That American Airlines Credit Card of Yours has just become pretty much worthless

Discussion in 'American Airlines | AAdvantage' started by ahappyelite, Jan 18, 2016.  |  Print Topic

  1. ahappyelite

    ahappyelite Silver Member

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    http://www.cnbc.com/2016/01/15/airlines-are-changing-their-perks-testing-fliers-loyalties

    For the high spenders who thought you could trust the aircartel, well here they are again screwing you over. Not content to just gut their program for loyal, low spenders, American will go to revenue rewards AND boost redemption levels by 80% (yes that is 80%) in some cases.
    They just cant destroy their product fast enough to satisfy the Hedge Fund/Private Equity pigfest.
    And this, how else can you say it but slap in the face and punch in the gut for even their best customers, will all be done by MID MARCH. Gotta to hustle to keep those quarterly profits in the Billions.
    Once again, the campaign bundlers must be gleeful.
    Won't be hearing much from Mrs. Clinton who got $600,000 to speak to Goldman Sachs and our President who is up to his eyeballs in Wall Street cash-these mergers have really been great, haven't they?
    And the banks no doubt knew about these changes well in advance but continued to sell these cards under false pretenses. Where is the Criminal Division at DOJ? They can start with Citibanks massively promoted, recently ended 50 k bonus (must apply by December 31st.) Which means that for many, by the time their miles post they will be WORTHLESS-as Citibank no doubt knew. Let the subpoenas and search warrants fly.
     
    Last edited: Jan 18, 2016
  2. satman40

    satman40 Gold Member

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    Last year the stock in AA was going for 56.00 a share, today it is 38.00,

    AAL, if anyone is interested in this profitable investment.,


    NBC hired Clintoms daughter and gave her 600,000 to start with no experience...

    We could use less political pay offs in the business world..

    The ones who invest, should be the complainers, but then CDs pay nothing...
     
    Last edited: Jan 19, 2016
  3. ahappyelite

    ahappyelite Silver Member

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    It's truly an incredible thing to behold-and with scary implications for our country-how Wall Street has decided to make a meal out of the airline passenger, hoping for a big score in the wake of what is surely a corrupt decision to allow these mergers (which would be so beneficial, the US government told us) We are now seeing asset stripping, the cannibalization of years of relationships built with customers who spent a great deal or a steady amount. The customer s now an enemy combatant. The airlines don't even pretend to care at all about customer service-recent ceo comments are that from now on its churn baby churn. The business press is pathetic, allowing airline officials to come out of hiding on the off shore island they must work from, to declare as United did, how much they care about the customer in winter. Tell that to the customers stranded @ord to a degree by mother nature but a much larger degree by airline greed and corruption (since they collude on scheduling, your cancelled flight might mean a cancelled trip since seas will only be available 2 days later-with a loss of your deposit $.. Air travel got worse every day for the past five years, and the business press always does these, on the brighter side stories. The press also should have been telling customers for 4 or 5 years about the decimation of frequent flyer programs now upon us, the current and soon worthlessness of credit card points, and the billons? the airlines have added to their bottom line by denying Pa and Ma Kettle from cashing in for a Detroit to Orlando reward after two or three years flying. The hedge fund/private equity people are the greatest threat to the middle and working class and what they have done to the airlines is Exhibit A.The airlines may still crash, but maybe they'll will cash in on 12 quarters of profits that come by destroying the air experience for everyone. Then, these greedsters will move on: what is next for them selling tainted SPAM for school lunches, putting four oldsters in one nursing home room, a new funeral enterprise to defraud the grieving?
     
    Last edited: Jan 20, 2016
  4. Counsellor
    Original Member

    Counsellor Gold Member

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    The link in the original post doesn't work.
    Could someone repair it please, or provide good link?
     
  5. Gargoyle
    Original Member

    Gargoyle Milepoint Guide

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    Per ad p. 34 of the January American Airlines magazine, the 50k miles offer expires February 29, 2016, not Dec. 31 as the OP stated.

    One the rest, it just sounds like they are matching the other legacies. They managed to hold off doing that for a year or so.

    Sent from my SM-G800F using Tapatalk
     
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  6. ahappyelite

    ahappyelite Silver Member

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    So people should apply for 50k worthless miles?
     
  7. satman40

    satman40 Gold Member

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    I will be happy for 50,000 more in my account,mand also in my wife's.

    Thank you, for 100k more.

    It took me 10 years for the first million, today we do it in less than a year..
     
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  8. ahappyelite

    ahappyelite Silver Member

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    so people should apply for 50K miles that American is currently making pretty much totally USELESS?
    So we are clear: American is not matching anyone-this is a new frontier in decimating frequent flyer programs-awards will be based on $$$$ and the redemption levels, what is required for a flight is being raised by an incredible 80% in some cases. So even those who spend shovelfuls of money at American just got hammered. Which makes this one useless credit card.
     
    Last edited: Jan 21, 2016
  9. Counsellor
    Original Member

    Counsellor Gold Member

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    You haven't looked at Delta's Skymiles program recently, have you?
     
