topic Re: AA changes coming in March... in Credit Cards

Re: AA changes coming in March...

yfan — Wed, 18 Nov 2015 16:18:41 GMT

Maybe I'm behind the curb here, but what exactly are these changes that AA announced?

Re: AA changes coming in March...

Open123 — Wed, 18 Nov 2015 16:35:17 GMT

@yfan wrote:
Maybe I'm behind the curb here, but what exactly are these changes that AA announced?

Also, AA will begin to adopt more of a revenue based program, not unllike the ones already adopted by Delta, UA, etc...

*Disclaimer* While the above charts all orginate from American Airlines, the images procurred were not from my own efforts, but imaged from "theboardingarea.com."

Re: AA changes coming in March...

mongstradamus — Wed, 18 Nov 2015 18:20:53 GMT

I used almost all of my aa miles i had for trip in january on cathay :-) I have some left over miles to see if i can upgrade from business on cathay to first , thats all i have left with aa. It was bound to happen though since united and delta already nerfed the value of their miles.

Re: AA changes coming in March...

gdale6 — Wed, 18 Nov 2015 18:49:41 GMT

AA will also be changing the way you earn miles to a model based on how much you spend so IMO the program is worthless unless you are a business traveler or a rich individual flying first class. http://money.cnn.com/2015/11/17/news/companies/american-airlines-frequent-flyer-rewards/

Re: AA changes coming in March...

CreditCuriosity — Wed, 18 Nov 2015 19:07:34 GMT

@gdale6 wrote:
AA will also be changing the way you earn miles to a model based on how much you spend so IMO the program is worthless unless you are a business traveler or a rich individual flying first class. http://money.cnn.com/2015/11/17/news/companies/american-airlines-frequent-flyer-rewards/

Yep peeople that fly a ton with regards to business travel on AA airlines or high spenders that fly a ton will have the best benefit the most from this change. I believe I read this one or marketwatch one the other day.

Re: AA changes coming in March...

FinStar — Wed, 18 Nov 2015 19:52:43 GMT

@CreditCuriousity wrote:
@gdale6 wrote:
AA will also be changing the way you earn miles to a model based on how much you spend so IMO the program is worthless unless you are a business traveler or a rich individual flying first class. http://money.cnn.com/2015/11/17/news/companies/american-airlines-frequent-flyer-rewards/
Yep peeople that fly a ton with regards to business travel on AA airlines or high spenders that fly a ton will have the best benefit the most from this change. I believe I read this one or marketwatch one the other day.

Excactly CC.

Open - sorry for the derailment on your thread and thanks for providing your perspectvie. I hope that what you've shared helps others in deciding the best route given the upcoming 2016 AA changes.

Re: AA changes coming in March...

Anonymous — Wed, 18 Nov 2015 19:54:11 GMT

Let's try to keep this on topic and play nice.

Re: AA changes coming in March...

happypill — Wed, 18 Nov 2015 20:05:00 GMT

I believe the changes are mainly to the earning side of the equation. For those with points already banked, I think they changed some of their redemption values for international flights, but I didn't see it as a major nerf for mailes already earned.

I will say that I greatly prefer cash/statement credit/gift card type redemptions these days where you don't have to accumulate a lot of points. I've had 100k+ AA points sitting in my account for about 5 years (around 150k now), and I've tried to use them many many times to book a vacation or something, but each time I come away feeling like I'm not getting good value for the points so I end up paying normally. Miles programs really don't work that well for me because I can't plan way in advance and I'm usually not too flexible on my travel dates.

When I read about people getting 3, 5, 7+ cents per mile from airline points or transfers from MR or UR, I always want to ask them how far in advance did you have to book? Did you have to travel on a Wednesday rather than a Friday? Did you compare your value to the "rack" rate or did you also compare your value against sites like Hotwire, Priceline, Orbits, Expedia, Kayak, etc.?

Overall, changes to the AA program are pretty neutral to me. I'll probably earn more points under the new system, but I really benefit from traveling on the corporate dollar. When paying myself, I tend to prefer other airlines. I just need to find a way to get decent value and redeem the points I already have.

Re: AA changes coming in March...

FinStar — Wed, 18 Nov 2015 21:28:58 GMT

Starting in 2016, we'll make changes to the American Airlines AAdvantage® program. We're evolving to build a rewarding program for all members while giving our best customers access to our most exclusive benefits. These updates will roll out in phases over time. We'll keep you updated as we implement these changes.

