Here’s Why American’s AAdvantage Changes Are Terrible

Last night I posted about rumored changes coming to the AAdvantage program in 2016. While the changes haven’t been officially announced, this morning I shared the details of what the supposed new AAdvantage program will look like for 2016 and beyond. This is all based on information shared by the always knowledgable JonNYC.

I shared the program details earlier, and have been taking some time to digest the changes. View from the Wing just posted about these changes, and came to the following conclusion:

Ultimately these changes are probably as good as it was going to get – both in terms of notice (we do get a year warning they’re going to revenue-based earn) and changes (they really aren’t changing the elite program much). At least until any next shoe drops either in terms of award chart changes or restricted program benefits or mileage-earning on ‘basic economy’-type fares.

I’ve gotta be honest… I’d be hard pressed to disagree more. Here’s why:

American is going from first to worst with confirmed upgrades

My single favorite benefit of being an Executive Platinum member is that you earn eight systemwide upgrades for every year you qualify. There are no fare restrictions on these, so they’re hugely valuable.

Next year American will be cutting systemwide upgrades for Executive Platinum members in half, from eight to four. In my opinion this makes American less lucrative when it comes to confirmed upgrades than Delta or United:

Delta Diamond Medallion members receive:

  • Four systemwide upgrades PLUS four regional upgrades
  • OR 12 regional upgrades

United Mileage Plus Premier 1K members receive:

  • Six systemwide upgrades (with fare restrictions)
  • Four regional upgrades
  • An additional two regional upgrades for every 25,000 EQMs, and an additional two systemwide upgrades for every 50,000 EQMs

One could certainly make the argument that American’s systemwide upgrade program is still as good/better than Delta or United. Personally I don’t buy into it, and I don’t think anyone could say “with these changes, American has the best international upgrade program for top tier elites without a doubt.” Which I think almost anyone would have admitted prior to this.

American-Business-Class
Get ready to see less business class on American!

Qualifying for status is getting easier… and that’s not good

Under the new program it’s actually getting significantly easier to qualify for status. Previously American had both elite qualifying miles and elite qualifying points. You needed to earn 100,000 of one or the other to achieve top tier status. That meant you had to fly either 100,000 butt in seat miles or 67,000+ miles in paid premium cabins. But you couldn’t mix-and-match the two.

American-Mileage-Earning-Chart

Now that American is eliminating EQPs as a method of qualifying for status, it’ll be significantly easier to qualify, as you earn EQMs at the following (increased) rates:

  • Full fare first & business class: 3 EQMs per flown mile
  • Discounted first & business class: 2 EQMs per flown mile
  • Full fare economy class: 1.5 EQMs per flown mile
  • Discounted economy class: 1 EQM per flown mile

That’s good news if you wouldn’t otherwise qualify for status, but barring that it’s bad news, in my opinion.

This will likely increase the number of elite members, which makes domestic upgrades more difficult. That’s not a good thing, because upgrades actually clear on American, for the most part.

American-First-Class
Could domestic upgrades become more difficult?

Two months notice isn’t sufficient

Two months really isn’t enough notice for these changes. View from the Wing seems to acknowledge that in his post, but also suggests that two months is apparently “as good as it was going to get.” 90% of people book travel within 90 days of departure, so at a bare minimum they should give that much notice of major changes, in my opinion.

With many people having already booked 2016 travel, I certainly don’t feel good about the fact that they’re making significant changes to the benefits for status next year, as well as the way miles are earned (towards the end of the year).

Delta gave nearly a year notice of similar changes, and that year also coincided with the program year. Announcing in February that a program will change for the following year is fine, in my opinion. But suggesting it could start mid-program year is disappointing.

Yes, American has been in the process of integrating so this hasn’t been a priority, but if that’s the case they should just wait another year. It’s not like they’re bleeding money, or anything…

Copying the competition isn’t “innovation”

During a recent earnings call, American President Scott Kirby said he was looking for “more innovation within the frequent flyer program.” Now I realize that’s just a marketing buzzword, but it’s still sort of disappointing what that seems to amount to.

American will be following Delta and United late next year in awarding miles based on revenue as opposed to flown miles, as follows:

  • Non-elite: 5 redeemable miles per dollar spent
  • Gold: 7 redeemable miles per dollar spent
  • Platinum: 8 redeemable miles per dollar spent
  • Executive Platinum: 11 redeemable miles per dollar spent

I’m not sure I understand how mindlessly following the competition counts as “innovation.” For years United has been using the “Delta see, Delta do” philosophy, and now American is getting on that bandwagon as well. Oh well.

Delta-SkyMiles-Revenue-Calculator

MileagePlus-Revenue-Based

What about an award chart devaluation?

An award chart devaluation is inevitable. So far we’ve learned about the changes being made to the AAdvantage program in terms of status and mileage earning.

I don’t think the fact that we know the above information means that there won’t be an award chart devaluation. I just think they’re not going to announce it all at once.

So yeah, if the award chart stayed the same for several more years, I probably wouldn’t be too disappointed by all these changes. But we have no reason to believe that’s the case.

