Air Miles - us ethem while you can

[chilli13]

steve,

 

 

 

if you can get me FF seat from LON-BKK over xmas say 21.dec-6.jan I'm in. I know I couldn't get it on *alliance so if oneworld deliverers thumps up for them. oh economy class seats are ok as well ;-)

 

just make sure you can actually transfer the miles to 'friends' - even when you're not on the very same flight...

 

 

 

anyway interesting news on the future of FF programmes, but I seriously daoubt it'll happen anytime soon?

 

 

 

just PM me when you have the seat for me & I'll pay you the 25% or so equalent with pleasure!

[shygye]

Well those "experts" were wrong about when FF programs began. It was started by AA AFTER deregulation of the US airlines.

 

 

 

Remember the corporate officers that make the decisions on the airline also benefit from the FF miles.

 

 

 

As I said before, the airlines can make the FF program cost near zero by reducing award seats. It is just the incremental cost of a person occupying an otherwise empty seat. AA is already charging $50 USD for award tickets less than 21 days out.

[JJsushi]

 

 

The key issue here is that corporations dictate the terms they are prepared to move sometimes hundreds of millions of dollars of tickets from carrier to carrier. Airlines already know there system of pricing is f****d but they are not sure how to handle it. As a result of this huge downturn, nothing is sacred - The CEO of Americans parent has said as much - they are going to have to change the fundamentals and everything is under the microscope as far as costs go. Airlines used to make money on their kitchen operations but how many of them still have them?

 

[color:purple]

 

True nothing is sacred yet there are some things that are at the botttom of the menu. The fundamentals that the airlines are talking about primarily concern fare structure and wages, not their FF prgrams. Yes, ther is some fat that can be trimmed from these programs but I seriously doubt if they will kill the programs. What they will more than likely do is alter the benefits received by the FF's which has already been occuring in the last 2 years to date.

 

The programs are great revenue and marketing vehicles for the carriers. What you may see is some carriers with marginal programs sell or outsource their programs to stronger carriers. You may also see the airlines spin the FF programs off into independent companies. I have heard this from a Sr VP at UAL's Mileage Plus program who is their primary negotiator in the Star alliance network.

 

Personally I think you will see the airlines eliminate 3 class flights and only have Coach and Biz. You will also only see upgrades allowed on M class and higher coach tickets and award levels will be 100k for coach from the US to Asia.

 

I am a mere 100k flyer every year so I don't spend as much time in the air as you but I do full well take advantage of my FF benefits when I can and stay on top of industry changes.

[jp1]

I'd be more than happy with someone wanting to offer 50% of face value - I had thought nearer 25-30%

 

 

 

SINSteve,

 

 

 

you're right. Just asked somebody today about the value of the FF miles for the airlines. It depends on the airline but the value is somehow btw. 25 and 33%.

 

 

 

 

[Old Hippie]

As an airline insider my self, I can tell you that FF programs are a major drain. O.k. to reward for frequent travel, but for credit cards, hotel stays, car rentals etc... rediculis! It is giving the store away when they need every dime to stay afloat (largely due to bad management). Almost all Major airlines are trying to get there employees to take major pay cuts, yet will not stop the run away use of FF miles. Last year the industry took a major beating, yet FF miles were cashed in in record numbers, no wonder they can't make money. I cannot see giving miles for anything other than actually flying on a particular carrier. Sorry for the rant, but I hate the the thought of a pay cut just so some jack ass can go to Cleavland for $25usd less.

[shygye]

Sorry for the rant, but I hate the the thought of a pay cut just so some jack ass can go to Cleavland for $25usd less.

 

 

 

Do you like the thought of a pay cut so the corporate officers can get million dollar bonuses?

 

 

 

I don't know about UAL, but AA makes money selling FF miles to credit card companies, flower companies, etc. I know right after 9/11 the airlines made it easy to get award tickets, but now it is really hard to find award tickets.

[Old Hippie]

Exactly the point of my rant, well, part of it anyway. Award miles should be given for flights only! And yes, I hate the fact that the assholes who have nearly bankrupted UAL also received hugh bonuses for doing so! We should find out this week what is going to be done to try and avoid Bankruptcy and what it will cost us to get government loans...here I go again! Basically, the frequent flier programs are currently hurting the industry as a whole, and needs to be revamped or eliminated all together.