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US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'

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Old Nov 12, 2013, 2:24 pm
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Last edit by: aztimm
Note:

There is an existing thread in the AA forum that may be useful to US and AA Flyertalkers:
US-AA Merger: Just the Facts thread

As facts become posted, that should be the place to look.

Merger discussion, speculation, and other questions can be directed here, or the similar thread in the AA forum:
MERGER: US and AA 9 Dec 2013 and implications for AA flyers (new)

AA - US Merger Agreement / Announcement / DOJ Action Discussion (consolidated, and now closed to new posts)
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US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'

 
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Old Mar 2, 2013, 8:25 pm
  #361  
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Originally Posted by SS255
United gave all Mileage Plus members a one-time adjustment to include all non-BIS EQM's earned up until December 31, 2011. The members of both programs started 2012 on a level playing field until the programs merged, and starting 1/1/12, only BIS miles count toward Million Miler status.

The downside to this for many PMUA Mileage Plus members who were close to 2MM prior to 2012 is that UA revoked the lifetime United Club membership which they used to give at 2MM. A lot of these people had this particular goal in mind, so they were flying UA metal when they could have been flying *A partner metal.

In addition to this, the 1MM'ers lost their 2 annual RPU's, but in return are now able to gift their exact annual status to a spouse or SO living at the same address. Of course, if you are single or your spouse is also a MM'er/has earned status independently of you, the loss of the RPU's is huge.

Since US's MM program is very weak, my guess is that the AAdvantage million miler program will not change, unless a 75K tier is added to the AAdvantage elite program. The big question is how Dividend Miles will get counted toward our lifetime mileage counter. I personally know someone who earned 1MM status primarily through credit card spend, and it seems rather unfair that she gets the same advantages as a DM member who flew 1MM BIS (and possibly also has an additional several hundred thousand in spend on their US credit card). You're talking about almost 30 years' worth of lifetime miles getting counted differently for long-time DM members.
The problem is that US has sold miles rather profligately- those count as lifetime miles too, no? I dare say there are FTers who've bought or otherwise accrued (sharing, GS promos, TIB) a million miles or more on US who have never flown a mile in a seat. Should they get lifetime Gold or Platinum on AA?

(I imagine our Australian contingent would be rather pleased at lifetime oneworld Sapphire for buying cheap US miles, but QF might not be.)
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Old Mar 2, 2013, 8:41 pm
  #362  
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Originally Posted by eponymous_coward
The problem is that US has sold miles rather profligately- those count as lifetime miles too, no? I dare say there are FTers who've bought or otherwise accrued (sharing, GS promos, TIB) a million miles or more on US who have never flown a mile in a seat. Should they get lifetime Gold or Platinum on AA?

(I imagine our Australian contingent would be rather pleased at lifetime oneworld Sapphire for buying cheap US miles, but QF might not be.)
purchased miles though USDM do NOT count towards any qualifying miles or status. Purchased miles though AA however DID count until they stopped that.
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Old Mar 2, 2013, 11:02 pm
  #363  
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Originally Posted by LHR/MEL/Europe FF
purchased miles though USDM do NOT count towards any qualifying miles or status. Purchased miles though AA however DID count until they stopped that.
Exactly- so a system where US lifetime miles from all sources are counted for a one-time boost (as opposed to just US BIS miles) would end up adding some folks.

I believe AA had a limit of 40K miles via purchase per year before they switched to BIS. US... not so much.

Shoot, I probably have something like 300K+ lifetime miles on US from all sources- despite never having been an elite...
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Old Mar 2, 2013, 11:16 pm
  #364  
 
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Originally Posted by FWAAA
Parker was obviously talking about the Shares debacle (both at US and last year at UA) where the bigger airlines' systems worked and the acquirer was just stupid (as was Smisek) for replacing the UA system
In retrospect it was probably still not the best decision, but I believe a major complication with the HP/US res merger was that US had outsourced its entire IT operation to SABRE in the late '90s as a cost savings measure. So there was essentially no "in-house" expertise on the US side.
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Old Mar 3, 2013, 1:28 am
  #365  
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Originally Posted by eponymous_coward
Exactly- so a system where US lifetime miles from all sources are counted for a one-time boost (as opposed to just US BIS miles) would end up adding some folks.

I believe AA had a limit of 40K miles via purchase per year before they switched to BIS. US... not so much.

Shoot, I probably have something like 300K+ lifetime miles on US from all sources- despite never having been an elite...
my apologies - I see what you mean now.

