US Airways used to be the ‘official consolidator of Star Alliance premium class inventory’, a role since taken up by Avianca LifeMiles selling points cheap so members could book awards on partner airlines. They make money selling other airlines’ seats at a discount, but for more than they pay for inventory that would otherwise go unsold.
When US Airways management took over American they brought the mileage sale philosophy to AAdvantage. Most months you can buy miles at a discount.
For October the offer is a tiered discount based on the number of miles purchased.
It sure seems like the discount being applied, though, is greater than it should be because at the top discount tier you’re buying miles at just 1.36 cents apiece rather than close to 2 cents.
The price is almost low enough where I’d buy miles, save for Vasu Raja’s recent comments about the direction he wants to take the AAdvantage program. As Chief Revenue Officer he’s been given oversight of AAdvantage as part of his portfolio.
(HT: One Mile at a Time)