to spend on lie-flat seats.
Responses like that need to be countered with the fact that the 500 mile change is COSTING UA revenue. And I know for a fact that it personally has caused me to change my travel habits negatively for UA.
Responses like that need to be countered with the fact that the 500 mile change is COSTING UA revenue. And I know for a fact that it personally has caused me to change my travel habits negatively for UA.
#82
Join Date: Feb 2005
Location: SFO
Programs: UA Silver, Marriott Lifetime Titanium
Posts: 1,330
It's wonderful to see some of you sending your letters. However, the lack of overall hue & cry over this is quite surprising. There is no reason why anyone here who earns UA MP miles should not write a letter. Just because the removal of this one benefit may not directly effect you, it doesn't mean something else UA tries to yank won't. If you say nothing, it gives them carte blanche to do just that. I and others need your help now and I have and will continue to support you whenever I can.
The lack of outrage shown towards UA sticking to this incredibly shortsighted policy tells me that they can (and will) do whatever they want to your benefits, and if you don't like it, then TS.
I thought we were a little more vocal, a little more outspoken, a little more tight-knit than that.
The lack of outrage shown towards UA sticking to this incredibly shortsighted policy tells me that they can (and will) do whatever they want to your benefits, and if you don't like it, then TS.
I thought we were a little more vocal, a little more outspoken, a little more tight-knit than that.
Last edited by ExCrew; Sep 27, 2008 at 2:14 pm
#84
A FlyerTalk Posting Legend
Join Date: Apr 2004
Location: GVA (Greater Vancouver Area)
Programs: DREAD Gold; UA 1.035MM; Bonvoy Au-197; PCC Elite+; CCC Elite+; MSC C-12; CWC Au-197; WoH Dis
Posts: 52,140
It's funny that to me, your argument specifically shows why the 500-mile minimum is bad. I was sort of ambivalent before - now I see that the change may actually be a good one.
#85
Join Date: Nov 2006
Location: SFO South Bay
Programs: UA 2MM
Posts: 3,052
Well I am quite impressed with this response.
1. It clearly not a canned response. It hits exactly the issue you wrote about
2. The writer took the time to explain the situation and even show the trade offs UA is making.
Contrary to what CPMaverick's comments, acrued miles do hit UA's profitability. Each mile that we add to our accounts forces UA to recognize a potential future expense on their books. This reduces their current profitability as reported in their financial documents. Yes, there is no dollar flow for UA when they give RDMs, but as most know, dollar flow is not the basis for GAAP reporting.
(reflection: good god, I sound like a UA appologist! Not my intention!! I bad mouth UA so much for their shortcomings, I feel it is important to recognize when they do something right)
1. It clearly not a canned response. It hits exactly the issue you wrote about
2. The writer took the time to explain the situation and even show the trade offs UA is making.
Contrary to what CPMaverick's comments, acrued miles do hit UA's profitability. Each mile that we add to our accounts forces UA to recognize a potential future expense on their books. This reduces their current profitability as reported in their financial documents. Yes, there is no dollar flow for UA when they give RDMs, but as most know, dollar flow is not the basis for GAAP reporting.
(reflection: good god, I sound like a UA appologist! Not my intention!! I bad mouth UA so much for their shortcomings, I feel it is important to recognize when they do something right)
#86
A FlyerTalk Posting Legend
Join Date: Apr 2004
Location: GVA (Greater Vancouver Area)
Programs: DREAD Gold; UA 1.035MM; Bonvoy Au-197; PCC Elite+; CCC Elite+; MSC C-12; CWC Au-197; WoH Dis
Posts: 52,140
#88
Join Date: Nov 2006
Location: SFO South Bay
Programs: UA 2MM
Posts: 3,052
That is why many countries, USA included, are moving towards IFRS reporting. IMO GAAP is a legal way of cooking the books.
But in any case, today UA must add this liability, and must reduce income as a result. So the point the UA employee makes is valid. A bit of a stretch, to be sure: I bet the savings in reported income from the 500 mile change will cover less than 1% of the costs of the new seats!!!
#89
Join Date: Jun 2007
Posts: 4,639
Not necessarily. Although UK based, I fly UA domestic short sectors too, especially in CA (still in mourning after death of my favourite SNA-LAX).
It also affects short intra-EU flights on *A partners.
For quite some time UA doesn't give a monkey for alien MP members, but I'll write anyway. Just to be in peace with myself and other FTers.
It also affects short intra-EU flights on *A partners.
For quite some time UA doesn't give a monkey for alien MP members, but I'll write anyway. Just to be in peace with myself and other FTers.
Given the complaints I see here, I'd be happy if United went under, until I realise that I just lost $350.
Last edited by stupidhead; Sep 28, 2008 at 7:59 pm
#90
Join Date: Sep 2002
Programs: The opinions expressed here are mine alone and do not necessarily reflect the airlines I worked for.
Posts: 1,894
Just sent an email to Premier Executive Voice on this issue as well as BOB in Domestic BUSINESS Class.