I don't know if there would be too many people that have bought over 1 million miles - and even then that would only give oneworld ruby which is nothing much for Australian members (most of whom I'd dare say have already acquired their lifetime QF ruby or sapphire (2MM AA equiv) through cheap YUPs on AA anyway!).
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Old Mar 3, 2013, 6:50 am
  #366  
 
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Originally Posted by dtremit
In retrospect it was probably still not the best decision, but I believe a major complication with the HP/US res merger was that US had outsourced its entire IT operation to SABRE in the late '90s as a cost savings measure. So there was essentially no "in-house" expertise on the US side.
Agree that it was a cost-saving measure during a difficult time when money was tight. HP also owned the QIK overlay to SHARES, so in-house expertise with QIK/SHARES may have been another factor when they decided to go with SHARES.
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Old Mar 3, 2013, 9:05 am
  #367  
 
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I'm not sure why people think AA would want to let those non-BIS miles from US count. I thought a few years ago AA sources said they wanted to close that "loophole" and you're talking about re-opening it for a moment. I think I'd be happy if the LT program is allowed to exist as it stands today.
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Old Mar 4, 2013, 12:41 pm
  #368  
 
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Originally Posted by kudzu
Agree that it was a cost-saving measure during a difficult time when money was tight. HP also owned the QIK overlay to SHARES, so in-house expertise with QIK/SHARES may have been another factor when they decided to go with SHARES.
QIK had little if nothing to do with the decsion to go to shares. QIK is also a Sabre product and the interface used for most Sabre non AA customers. SHARES just offered a better over all price. Sabre's deal with US was quite pricey and it was an entire outsourcing deal, and not just res. Sabre no longer offers the type of complete outsourcing deals. Makes since since either way HP--the computer company-- ( and EDS prior t to the buy out) actually did the work. HP themselves handle the IT infrastructure for Sabre and have for some time going back to EDS. It's a bit of complicated mess, but HP actually owns all of Sabre's data centers.
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Old Mar 4, 2013, 3:30 pm
  #369  
 
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Originally Posted by rrgg
I'm not sure why people think AA would want to let those non-BIS miles from US count. I thought a few years ago AA sources said they wanted to close that "loophole" and you're talking about re-opening it for a moment. I think I'd be happy if the LT program is allowed to exist as it stands today.
What will probably happen though is an adjustment for EQM. My understanding is that the current US MM program is BIS only, while AA gives MM credit for all EQM earning flights.
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Old Mar 4, 2013, 5:51 pm
  #370  
 
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Originally Posted by dcAA
What will probably happen though is an adjustment for EQM. My understanding is that the current US MM program is BIS only, while AA gives MM credit for all EQM earning flights.
Not correct. AA is now BIS now and has been for a couple of years ago. that loop hole was closed.
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Old Mar 4, 2013, 6:25 pm
  #371  
 
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The inequity is that is was easy to churn AA Citicards and the bonus miles counted toward LT status. The solution is to create a couple layers above LT plat (50 k tier) - bury them per se.
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Old Mar 4, 2013, 6:26 pm
  #372  
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Originally Posted by grahampros
Not correct. AA is now BIS now and has been for a couple of years ago. that loop hole was closed.
Not quite a couple of years-- more like 16 months.

Originally Posted by AmericanAirlines
Starting December 1, 2011, AAdvantage base miles earned by flying on American Airlines, American Eagle® or the AmericanConnection® carrier or any AAdvantage program participating airline will count towards Million Miler status.
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Old Mar 4, 2013, 6:55 pm
  #373  
 
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Originally Posted by jfinsocal
The inequity is that is was easy to churn AA Citicards and the bonus miles counted toward LT status. The solution is to create a couple layers above LT plat (50 k tier) - bury them per se.
No. There is really no reason to change anything. either you have lifetime in your current program or you dont up the combination. It's not a competition anyway. If you have lifetime you dont really cost anyone anything that also has it. It's more a lame attempt it seems for folks to get lifetime who dont currently have it.
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Old Mar 4, 2013, 7:09 pm
  #374  
 
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LT status matters if they keep the US upgrade system. IO, 100k and 75k tiers will trump AA LT Plt in the upgrade hierarchy. Within the 50k tier active flyers will trump many LT Plt based on 12 month rolling BIS tiebreaker.

We will see what happens.
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Old Mar 5, 2013, 10:16 am
  #375  
 
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I may have posted this before, so accept my apologies.
A poster on the AA site calculated the amount of years it would take to achieve LT status to LT Gold, lowest LT status under the new rules....
It would take TEN years of BIS flying 100,000 miles per year.....
Good Luck if you are starting from scratch !
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