British Airways Devaluation Update and Campaign to Keep the Single Oneworld Partner Award Chart

by The Points Guy on September 2, 2011 · 130 comments

in American Express,British Airways,Chase

Yesterday I wrote about some upcoming changes to the British Airways program and they seemed okay for their European members, though I had some major questions about their partner airline award chart. Right now, the biggest value of British Airways miles for most North Americans is the ability to use miles on Oneworld partners (like American Airlines, Cathay Pacific and Lan) for travel from the US to South America for 40,000/80,000/120,000 (coach/business/first) roundtrip and Asia for 50,000/100,000/150,000 miles roundtrip. Not only are these good deals in terms of mileage, but the steep fuel surcharges BA adds on to flights to Europe do not apply to these awards. This is the reason why I got the 100,000 mile Chase British Airways Visa back in April and why I transferred a bunch of Amex points to British Airways in July at the 50% bonus.

However, now the British Airways rep on Flyertalk confirmed that partner award chart is drastically changing:

“Sorry if it wasn’t clear in my earlier post, partner rewards will be priced the same as BA. So – a single pricing table for itineraries which are: BA only, BA +1 partner or partner only

For multi-partner itineraries these will be priced using the current oneworld multi carrier redemption. The pricing will be based largely on a distance banded model for all reward sectors. We are not purposefully withholding anything or trying to hide anything – I will be as informative as I can and try to keep up with your questions. Please do feel free to prompt me if you feel I am missing something important that needs a detailed or urgent answer.”

Excuse the crude reference, but in my opinion this is a perfect example of a sh*t sandwich: you deliver seemingly good news (20% decrease in some awards), followed by terrible news (huge increases in partner awards), then follow it up with some good news to hope that people forget about the bad news (TBD)

Update from BA Rep on Flyertalk:
With regards to the pricing queries you have, we are working towards sharing the detail with you in a more structured manner as soon as possible. I’m sorry that we cannot publish the full details at the moment. We will be communicating more detail in the lead up to the changes actually happening. Can I please ask that you do not send me individual pricing queries by route via PM as I cannot answer these due to a rapid increase in queries and while I appreciate everyone has personal concerns, the wider community share some of these too as well as the general day to day account concerns. What I will say is that the general consensus concerns have been noted.”

I then Tweeted BA asking for more clarification on the award chart and the response was:

BritishAirwaysBritish Airways N.A.

@thepointsguy Hi. We will be issuing further details on Partner reward pricing in the coming months. Thanks for tweeting.

Coming MONTHS? They can’t be serious.

Until a BA rep can prove otherwise, I think we were all served a hearty portion of said sandwich. While routes like JFK-London  come down in miles by 20%, their fees and surcharges are over three times more than their US counterparts.

American, Delta and Continental all priced at 40,000 (AA off-peak) – 60,000 miles roundtrip for a coach New York (JFK or Newark) to London, whereas a British Airways award will cost a whopping $563.29.

Newark-London for 60,000 miles and $168

JFK-LHR on Delta for $168 and 60,000 miles

JFK-LHR on American for 40,000 miles and $168

JFK-LHR on British Airways for 50,000 miles (40,000 in the new program) and a whopping $563

I’ve always dismissed these insane fuel surcharges and instead recommended that you redeem your miles on partner awards to/from anywhere but Europe. With that option becomes much less lucrative come November 16, 2011 – I would encourage everyone to redeem as many miles as they can before that date.

In addition, I think it’s also smart to express your opinion of these pending changes. Not only should you email, Facebook and Tweet British Airways, but also get in touch with the credit card companies to let them know you aren’t happy that British Airways is making negative changes to the program.

The credit card companies are the ones with real power here. They buy billions of dollars in miles from the airlines, so if their top customers are raising a fit about the major devaluation of their currency, the credit card companies can put pressure on the airline to scale back the severity of the changes. You can send secure messages online to American Express and Chase or simply call the number on the back of your card.

While you may think your opinion doesn’t matter, it does. The issue at hand here is that the airlines are major copycats. If every other airline sees that British Airways can devalue their miles and pull the rug out from their members – just months after enticing them with lucrative offers, what will stop everyone else from following suit?

I don’t recommend getting crazy, but voicing your frustration via social media and through your relationship with your credit card company can be very powerful. It seems that British Airways has made their mind with the changes, but that shouldn’t stop us from giving them constructive feedback that they should keep their single Oneworld partner award chart intact. They made positive changes for their European-based members, so where is the love for the North American members? I don’t even need any “enhancements” - just leave the single Oneworld partner chart alone and I’d be satisfied.

What are your thoughts?

  • Anonymous

    In almost every scenario Points.com is a bad deal. As bad as these changes *may* be, I wouldnt freak out and just get rid of your BA miles. They can still be very valuable!

  • Anonymous
  • Alvin

    i think the difference is due to the origin city. if it is LAX, it is cheaper.. See your screenshot of Japan Air from Chicago to Tokyo.

  • Paul

    Thanks Brian. Much appreciated

  • Latimer

    Yeah, I do agree they can be very valuable, but I only collected them with 1 thing in mind: a honeymoon to Bali in 2013. I really doubt that a distance-based model would keep an SFO-DPS itinerary on the low end; the Pacific is just so dang wide :)

  • Asdfasdf

    it would be awesome if 2-3 hr flights on AA price at 20K miles + $5

  • http://www.euanross.com Euan

    You can ‘share’ your miles with other BAEC members, you can transfer up to 19,000 to a member (but there is a cost). BA don’t allow trading of their miles unfortunately.

