Here’s a Golden Parachute Out of Often 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 elite upgrades, the primary membership perk, is depressing. The best way out for American Airlines and One world members is clear: Join the loyalty program of the right international partner.

In my case that meant saying bye-bye to American AAdvantage and hello to British Airway’s Executive Club or Cathay Pacific’s Asia Miles. Membership in either program allows me to confirm First Class on American for domestic travel, but enjoy a much better Business Class cabin when I fly internationally. It’s worth a few dollars more to just buy premium tickets.

Here’s how and why it works…

Let’s say you live in New York and take four American Airlines domestic transcontinental flights each year (5,000 miles round-trip) and one trip to Europe (7,000 miles round trip). Further, let’s assume you pay an average of $400 per round-trip on the transcon for an economy class seat. We’ll suppose you’re very lucky and your AAdvantage elite upgrade gets confirmed every time, which means you shell out another $300 for elite upgrades on each round-trip. That brings the four domestic tickets upgraded to First Class to $2,800 and you earn about 20,000 frequent flyer miles.

As for your fare to Europe, let’s assume it costs $500, and you spend 50,000 miles and$500 on the round-trip upgrade surcharge. You’ll have earned 20,000 miles by flying the four transcons, leaving you out of pocket by 30,000 miles or about $750 — at least that’s what they would cost at AA.com (https://buyaamiles.points.com/BM_Account.jsp). That brings the total to $4,550 for the five round-trips — again, assuming elite upgrades get confirmed EVERY time (and they won’t) — just to get a mediocre international Business Class seat on American. (Yeah, they have new seats on the way but the roll out is going to take awhile, and even so they will still lag behind BA’s seats by much.)

The Executive Club Alternative

I say just forget American’s elite upgrade scheme altogether and become a member of British Airways Executive Club. Buy four American Airlines discounted First Class tickets outright, which should run about $998 each or $3,992 (NYC/Newark-LAX non-stop). When you make your booking, give the AA reservationist your British Airways Executive Club number.

You’ll earn bonus British Airways miles with a 50% class of service bonus for paid First Class. Traveling on these tickets will earn about 30,000 miles and you only need 25,000 miles to upgrade a $600 Premium Economy round-trip fare to London. So, for about $4,592 or $8.40 more per trip, you end up with a confirmed First Class seat domestically, and a much better, lie-flat Business Class seat internationally. (American’s seat only reclines to 160° vs. BA’s 180°). An added benefit of switching your loyalty is earning sufficient elite tier points for BA Executive Club’s top-level Gold elite status compared to only earning low-level AAdvantage elite for these same five tickets.

Another Alternative: Cathay Pacific

The primary advantage (and it’s huge) of the carrier’s Asia Miles frequent flyer program is that these miles can be used for upgrades on both American and British Airways flights. The second thing that makes this program interesting is the upgrade discrepancies.

From some destinations, the Asia Miles program requires fewer miles to upgrade on American and British Airways than these 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 members50,000 miles. Moreover, American imposes a$500 upgrade surcharge per round-trip, whereas Cathay Pacific doesn’t. From the west coast, Asia Miles charges 60,000 miles for an upgrade to Europe.

Here’s My Best Plan

I’m going with Cathay Pacific. Why? For those times when I can book a heavily discounted economy class domestic fare and confirm an elite upgrade at ticketing with my American status. With Cathay, I’ll still earn full mileage credit, whereas with BA the discount flights only receive 25% credit. (I’m keeping more domestic options open by joining Asia Miles.) But I wouldn’t argue if you decide to go the other way, especially since BA offers free upgrades for two at the 2,500-tier point level and again at the 3,500 level — which is a good route to take for high-flying international travelers.Either way, you’re miles ahead. As for American, we can still be friends.

Hesitant to take the leap and try my unusual ticketing system?

No need to be. The fact that many carriers offer an elite“buy-back” option at the end of the calendar year allows you to take a chance on experimenting with this system.In other words, during the year that you’re going to bail on the program, you won’t earn enough credit for elite status the next year. For example, 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 $299 to $599 (depending on elite level) to buy back the status for the following year.

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).
 
• More extensive Asian route network. (American flies only to Japan, China and India.)
 
• Many Asia Miles partners have sleeper seats and good fares. For instance, BA and Iberia to Europe, and Japan Air Lines to Asia.
 
• Earn miles with both American and Alaska Airlines on US flights.
 
• Economy class travel gets 50% mileage credit from Asia Miles on deeply discounted fares, versus BA’s 25%.
 
• 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 as AAdvantage does to its members.

Asia Miles caveats

• Some discount, upgradeable Cathay economy fares earn only 50% of miles flown.
 
• If you change 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.

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 fare program.)
 
• 600 points in the Executive Club program earns access to American’s Admirals clubs (a $400 value). Sample earning: SFO-JFK round-trip First Class, American Airlines = 360 tier points.
 
• 19 US gateways to London and more non-stops to Europe than AA.
 
• With 10 flights daily from New York, upgrade availability is often a snap.
 
• Household Accounts allow you to “pool” miles among family/household members.
 
• Allows purchase of 20,000 miles annually.
 
• Extensive route network to Europe and beyond, including the Middle East, India, Africa, and many places that are hard to get to.
 
• Earn 2,500 ‘Tier Points’ and get a companion upgrade; 3,500 nets another.

Caveats

• Mileage upgrades from the west coast can be more difficult to confirm because there are fewer flights than from the east coast.
 
• Mileage purchase limit of 20,000 miles annually versus American’s 40,000 miles.
 
• European itineraries require a connection in London.
 
• Upgrade tickets can’t be booked through most corporate travel agents; but through BA directly.
 
• Many heavily discounted economy fares only earn 25% of miles flown. More on