Earning award miles

In the second half of 2016, award miles earned from flying will be calculated differently to reward you when you spend more. When traveling on flights marketed by American, you'll earn miles based on the price paid for your ticket (base fare plus carrier-imposed fees, excluding any government-imposed taxes and fees), multiplied by five (5) for AAdvantage® members. If you reach elite status, you’ll earn award miles at higher rates. Plus, as a Citi® / AAdvantage® credit cardmember or an AAdvantage® AviatorTM MasterCard® cardmember, you will continue to earn additional bonus miles on American Airlines purchases when you use your AAdvantage® credit card.
How award miles will be calculated »

Earning award miles for travel on flights marketed by partner airlines will be based on a percentage of the flight distance and the fare class purchased. We'll have more information about earning on partner airlines in 2016.

Until the new award mile earning structure takes effect, you'll continue to earn miles based on the distance flown. In addition, we're extending our 2015 AAdvantage bonus miles promotion that allows you to earn more bonus miles when you purchase and fly on a First or Business Class ticket on American and select airlines.
2015 AAdvantage bonus miles promotion »

Award redemption changes

We're adjusting existing award levels for award tickets redeemed on March 22, 2016 and beyond due to changes to market pricing and demand. Award levels on some routes, such as flights to Europe and other international destinations, will increase. Award levels on other routes, like flights to popular destinations in Mexico, the Caribbean and Central America, will decrease. Plus, you'll be able to redeem MileSAAver® awards for as low as 7,500 miles one-way (plus any applicable taxes and carrier-imposed fees) for flights 500 miles or less.
More about award level changes on American »
More about award level changes on partner airlines »

Earning elite status

On January 1, 2016, elite-qualifying points will be removed from our qualifying structure, and elite status will be based on Elite Qualifying Miles (EQMs) or Elite Qualifying Segments (EQSs). The membership year is also changing. Beginning with the 2017 membership year, elite status will be valid through January 31 of the following year.
How you'll earn elite status in 2016 »

We'll continue to keep you updated as we get closer to implementing these changes to the AAdvantage program. We appreciate your continued loyalty.

Sincerely,

Suzanne L. Rubin
President, AAdvantage Loyalty Program

Re: AA changes coming in March...

Anonymous — Wed, 18 Nov 2015 23:25:02 GMT

@CreditCuriousity wrote:
@gdale6 wrote:
AA will also be changing the way you earn miles to a model based on how much you spend so IMO the program is worthless unless you are a business traveler or a rich individual flying first class. http://money.cnn.com/2015/11/17/news/companies/american-airlines-frequent-flyer-rewards/
Yep peeople that fly a ton with regards to business travel on AA airlines or high spenders that fly a ton will have the best benefit the most from this change. I believe I read this one or marketwatch one the other day.

I like these new changes,,,, I will have another 300K in one year... fantastic

Re: AA changes coming in March...

Anonymous — Wed, 18 Nov 2015 23:25:58 GMT

Finstar, you are on the run, I got the same email.

Re: AA changes coming in March...

FinStar — Wed, 18 Nov 2015 23:44:14 GMT

@Anonymous wrote:
Finstar, you are on the run, I got the same email.

Do you currently have any of the Citi AA cards? I bit the bullet yesterday on the personal one vs the business one (whoopsie - bad Finstar!). 50K offer either way!

Re: AA changes coming in March...

Anonymous — Thu, 19 Nov 2015 00:34:23 GMT

@FinStar wrote:
@Anonymous wrote:
Finstar, you are on the run, I got the same email.
Do you currently have any of the Citi AA cards? I bit the bullet yesterday on the personal one vs the business one (whoopsie - bad Finstar!). 50K offer either way!

Yes, I have the Citi AAdvantage Elite card... I already collected around 300K miles and with some travels lately I only have 150K left, but I have a long flight will i will collect more miles at the end of this year... aja, you got a AA card? ,,,, did you hit a home run Finstar? speak now ...LOL

Re: AA changes coming in March...

Open123 — Thu, 19 Nov 2015 01:43:52 GMT

@FinStar wrote:
Open - sorry for the derailment on your thread and thanks for providing your perspectvie. I hope that what you've shared helps others in deciding the best route given the upcoming 2016 AA changes.

No need for apologies, FinStar!

As with any discussion in life, I've always felt deviations (having been a part of many myself) were a natural progression of most threads; and, more often than not, serve more to enhance rather than detract from a topic. Personally, I appreciate the added "color" when it occurs.

Re: AA changes coming in March...

Open123 — Thu, 19 Nov 2015 01:57:05 GMT

@happypill wrote:
Overall, changes to the AA program are pretty neutral to me. I'll probably earn more points under the new system, but I really benefit from traveling on the corporate dollar. When paying myself, I tend to prefer other airlines. I just need to find a way to get decent value and redeem the points I already have.

When it's my own money, I just looking for the best fare for my cabin preference. Regadless of status, whatever that Airline happens to be, I'll purchase.