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  10. ahappyelite

    ahappyelite Silver Member

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    I think this is worse, still, does anyone know for sure? And it's a further step on the devaluation expressway. Did Delta also raise redemptions by as much as 80%? And of course, it signals and underlines the complete and utter untrustworthiness of the aircartel. Since they are asset stripping their passengers looking for a quarterly boost, why would anyone apply for a new card, buy miles, or accumulate a lot of miles unless they are willing to see those miles wiped out. They are working feverishly every day to provide a worse experience for even their highest spenders-so today's degradations are just a snapshot. Also is staggering proof for Anti Trust people (if they still exist) of the anti-competitive and collusive nature of the cartel which has once again been quite public in calling for price fixing (Seat discipline) especially United which is actually shrinking and wants others to shrink with it so they can collaboratively strand another 100,000 seat jamees during bad weather
     
    Last edited: Jan 22, 2016
  11. satman40

    satman40 Gold Member

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    Delta miles last me a long time, and they never expire, most of them never gets used either,,

    Mine has set there for over 10 years now..
     
    Last edited: Jan 23, 2016
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  12. Counsellor
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    Counsellor Gold Member

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    There might be a reason they never get used . . . .
     
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  13. satman40

    satman40 Gold Member

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    Delta does have one way awards now...

    I remember Delta was the only IND , ATL, flight @ $500.00 before competiton,

    today a decent fair price is no problem.
     
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  14. newbluesea
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    newbluesea Gold Member

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    I take it among the (many) things you seem unhappy about are paragraphs ... I don't think they were invented by the airlines.:rolleyes:
     
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  15. Counsellor
    Original Member

    Counsellor Gold Member

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    OP says:
    The "revenue rewards" issue doesn't really have anything to do with credit card miles that I can see. Credit card users will still get the same number of miles and the same bonuses, and the award miles they earn will count the same as the "revenue" reward miles earned by flyers, so I don't see the connection. Oh, the flyers may well be upset if they wind up earning fewer miles when revenue rather than distance is the metric, but again I don't see how that affects the credit card users or the miles they earn from credit card use. Could you clarify your point in this respect, please?

    I've tracked down the award redemption charts, and at least as to redemption on American flights, I don't see a huge devaluation. Oh, there are some increases, but most awards seem to require the same or even fewer miles than before. Charts are here:

    Current (pre-March 22nd) redemptions: http://www.aa.com/i18n/AAdvantage/redeemMiles/american-airlines-award-chart.jsp

    Redemptions 22 March and later: http://www.aa.com/i18n/AAdvantage/redeemMiles/american-airlines-award-chart2016.jsp

    There are some big jumps for MilesAAver awards in First Class, but the largest I saw was to Asia Region 2, where the miles needed jumped from 67,500 to 110,000, but even that is not 80%, more like 63% (high yes, but the only one I found in my quick search that was so high).

    So, most redemptions for AA flights will either be unchanged or actually lower in cost, and I suspect that most redemptions are indeed for AA flights.

    Now, if you redeem for non-AA flights, you're going to see more increases, The charts can be found here: http://www.aa.com/i18n/AAdvantage/redeemMiles/all-partner-chart2016.jsp. The "popular with flyers on this board and on FlyerTalk" CX First Suite to and from HKG: jumps from 67,500 to 110,000, and I'm certainly going to miss getting that for only 67,500 miles; however, I still didn't see an 80% increase. Am I missing something?

    I just don't think the sky is truly falling.
     
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  16. ahappyelite

    ahappyelite Silver Member

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    Up to 80% redemption increases is what that link at CNBC is reporting.....
    Let us do the math for United NYC LAX Gold elite, pre superdevaluation:
    Miles earned
    originally, pre cartel: 10,000 miles
    Then: 7,500 miles
    NOW: perhaps as low as 800 to 900 miles, not even worth entering your ff number (better seat, perhaps?)
    And way higher levels of redemptions on their own metal, and super higher redemption on their partners (where they have not ended their relationships) Which is why they are so quick to erase your history....they don't want you to see how screwed you have become
    90% reduction there? More in some cases...
    So yes, the sky did fall
    and they are still whacking away
    so you can see the rise of Spirit and the collapse of the travel impulse a lot of ff's once had (even discounting the packed, airless, Gitmo seating and other hassilistic factors.)
    Pre cartel: 13 round trip transcons would have earned you a first class round trip to Africa
    NOW: You would need to do 200 (United Mileage Minus) Aren't mergers great?
     
    Last edited: Jan 23, 2016
  17. Counsellor
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    Counsellor Gold Member

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    As I said above, flyers may earn less due to the change from distance-based to revenue-based, but I don't see how that relates to the title about AA credit cards becoming worthless.

    Indeed, if earning miles by flying will be harder, it would seem the credit card is becoming even more valuable.

    And I don't see any 80% increases in miles needed for awards, let alone the 90% or more you now posit.

    The only really great increase seems to be the First Suite to Hong Kong (or somewhere in Asia 2). That flight in CX First Suite from JFK prices out at $18,000 to $29,000 for a round trip, so getting it for 2x67,500 miles means a redemption value of 13 to 21 cents for each mile! That is an extremely rare bargain, and personally I'm surprised (but delighted) that it remained available for so long! Even at the new rate of 220,000 miles for the round trip, it's still a great bargain at 8 to 13 cents per mile. Hardly worthless.