These changes are expected… but let’s call them what they are

I’m not surprised by these changes. I sort of expected them, but I’m certainly disappointed by them as well. And I’m a bit surprised View from the Wing thinks these are “probably as good as it was going to get.” To quote Gary, I’d call that the soft bigotry of low expectations. 😉

Let’s be clear about what’s happening here:

  • American is halving the number of systemwide upgrades that Executive Platinum members get, which is arguably the single most valuable top tier elite perk
  • American is following Delta and United almost exactly in terms of awarding miles based on revenue as opposed to miles flown as of late next year; copying them exactly… zero innovation
  • Elite qualification will get easier, which personally I don’t view as a good thing, since it will mean more competition for domestic upgrades
  • Gold and Platinum members will continue to earn 500 mile upgrades, so won’t receive unlimited complimentary upgrades
  • American doesn’t offer complimentary companion elite upgrades for top tier elites, unlike United (where the system actually works) and Delta (where it’s not very useful, since it’s just day of and at the gate)

Again, all of this doesn’t surprise me, but I strongly disagree that this is “as good as it was going to get.” They could have kept eight systemwide upgrades as an Executive Platinum benefits. Or they could have come up with some other innovative system for awarding miles. Or heck, they could have kept mileage earning as it is, because they system isn’t broken, and as they say, “if it ain’t broke, don’t fix it.”

Bottom line

These changes suck, and frankly, are disappointing. There’s very little actual innovation here, and top tier status with American has just gone from the most valuable of any of the “big three” US carriers, to arguably being average at best.

Again, none of which is to say that this is surprising. But secretly I was telling myself “well, maybe American will be different than the competition.” They’re not.

How do you feel about these changes? Am I off base? 

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brian elwell Guest

I've been hitting Twitter as frequently as I can with how bad this is. The new program kicked in this month, and I've taken 3 trips from Dallas (2 to LA and 1 to NY). Last month I would have earned 15,436 miles. This month, I only earned 6,000 miles. They have shorted me 9,436 miles. Let's light up twitter using @AmericanAir to post your complaints.

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Scott Guest

Well, you certainly have hit on a sort spot. I do not agree that it will actually be easier (unless you're flying on company paid J or F class) to make EXP. I am a self-funded small business owner. I expect it will cost me twice as much in revenue to maintain EXP status, and that would have been one thing if the 8 SWU's had remained in place. This could well be my last year as EXP. With 8 SWU's I was able to figure out how to get EXP while doing double continent itineraries starting off in S. America and ending in Europe or Asia going through USA, spending very little time turning right upon boarding the plane (i.e. coach.) This will mean that, as one post put it, along with up to a 66% decrease in the number of miles (given his SFO-JFK ticket price example) alone with what I was actually looking for, a new award chart when I came upon this post it actually opened up recent wounds that had not healed. 6 SWU would be a reasonable number. Their million-mile program is behind even deltas, where you get 75K level for life at 4 MM miles. Until gives Global services for life a 4MM miles (1 notch above 1K) as well as a companion 1K for your spouse, complimentary and irrelevant to any miles flown. Thus, one could conceivably go with a family of 4 in coach and have the good possibility of upgrading two companions (for free, not with paid, soon to be increased in price 500 mile electronic stickers) as well as husband and spouse/significant other. For someone who does not mind searching for mistaken fares in I or A class (discounted business or first) which usually only last a few hours, I see that as they only way to maintain the type of flying that I was enjoying the past several years. Since I am platinum for life as well as Admiral’s Club for life, a deal that no airline would even match (I am not a billionaire who they give Concierge Key to without flying any miles), I am basically screwed, from what I can see. I will seriously think of United for my traveling needs when I move to Los Angeles from Miami, but that is a couple years off, and I will never make it to 3, what les say 4 MM miles. I wish I had given my allegiance to another airline (United) many years ago when I was flying 100,000 miles every year and would have had a chance to make it to 3MM miles and 1K for life. The math works out that I would have to live (with 217,000 lifetime BIS miles and 55 years old now) I would not achieve that until 82 years old (27 more years). I feel really sad that I gave so much loyalty to this airline (American) and now so many benefits are being taken away. It really makes me think that Parker has done the old "bait and switch" on his 30-year loyalty members. I really feel taken for a fool.

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jan Guest

Seems to me it's getting harder to use the system-wides as well. Used to be able to book well in advance on some routes, now it's more a buy and hope for an upgrade ... Been executive platinum for a number of years but these changes have really made me question placing my loyalty with AA again this year. I too have had numerous complaints and no one seems to answer or care. Even the app has gone down hill.. Sad really.

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Jerry Guest

So what effect does their changing the calendar mean? If I am qualified now for elite status (which expires March 1 2017), will they cut me off early (January 31) or will they let it run through the end of their new calendar? Seems like the latter is the only fair thing to do.

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Roni Guest

This is terrible. For someone who is an elite traveller, EP. There is no value or good customer service to the most loyal customers. Where can we write to complain-- been very disappointed with AA lately. customer service reps are not knowledgable anymore and doesn't matter if you're EP or not, everyone boards at the same time! They call all of first class and every group together. What's the point in being loyal then to an airline without the perks!!? Recently I have had numerous incidents where don't log in notes properly or Don't refer to notes from previous calls on issues to solve a problem. Anyone know how we can write to the CEO? Address?

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