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As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

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Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
American Airlines Group

More Bad News for American Airlines Frequent Flyers

By
Chauncey L. Alcorn
Chauncey L. Alcorn
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By
Chauncey L. Alcorn
Chauncey L. Alcorn
Down Arrow Button Icon
July 18, 2016, 3:52 PM ET
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American Airlines AAdvantage customers won’t be happy this week now that the airline company has slashed its benefits mileage rewards once again.

The slight reduction in mileage accruement for AAdvantage customers using the airline’s partner carriers was highlighted over the weekend, less than a month after a previous American Airlines travel benefits reduction, one the company claims brings it more in line with its peers in the industry.

AAdvantage Executive Platinum members now will receive 11 miles for every dollar spent. Platinum members will earn eight miles per dollar and gold members will earn seven miles.

“The AAdvantage program hasn’t changed in a while,” says American Airline Spokesperson Sunny Rodriguez. “By switching to a revenue based program, it ensures we’re staying competitive within the market… It’s something we’ll definitely review as time goes on.”

The new rewards rate goes into effect on Aug. 1.

American is part of the Oneworld alliance which includes more than a dozen carriers like British Airways and Air Berlin. Its partner benefits members received 100% of American’s AAdvantage award miles before this most recent change, which cut the earning rates for most service classes excluding business and first class airfare.

 

Travel reporter Grant Martin of Skift.com says these frequent flyer mile reductions could damage the airline’s reputation with customers.

“How the ranks of AAdvantage members expand or contract after these changes will now largely depend on whether American can compete on product instead of loyalty,” he writes.

Skift.com reports that Delta and United Airlines have similarly reduced their travel benefits programs in recent years, but that fact does little to quell the frustration of AAdvantage customers.

FlyerTalk.com commenter jigri2003 writes that AAdvantage is now “the worst of the 3 major US programs.”

Deborah Sullivan tweets “@AmericanAirlines your customer service could use some work. Especially to #AAdvantage customers.”

@AmericanAirlines your customer service could use some work. Especially to #AAdvantage customers

— Deborah Sullivan (@deborahsulli) July 17, 2016

 

Mike Zolna also says on Twitter “@AmericanAir you guys need to learn about customer loyalty #AAdvantage”

Common @AmericanAir you guys need to learn about customer loyalty #AAdvantage https://t.co/YAfJE6lCPM

— Mike Zolna (@mzolna) July 16, 2016

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