American Airlines Releases New Award Chart

Seth has details of the changes. The big changes are in the AAnytime Awards, or awards that have more availability across dates. There are now three tiers of AAnytime Awards with the highest tier being exponentially more expensive than the lower tier. US Airways also upped the price of the sweet spot on their reward chart, US-North Asia rewards go from 90,000 miles to 110,000 miles.

The biggest news out of this seems to be American releasing the chart with no announcement and making the changes effective immediately. That is definitely not the most customer friendly way to do business and is different than the announcement from other airlines regarding similar types of changes.

I think this is the beginning of the end of the American Airlines love affair that a lot of travel/airline bloggers seem to have. American is going to start to fall in line with what the other carriers have in place for elite programs and reward bookings and people need to prepare themselves for that.

When “Unlimited” Does Not Mean “Unlimited”

The Frequent Fliers Who Flew Too Much – A look at American Airlines’ AAirpass and the negative consequences (Los Angeles Times) →

American Airlines offers different forms of an unlimited first class flying pass. When originally conceived its usage potential was not completely understood by American and it came back to get them.

Mike Joyce of Chicago bought his in 1994 after winning a $4.25-million settlement after a car accident.

In one 25-day span this year, Joyce flew round trip to London 16 times, flights that would retail for more than $125,000. He didn’t pay a dime.

There are people always willing to find the different ways of making programs, deals, etc. work for them. The users of the AAirpass were no exception:

Creative uses seemed limitless. When bond broker Willard May of Round Rock, Texas, was forced into retirement after a run-in with federal securities regulators in the early 1990s, he turned to his trusty AAirpass to generate income. Using his companion ticket, he began shuttling a Dallas couple back and forth to Europe for $2,000 a month.

“For years, that was all the flying I did,” said May, 81. “It’s how I got the bills paid.”

The problem is, some of these uses were against the terms of the passes. American had let their enforcement of such terms and conditions slip and now had to react swiftly to stop any further loss.

Cade was assigned to find out whether any AAirpass holders were violating the rules, starting with those who flew the most.

She pulled years of flight records for Rothstein and Vroom and calculated that each was costing American more than $1 million a year.

[…]

On Dec. 13, 2008, Rothstein and a companion checked in at Chicago O’Hare International Airport for a transatlantic flight. An American employee handed him a letter, which said his AAirpass had been terminated for “fraudulent behavior.”

The whole story is a fascinating read and I highly recommend reading it. It is further proof that travel is a bit addictive and being able to pack up and go somewhere exotic is very alluring. And such an attractive hobby means that there always people looking for ways to maximize their value, bend the rules, and skirt attention.