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  • Adam27nyc

    This reply is total BS. Sorry does this guy “Euan” work for BA?

  • http://www.euanross.com Euan

    Just to clarify, that response is not mine but it is the response the representative of the BAEC gave on the FT forum. It is not my response. I don’t work for BA or even in the airline industry.

    I was simply posting the response from the BAEC here for the benefit of readers of TPG’s site.

  • Beachfan

    Thanks for the great coverage PG!

    These changes are bad, but my beef is how the fuel surcharge issue hit’s folks in North America harder than the UK members.

    If you are using it for things that go maximium YQ (like DEN-CPT), then you are talking $2280 for two in pure YQ, not including LHR APD if you stop over, other taxes, etc. LAX-CPT on a 241 cost $3200 with a stopover in LHR.

    DEN-CPT is double the YQ as LHR-SYD but within two hundred miles RT (DEN-CPT via LHR vs LHR-SYD).

    The “double” assumes they are booked in the same country. In fact, YQ booked in the US is 24% higher than YQ booked in the UK. Right now, long-haul more than 9 hours is 24% more in $ than in pounds ($285 vs. 145 pounds, with today’s fx rate being 1.622)

    This means the max YQ from the US is 248% of the max YQ ex LHR. The BA rep on FT confirmed these will remain the same.

    There is also award loading issues that discriminate against US west coast folks (maybe US east coast too, I haven’t been looking at that). They load west coast awards a month later than LHR-Africa or LHR-Asia awards, meaning no chance at hard to get routes. (Based on monitoring award availabilty from California from Dec 2010 to July 2011).

  • Andrew10412

    this is when you really start to see the ‘benefits’ that airline mergers are providing. every single program in some way or another is devaluing their loyalty program. with mass industry consolidation there is no real need to remain competitive.

  • Lglobal375

    Hey I just checked the BA site, and I don’t see any options for hotel redemptions. Is there something I’m missing or does BA truly offer hotel redemptions?

  • Anonymous

    This new program with hotel options won’t be launched until November

  • kevin

    Hey Brian-

    I wrote you an email couple of days ago but I need some more help.

    I am planning a family (2 adults, 2 children) trip from JFK to MCO, departing JFK on April 20 2012 and returning on April 26 2012.

    I was going to pay cash originally but with BA changes, I figured I would just burn the miles for this trip (I have over 200k+ miles).

    Checking AA.com, they have business class miles saver seats available at 25k (or 50k round trip), per person (total of 200k miles). Now I am fairly certain that this route only has economy and first class seats but according to AA, I should be assigned first class seats? Am I incorrect in assuming this?

    Checking BA.com, they are classifying these same exact seats as first class, therefore charging me x2 or 75k BA miles round trip, per person.

    Speaking with a BAEC agent did not help (two different answers by two different agents). They clearly saw the seat type at AA.com but yet they were unable to help me.

    Any thoughts if this can be resolved with a higher up at BAEC?

    Kevin

  • Anonymous

    I hate this situation, but I have had success in convincing BA agents to only charge me business class prices when its a 2 cabin configuration. However, BA.com has these flights listed as First class, so I’m not sure if you’ll be able to get it done at the lower price. Good luck, but this is a known grey area of the program. It never hurts to ask nicely!

  • kevin

    awesome, thanks for the advice. I did try to sweet talk one agent but it was no go but I may try again one more time.

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  • http://www.facebook.com/people/Pierre-Le-Van/886550570 Pierre Le Van

    To be honest, the new changes seem fair to me. The oneworld partner award was more interesting than redeeming BA flights. With the new changes, European and North American people will have more or less the same opportunities. It makes sense that the massive 100k offers were given to redeem mainly ba flights and not to enjoy a great loophole as the oneworld partner award system.

  • Jimmy

    Dude, you should ask BA to lower LHR-HGK route for fairness – not by increasing JFK-HGK route. And about the credit card promotion, you should also ask Chase/Amex why they don’t care about UK customers. And if you still feel unfair, move to US.

  • Tt

    brian

    what are some good awards for J travel with a 100k BA bankroll, with minimal OOP expenditure (i.e. 700 taxes to London is a horrible deal)

    im like south america, or far east, or even europe zone 1 (with OOP for sleazyjet to eastern europe…). spring 2012.

    possible for that time? do you predict good available also? im too confused on all the charts, and cursory search on ba.com didnt yield partner availability. trying to dump these miles before they turn completely useless…

  • Tt

    if it makes a difference, i am IAH based…. reading your subsequent BA posts now and the picture becomes slightly clearer but im still confused due too all the incoming changes…

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  • Anonymous

    YOu’ll want to book American airlines flights to South America/Asia/Hawaii/Domestic US. They have the least out of pocket taxes. Any milesAAver award should be bookable with BA miles- you’ll just have to call to get it ticketed

  • Tt

    thanks !!!

    what about the CX option to asia?
    and does BA enact OW blocking , or do the hide the availability?

    for example, IAH to SCL on March 22 – Apr 5 is available on AA.com but shown as unavailable on BA even when searching with partner awards….

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  • MJLouise

    Does BA charge close-in fees for AA redemptions? I’m looking at 3 one-way last-minute redemptions. The AA site wants an extra $225 for three close-in fees. If I’m looking at BA right, they are only charging $5 each even just a couple of days out.
    Sounds almost too good to be true LOL. Am I just not going far enough through the dummy BA booking?

  • MJLouise

    BTW these are USA domestic one-way redemptions, just to clarify.

  • Anonymous

    Nope- its one of the nice things using BA vs AA. AA’s feed can get nasty!

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