AA tightens Advantage requirements.
- Thread starter WorldTraveler
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Exactly. Avoiding bankruptcy will be impossible for new AA, as the profits so far this year are only $3.1 billion (excl special items). AA's generous AAdvantage program is no doubt why AA filed for Ch 11 in the first place.AANOTOK said:
Just another place for WT to repeat, ad nausem, his mantra of "AA bad, DL good."
OP
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- #33
I'm sure it is hard for you to grasp the concept but companies that can sell their product don't need to give it away.Exactly. Avoiding bankruptcy will be impossible for new AA, as the profits so far this year are only $3.1 billion (excl special items). AA's generous AAdvantage program is no doubt why AA filed for Ch 11 in the first place.
Just another place for WT to repeat, ad nausem, his mantra of "AA bad, DL good."
[/quote
but given that frequent flyer programs are the norm, companies that command higher prices for their product don't need to give away AS MUCH.
and let's be clear that AA knows this reality very well.
while you and others tout how great AA's program is for you, it costs the company money.
I will bet you a healthy chunk of your AAdvantage account balance that AA will have announced a revenue based program in place within a year after their res system cutover, if not before.
the only reason AA hasn't done it is because they can't without a whole lot of expense.
WT SkyMiles gives away plenty of free DL upgrades awards and product it just isn't as well structured as AA and also has inferior partner redemption opportunities. DL gives away Medallion status like free candy, all the new analysts that just joined my firm all got free Platinum Medallion and we aren't even big DL customers. Yes there will be reforms to AAdvantage but they aren't goinh to do the BS DL does like not awarding EQMs for trips on "partners" (you may not be aware but buying a KE F or J ticket earns you ZERO MQMs on DL). AAdvantage provides AA customers value and is profitable to AA.
Josh
Josh
The only thing I'm finding it difficult to grasp is how little you know about AAdvantage (and SkyMiles, for that matter).WorldTraveler said:
I've posted numerous times that Parker will likely implement a revenue-based system ASAP, but once again your ignorance shines thru (your assumption that I don't see a revenue-based system on the way).WorldTraveler said:
No shortage of WT ignorance on display in this thread. Delta waives the MQD requirement for anyone spending $25k on their DL AMEX, which is child's play.
So it looks like DL is willing to give it away.
The only substantive change to AAdvantage qualification for Executive Platinum is aligning the segments required with the other airline programs (120 segments) and you ignorantly proclaim that it's "proof that consolidation is targeting higher fares and reduced perks. AA hasn't reduced any perks, despite your ignorant, uninformed and false claims to the contrary.WorldTraveler said:
OP
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- #37
I never said that you haven't acknowledged that a revenue based program is coming.
I have said that AA can't implement one now and will be forced to accept lower revenue performance because, as long as you have less financial control over your product than your peers, then you will trail them in revenue.
the changes that DL and UA have made and which are not much different from what WN has in concept or what most airlines have is the ability to revenue control your frequent flyer product. not the seats per se but the product itself.
As two who are addicted to the crack of frequent flyer programs, it is doubtful you will get it.
and the big black box that you can't see at DL is the value of what Amex pays DL for miles that have nothing to do with airplane seats - and, hint hint, isn't taxed the way airplane seat seats are taxed.
DL might create status based on the Amex card but that status means nothing until money is spent. and the whole point of a revenue based FF program is to incentivize a customer's revenue maximizing behavior for the company... something that doesn't exist with a miles based program.
On yet another issue, AA is the outlier in the industry and its below average revenue performance shows it.
of course AA's ongoing practice of throwing capacity into int'l markets faster than it can be absorbed certainly helps to drive down RASM but being unable to incentivize the right kind of behavior from customers is no less of a cause
I have said that AA can't implement one now and will be forced to accept lower revenue performance because, as long as you have less financial control over your product than your peers, then you will trail them in revenue.
the changes that DL and UA have made and which are not much different from what WN has in concept or what most airlines have is the ability to revenue control your frequent flyer product. not the seats per se but the product itself.
As two who are addicted to the crack of frequent flyer programs, it is doubtful you will get it.
and the big black box that you can't see at DL is the value of what Amex pays DL for miles that have nothing to do with airplane seats - and, hint hint, isn't taxed the way airplane seat seats are taxed.
DL might create status based on the Amex card but that status means nothing until money is spent. and the whole point of a revenue based FF program is to incentivize a customer's revenue maximizing behavior for the company... something that doesn't exist with a miles based program.
On yet another issue, AA is the outlier in the industry and its below average revenue performance shows it.
of course AA's ongoing practice of throwing capacity into int'l markets faster than it can be absorbed certainly helps to drive down RASM but being unable to incentivize the right kind of behavior from customers is no less of a cause
OP
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- #39
AA's revenue growth has been the worst of the big 4 and only AS had weaker RASM growth.
AA's RASM declined in every global region - the only US carrier to do that and AA had the largest RASM decline in Latin America of any airline in any part of their system in decades.
Even AA's domestic RASM - the strongest part of the US airline system - was well below what other carriers have been posted.
AA's revenue growth is far from anything to right home about.
the reason why AA's NET - NOT GROSS - profits are stronger is because they are not accounting for taxes (neither is UA but DL and WN are) and AA is paying no profit sharing.
Parker is using the same strategy that he used at US; why anyone can't see it is beyond belief, esp. since a lot of people lamented that AA would be remade in the image of US - and that is exactly what is happening.
AA is adding capacity in order to drive down CASM but in so doing is also coming nowhere close to building a viable, premium driven network and is also doing what he is doing because of having the lowest paid employees among the big 4.
Why anyone wants to argue that is not what is happening now when it was apparent during BK that is what he would do is beyond comprehension
AA's RASM declined in every global region - the only US carrier to do that and AA had the largest RASM decline in Latin America of any airline in any part of their system in decades.
Even AA's domestic RASM - the strongest part of the US airline system - was well below what other carriers have been posted.
AA's revenue growth is far from anything to right home about.
the reason why AA's NET - NOT GROSS - profits are stronger is because they are not accounting for taxes (neither is UA but DL and WN are) and AA is paying no profit sharing.
Parker is using the same strategy that he used at US; why anyone can't see it is beyond belief, esp. since a lot of people lamented that AA would be remade in the image of US - and that is exactly what is happening.
AA is adding capacity in order to drive down CASM but in so doing is also coming nowhere close to building a viable, premium driven network and is also doing what he is doing because of having the lowest paid employees among the big 4.
Why anyone wants to argue that is not what is happening now when it was apparent during BK that is what he would do is beyond comprehension
OP
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- #41
no, DL had the highest GROSS operating margin of the majors but a lower NET PROFIT MARGIN because DL accounted for taxes - something AA and UA don't have to do and DL paid profit sharing to the tune of 15% of annual salaries, something that AA employees don't want because they think they will be better off without.
OP
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