An American Airlines passenger is taking to social media to complain that her family was downgraded from business class on a transatlantic flight because “American needed to transport pilots” and so they took her seats. Her family was picked “because we booked with miles.”
The airline’s pilot contract requires placing the cockpit crew in the highest cabin on the aircraft (first or business) when being flown transatlantic (as well as transpacific, mainland – Hawaii / Alaska, and to/from South America) to work a flight. The agreement says:
In no circumstances will a pilot assigned to deadhead … be required to deadhead in any economy cabin.
Now this customer is “completely rethinking everything” about her commitment to earning AAdvantage miles. “We spent a lot of money to get those miles.”
American Airlines doesn’t publish – and refuses to release, even in response to DOT complaints – its official, internal downgrade policy. However, the order seems to be:
- nonrev passengers [except employees traveling as ‘must-ride’
- upgrades in order of complimentary, systemwides, mileage or cash
- award passengers
- paid business class, by fare bucket.
Within these categories, status level matters. And tie-breakers may be involved like booking or check-in time.
“There is no regulatory basis for the Complaint’s request to import Part 250’s boarding priority disclosure requirements into the downgrade context.”
It’s great that status plays a role here, I think. And American’s status system where one dollar of spend on their U.S. cobrand cards earns one loyalty point towards status means that their best credit card customers (who are their most profitable customers) are most protected within a category.
However, prioritizing people spending cash for a ticket over miles means that those credit card customers are still second class customers, and are more vulnerable when American’s premium cabins are overbooked, such as because of:
- aircraft swap, to a plane with fewer premium seats
- broken seats
- contractually-required seats for deadheading pilots
Here, American is offered a $600 travel voucher for the downgrade from business class from Miami to Milan. But DOT’s articulation of an airline’s obligation to “refund the difference between the original fare and the downgraded fare.”
- A $600 travel voucher is a goodwill gesture
- But doesn’t replace the required refund
- Which in this case is the miles originally charged for the flight, minus the miles American would have charged for the same lower-cabin itinerary when the award was purchased. That’s tough to ascertain because American no longer prices its own flights on a fixed basis.
Had this been a flight from Europe to the U.S. then EU261 would have applied, where remedies are clearer: 75% of the miles paid for the ticket (plus 75% of any carrier-imposed surcharges, which wouldn’t be applicable in this case).
American had an operational need for this family’s seats. They had an obligation to their passengers, and a desire to move pilots to Milan to operate another flight. They decided that getting that other flight moving mattered more, but that decision should mean making the customers whole whose tickets they’re reneging on.
If I were Citibank I’d make American Airlines rethink this priority. Citibank is American’s largest customer, and this passenger is Citibank’s customer – helping to generate part of nearly $6 billion in annual revenue at a reported 53% margin.
Ultimately an award ticket is a reward for loyalty. That customer should be treated better than a one-off passenger – and not get rug-pulled.
I would stand at the ticket counter, call Citi to cancel my two American credit cards, and then book my flight on United.
@that other other guy
Great backup. United does the same thing as AA. And united is the airline that started the practice of contractually putting their pilots ahead of Global Services members for gate upgrades on domestic aircraft.
You might want to rethink your rebooking 😉
United and Delta have been doing the same thing longer than American.
Gary, if the thumbnails are all just AI, can you please make one with some pilots napping in a lie-flat seat smiling, while the sad family looks in from behind the curtain in steerage. It would give that… je ne sais quoi… *chef’s kiss* to this most important, erudite posting on this beautiful Saturday morning. (And to those in the DMV, enjoy this weekend’s Grand Prix! @L737? At least I’ve got my 2nd round of Citi Nights in NYC inbound… 5ish hours!)
Your information is wrong by omission. The EU261 requirements are anything but clear as to how to treat passages who used mile to purchase their ticket. The rules explicitly state that compensation must be made in cash. There is no provision for payment in miles and a number of jurisdictions have held that this applies to award tickets given language of the statute. How they compute the amount varies.
Just as if not more important is that these regulations, but US and European are legal requirement that do not diminish or absolve your contractual rights. In other words they do not limit your ability to claim damages above and beyond the legally mandated payment.
Very few people, including every travel blogger seem to be unaware of this and I’ve repeatedly seen them explicitly state the opposite. While you don’t, your post is incorrect regarding payment being due in miles (the jury is quite literally out on this with conflicting decisions) and misleading in that the implication is that these amounts are limits on the airlines liability. They are not.
$600 isn’t even reasonable compensation for a single J to Y downgrade, never mind an entire family.
I wonder if a screen shot of the points required at booking would establish a baseline for adjusting the points difference. Anybody try this?
I agree with the point that Citibank is AAs largest customer. Starting to cancel all Citi accounts just might carry more weight since Citi actually has competitors to worry about. US airlines have become a de facto monopoly where the customer really has no choice in the matter. Time to break up the big 4 airlines.
This situation significantly recalibrates the wisdom of obtaining Citi co-branded AA cards or even the Strata card. It illustrates the devaluation of program points and removes the incentive of generating spend on Citi cards if those points are directed to AAdvantage program redemptions.
@MaxPower — Are you… advocating for Delta… on here?? What is this?!
Bottom line us sometimes you are forced to downgrade. As I can never find decent J TATL or TPAC AA trips, I pay cash. I find it completely appropriate that non-revs are furst, upgrades are second, and award travel is third, and all are ahead of me. I wiuld still argue that order is correct if I used award miles. These stories to me have a simple solution I can’t figure out why AA diesn’t do it. Appologize, give them back all miles used on that segment (or whole trip), give them free J TATL seats on a future flight. How wiuld you feel if they downgraded you and did that? I’d be very happy.
Who is paying for American miles? I got 400,000 for 400 bucks with Barclays credit card for family.
Spent a dollar on American Airlines. 400,000 miles for 400 hundred bucks with Barclay‘s credit cards.
How would Delta handle the same situation?
You should get 3x the difference in fare.
@1990 — Feel for anyone traveling out of DCA tomorrow :/ Citi nights part woohoo, enjoy!!
“It’s great that status plays a role here, I think. And American’s status system where one dollar of spend on their U.S. cobrand cards earns one loyalty point towards status means that their best credit card customers (who are their most profitable customers) are most protected within a category.”
But disproportionately affects everyone else who is unable to get a credit card, such as those with poor credit and thise who are not eligible to apply for cards because they’re not US residents.
So, my $0.02…
Forced downgrades should be handled like VDBs – the airline should have to solicit volunteers, and in addition to compensation the volunteers should have the right to choose either the downgrade, an alternative flight (including different routings or different dates at their option), or full-refund cancellation (in addition to compensation).
…….sorry but that’s how it should be. Pilots deserve to be in front part more than some mileage runners.