    That's not to say I'd shell out $18K to $29K for the ticket, but I was overjoyed to get the flight -- four separate times -- for 135K miles and will even be happy to get it for 220K miles.
     
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  18. ahappyelite

    ahappyelite Silver Member

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    ;"The biggest changes that will affect the most members will probably be award chart changes in March, and changing to a revenue-based program by the end of the year," American Airlines spokeswoman Laura Nedbal told CNBC.

    That means that anyone with banked miles in American's AAdvantage program should look to spend them by March 21, said Brian Kelly, a travel expert with The PointsGuy.com.

    "That's when they're changing the rates and, after that, in most markets you'll end up needing more miles for an award ticket," Kelly said. "In some cases the hike is 80 percent."

    http://www.cnbc.com/2016/01/15/airlines-are-changing-their-perks-testing-fliers-loyalties.html

    And this was one very quick and brutal devaluation. You would trust these people enough to accumulate their miles? You're aware the Fortune Magazine is reporting this issue that Wall Street is demanding that the airlines make air travel even worse so they can cash in.
     
  19. brodyf

    brodyf Gold Member

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    Are you intentionally using the "a" prefix to mean "anti" or "not"? Like in atypical or apolitical.


    Sent from my iPhone using Tapatalk
     
  20. KenInEscazu

    KenInEscazu Gold Member

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    As a FF who now flies most frequently in paid-for premium cabins, I see very few cases where I'll lose miles earned under the revenue based system. Sometimes I'll earn even more. The one I'll miss is the LAX-JFK 12,000 miles bonus, as I always fly that route on a discounted business fare.

    As for credit card earning, I agree with Counsellor. If miles become harder to earn and/or less valuable, then having the card as a boost is more important now than ever before. True that it isn't as rewarding in some cases, but not having the miles earned on the cards won't change that.

    Additionally, the cards still make it easier to achieve status. The 10,000 EQMs can make the difference between whether or not one achieves their desired status. For me, the minute I hit EXP is the minute I'll start cashing in miles for the remainder of the year. That keeps me flying with my all-important 4 checked bags for less money than it would have cost me otherwise.

    This has been a game played in our favor for many years now, and I would certainly like to earn more miles, redeem them at lower levels and pay the cheapest fare available. The pendulum has now swung to the airlines' favor, however, and I choose acceptance over the fruitless exercise of whining about it. Hopefully, it will swing back before I'm too old to take advantage of it. In the meantime, I'll simply enjoy what's left, and that's almost certainly more than I'll use. My burn rate has not exceeded my earn rate for many years now.
     
  21. ahappyelite

    ahappyelite Silver Member

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    That was Doug Parker on the conference call confirming that American is in the process of gutting their ff program, wasn't it? The PointsGuy says you should use your AA miles before the middle of March or see them greatly diminished, with 80% redemption increases. Hmm, would I trust him or the aerogangsteros? While still pimping their miles, American, as usual, has a secret plan to further degrade their incredibly degraded everything, so bad is the plan they won't disclose it. This is why they think that AA stock is undervalued, there are still a bunch of things you can still steal from the passengers, even your most serious loyalists (And I understand their are investors on this board, just a suggestion that you could disclose that before issuing apologias for this disgusting greedfest that is the US airline industry.) It is ironic that Wall Street is demanding the airlines make travel EVEN WORSE, even though the same Wall Street, people who know that air travel is already a suckfest are worried....You are on a real knife edge when your business philosophy is the aircartels, "You have no choice, you can take it or leave it."
     
    Last edited: Jan 30, 2016
  22. satman40

    satman40 Gold Member

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    AA seems to be opening lower point runs to ASIA this summer, they must have been listening.

    I put much of my spend on SPG, transferring at 1.25, to AA.

    Citi is much easier to churn than Chase, so the miles are not that hard to get..

    This report is from the real world, not a blogger, selling a credit card.
     
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  23. ahappyelite

    ahappyelite Silver Member

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    That was Doug Parker (1) on the conference call referencing the secret plan to destroy billions of miles.....and there are people here still encouraging people to sign up for miles that AA are making WORTHLESS....they probably are WORTHLESS already if the TRUTH was told...the TRUTH is not something the aircartel traffics in.....
    (1) I am a consumer and do NOT own any airline stock
     
  24. satman40

    satman40 Gold Member

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    My time with AA dates back to the early 60s, today I am Life Time Platimun,

    I am what one would call a consumer,

    I have speculated in the stock, never a long term investor in any airline stock, they are not profitable, being controlled by Unions, Governments, and burdened by media.

    I was glad to see Asian routes open with discount awards, in the last few weeks.

    First Class at 50,000 miles is pretty cheap, last time it cost me 67,500 each way.

    Fact is first time I personally flew a plane, bought a share of stock, most posters were not even born, which allowed me to look back at how far we have all traveled.

    It have been unreal, looking down from up high and realizing how small we really are .
     

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