The Smoke and Mirrors of Airline Partnership ‘Elite Qualifying Dollars’ (EQDs)
July 1, 2017 High & Inside
The disappointing truth about alliance-partner flights when it comes to earning EQDs.
I’m talking about the way the three major U.S. carriers use their alliance partnerships to reduce your reward for loyalty.
I’m not angry. I’m disappointed because they keep getting their way, and many of you haven’t caught on to the game, as far as I can tell. I sometimes reproach myself: FCF has written about this topic many times before, but it seems that we haven’t gotten through.
So, now I’m getting this off my chest and telling you why you should cast a very skeptical eye on partnership flights if you’re going for elite status, which means earning Elite Qualifying Dollars, not just flying a certain number of miles.
The Heart of the Matter
In the old days, miles flown usually equaled miles earned on partner flights. The idea was that for an elite every airline in an alliance—Star, oneworld, and SkyTeam—offered the same benefits when it came to accruing elite status.
Then in 2015, Delta concocted Elite Qualifying Dollars. Now, it wasn’t only the miles (or segments) you flew—Elite Qualifying Miles (EQMs) or Elite Segments (EQSs)—but on top of that you had to spend a certain amount of money each year with the airline to reach elite status. That set up a whole new caste system, even among elites.
The key point: Earning elite status on American, Delta, and United is intended to make sure you pay enough, as well as fly enough.
EQDs are now the big hurdle to earning elite status. The three major U.S. airlines now require $3,000 worth of EQDs for entry level status and up to $15,000 worth (varies by airline) for top elite status.
In short, the miles you fly no longer get you elite status unless you pay the right amount for the flight. Money talks, loyalty walks.
The Illusion
The three major U.S. airlines are pretty good about giving you EQMs—as much as 300% when flying on partner airlines. This fosters the illusion of great value in partnerships, but when it comes to earning elite dollars on partner tickets, the story is completely different. Because that ticket might earn you zero EQDs.
Here are a few examples about the true costs you incur through elite partnerships.
American Airlines (oneworld)
I must admit that American is the least misleading of the trio, so let’s start with it.
Major Partners: British Airways and Cathay Pacific: The loyal, unassuming AA traveler thinks that buying a British Airways ticket nets “elite earning credit” on American, right? Not really: It only yields 25% of the EQDs the AA loyalist would normally earn on an American flight. A 75% haircut. (This leads me to think that AA is actually trying to deter you from buying this partner ticket.) Once you realize this—you’re still with me, right?—you’re forced into paying whatever AA charges, accept whatever schedule it offers (including connections), and deal with the fact that AA no longer offers a First Class cabin on many routes (London still has one, it should be noted).
FCF’s Workaround
Here’s the Trojan Horse in the AA-BA and AA-Cathay Pacific partnership. Simple. Going to London? Buy a ticket on a BA-operated flight, but only if it’s an AA marketed flight and has an AA flight number. Do this and you earn full EQDs. This workaround isn’t perfect, however, as not all flights on AA have the same number of seats at fares as low BA offers.
Same solution if you’re going to Hong Kong on Cathay Pacific. If you don’t book an AA marketed flight, you only earn 25% EQDs in Business Class and 30% in First.
Delta (SkyTeam)
Per its website: “When you are a SkyMiles Member, your loyalty is rewarded when you fly with our airline partners too.”
Sounds good, right? Here’s the real deal on two major partners, Air France and Korean.
Air France: A discounted Business Class ticket only earns 25% EQDs. You get 35% for a full-fare ticket and 60% for a First Class ticket.
Workaround: Same story as American: you must buy a Delta code-share flight to earn full Delta EQDs.
Korean Air: Listen closely: Book Korean in Business or First Class and you get ZERO EQDs toward Delta Elite Medallion status, even if you book a Korean Delta code-share flight on Delta.com! A hard landing.
United (Star Alliance)
Here it’s simple: Remember this number: 016. In order to earn any EQDs, or as United calls them “Premier Qualifying Dollars” (PQDs), on a partner flight, you have to buy a United ticket. The ticket number must always begin with 016. A good example of how this detail can cost you if you overlook it is in a recent FCF fare alert on Air Canada to Asia.
Air Canada had fares as low as $2,417 round-trip in Business Class from San Francisco to Asia, but it’s not a United code-share flight. So, you get no United EQDs. The lowest fare that qualifies for United EQDs costs $4,220.
There’s a whiff of “Come Fly With Me” about this, a seductive fare with small print that ends up being a slap in the face.
These inner alliance cogwheels are fascinating to me, so just stay with me for a minute. In effect, United is allowing Air Canada to undercut its Business Class fares, but also keeping Air Canada from poaching its elites, as most of them won’t go for the low fare because it doesn’t earn EQDs.
The two carriers are really just swapping non-elites, but of course those passengers are taking seats that were once the province of elites (your province), while protecting their own markets. I don’t want to say its collusion, but boy, it sure feels like a backroom arrangement!
I’ll get off the soapbox now, after three last words: Don’t be conned. Scrutinize that partner fare for EQD earning, not just miles accrued. The airlines have changed currency on you.