Here’s a Golden Parachute Out of Dismal Domestic Elite Status

Let’s be frank: The idea of switching frequent flyer programs is daunting, to say the least. But let’s be realistic: The increasing scarcity of actual elite upgrades, (the primary perk of membership) available with most programs is depressing. So why not change strategies? Who wants to be daunted and depressed?

That’s how I looked at the situation — until I discovered a way out. The solution: Join the loyalty program of my domestic carrier’s international partner. In this case that meant saying bye-bye to American AAdvantage and hello to British Airway’s Executive Club or Cathay Pacific’s Asia Miles.

With the new strategy (and for only about 20% more money) I can confirm domestic First on American and fly much better internationally. Here’s how it works.

The New Strategy

Let’s say you live in New York, take four domestic transcontinental flights each year and one trip to Europe. Further, let’s assume you pay an average of $400 per roundtrip on the transcon for an economy class seat. We’ll suppose you’re very lucky and your elite upgrade gets confirmed every time, which means you shell out another $250 each round-trip for elite upgrades. So, the four domestic tickets cost about $2,600.

Now, let’s say your fare to Europe costs $500, plus the round-trip upgrade surcharge of $500, and the 50,000 miles to upgrade. You’ll have earned about half of the 50,000 miles needed to upgrade by flying the four trancons, leaving another 25,000 miles needed. A good estimate is that the miles have a replacement value of about $700 — at least that’s what they would cost at points.com (or about the value they would hold elsewhere).

The total is about $4,300 for the five round-trips — again, assuming elite upgrades get confirmed EVERY time — and for an international Business Class seat with American, which is mediocre at best.

The Executive Club Alternative

I say just forget American’s elite upgrade scheme altogether (if you’re not getting upgrades confirmed, why not?) and instead purchase the four discounted First Class tickets outright. That’s about $1,100 each or $4,400. But when you make your booking on American, give the reservationist your British Airways Executive Club number.

The approximately 25,000 British Airways miles you'll earn traveling on these tickets is the amount needed to upgrade a $700 Premium Economy round-trip fare to London. So, for a total of about $5,100, only $900 (20%) more than the American scenario, you get confirmed First Class domestically and a lie-flat Business Class seat to London. (American’s only recline to about 160°.)

Note that this strategy requires booking an economy fare B Class or higher, as they earn full mileage credit with BA. Heavily discounted economy fares only earn 25% credit, making it impossible to earn upgrades on an ongoing basis.

Another Alternative: Cathay Pacific

The primary advantage (and it’s huge) of the carrier’s Asia Miles frequent flyer program is that the miles can be used for upgrades on three other airlines: American, British Airways, and Dragon Air.

The second thing that makes this program interesting is the upgrade discrepancies. From some destinations, the Asia Miles program requires fewer miles to upgrade with American and British Airways than the two airlines charge their own members. One Example: New York-London requires 45,000 Asia Miles for a round-trip upgrade on American, whereas American charges its own members 50,000 miles. Moreover, American imposes a $500 upgrade surcharge per round-trip, whereas Cathay Pacific only requires booking an H fare, usually about $150 more than the lowest fare. From the West Coast, Asia Miles charges 60,000 miles for an upgrade to Europe.

What Makes Switching Loyalty Program Even Easier?

If you’ve never taken advantage of American’s elite “buy-back” option, experimenting with a new program is even less daunting. During the year that you’re going to bail on the program, you won’t earn enough credit for elite status the next year. But if you decide to go back to American — no problem. For the last several years the airline has offered those who’ve fallen short the option to pay about $600 to “buyback” the status for the following year.

Here’s My Plan

I’m going with Cathay Pacific. Why? For those specific instances in which I can book a heavily discounted economy class domestic fare and confirm an elite upgrade at ticketing. With Cathay I’ll still earn full mileage credit, whereas with BA I would only receive 25% credit. (I’m keeping more domestic options open.) But I wouldn’t argue if you decide to go the other way, especially when BA offers free upgrades for two at the 1,500 tier point level and again at the 2,500 level — which is a good route to take for high-flying international travelers.

[aside headline="How are you going to fly this year?" alignment="alignright" width="half" headline_size="default"]I want to know. Write me today while you’re thinking about it: mr.upgrade@firstclassflyer.com[/aside]

Either way, you’re miles ahead. As for American, we can still be friends.

A Closer Look at British Airways Executive Club Benefits

• Offers a 2-for-1 program with BA Signature Visa. (AA doesn’t have a companion program.)
 
• 600 points in the Executive Club program earns access to American’s Admirals clubs (a $300 value).
 
• 18 US gateways to London and more non-stops to Europe than AA.
 
• With 10 flights daily from New York, upgrade availability is usually a snap. West Coast gateways aren’t as good though.
 
• Household Accounts allow you to “pool” miles among family/household members.
 
• Allows purchase of 15,000 miles annually.
 
• Extensive route network to Europe and beyond, including Middle East, India, and Africa, and often to places that are hard to get to.
 
• Earn 1,500 “Tier Points” and get a companion upgrade; 2,500 nets another.

Caveats

• Mileage upgrades from the West Coast can be more difficult to confirm. However, AA has few West Coast gateways anyway, so you have to make a connection from a Mid-West or Eastern gateway already.
 
• Mileage purchase limit of 15,000 miles annually versus Asia Miles 165,000.
 
• European itineraries require a connection in London.
 
• Upgrade tickets can’t be booked through a corporate travel agent; they must be booked through BA directly.
 
• Many heavily discounted economy fares only earn 25% of actual miles flown.

More on BA’s Executive Club: www.britishairways.com

Cathay Pacific Asia Miles Benefits

• Offers a 2-for-1 program with Amex Platinum/ Centurion card.
 
• No loss of “upgrade availability” when booking flights on BA, since the carriers use the same inventory for Business Class upgrades (U class).
 
• Extensive Asian route network. (American flies only to Japan.)
 
• Many Asia Miles partners have sleeper seats and good fares. For instance, BA and SWISS to Europe, and Japan Air Lines and South African Airways (using Amex 2-for-1).
 
• Earn points with both American and Alaska Airlines on US flights.
 
• Mileage purchase limit is a whopping 165,000 annually, at $.0325/each (for lots of options).
 
• BA economy travelers get 50% mileage credit from Asia Miles on deeply discounted fares, versus BA’s 25% though its Executive Club (better than BA, but not as good as AA).
 
• Asia Miles are valid for upgrading on AA domestic flights. (Short-haul domestic upgrades can even be less (25K) than AA’s 30K r/t upgrade.)
 
• For those hung up on flying American: The carrier allocates the same number of upgrade seats to Asia Miles members for upgrades that AAdvantage members have access to.

Asia Miles caveats

• Some discount Cathay economy fares earn only 50% of miles flown.
 
• If you make a change to a mileage upgrade ticket, you lose the miles redeemed. (Savings are so great that you can afford this now and again.)

More on Asia Miles: www.asiamiles.com.