Dividend Miles vs Aadvantage - basic price comparisons

[smit0847]

While I have a very good idea of what Dividend Miles redemptions costs when miles are bought at the right time (I did that handy comparison chart to Lifemiles last year and posted it on here), I'm unsure of how USDM compares to Aa. It's my understanding that although the redemption levels are similar the buy promos are not as generous (or frequent) so it generally costs more to do a trip on Aa than it does to USDM (I consider the OW carriers to be slightly more premium than *A so think it's fair there is a premium on Aa buy miles).

I think a number of people here are wondering whether to hold onto their DMs and hope they convert 1:1 to Aa given I believe Aa are usually worth slightly more because theyre more expensive to buy (because they're less discounted), whereas others are looking to burn as many DMs as possible before the switch. Others may be considering whether to jump into Aa now given it is inevitable that they'll end up in that program.

Could anyone who has basic knowledge of both programs provide any comparisons as to a cost analysis for the normal way to purchase (ie regular buy promos as this is the way most people on here buy them) and redeem miles in both programs? Even if its just for the most popular regions from Australia or Nth and Sth Asia, Europe and Nth America?

I'd do up another one of those comparison charts but I dont know the Aa costs as Im not on top of the normal promos.

 

[smit0847]

For example:

http://www.australianfrequentflyer....50-bonus-miles-until-47141-21.html#post771442

Most importantly, US regularly offer 100% buy/share promos thereby valuing their points at 1.75 cpp (ex taxes and fees). AA normally offers 30-35% (with the exception of the current 50% promo) Valuing their points at roughly 2.5-2.8cpp. That alone suggests the market has a very different valuation for the two FFP points (>50% for AA points).

Secondly, the award charts are much the same except AA offer one-way while US does not. But, in fairness to US they do offer an open-jaw or stopover in addition to your destination.

Finally, the award redemptions are fairly similar if you double the AA one-way award to compare a full return trip with US.

So while its still feasible that we will see a 1:1 points merger for the reasons you have stated, I wouldn't be surprised if wee se a lower conversion ratio. hence my apprehensive position moving forward until we get further clarification.

 

[burmans]

For example:

http://www.australianfrequentflyer....50-bonus-miles-until-47141-21.html#post771442

My understanding is that for AA 90K costs 1650*1.075+35 which is just over 2c (US) per point vs ~ 1.875c per point for US DM on one of their regular 100% bonus, of course this assumed these continue!

 

[casanovawa]

I thought someone did a chart for LM, USDM and AA for all the continental regions in terms of $s?? Not sure I could find it now... But roughly from my understanding (someone may want to correct it) the fact is AA miles cost a bit more to buy (because of less generous promos and this is even at their best 50% promo), and to get return journeys you have to buy two awards so putting them together it looks a bit like this in miles needed anyway (so can get a sense of what the $ values would be):

In J at least

Oz-NAm USDM = 110/120k (few different zones in Caribbean/meixco/US&Canada) AA = 125k
Oz-Eur USDM = 120k AA = 120k
Oz-SAm USDM = 120k AA = 65k * 2 or 50 * 2 or a mix (2 different SAm zones)
Oz-Asia USDM = 90k AA = 45 * 2 or 35 * 2 or a mix (2 different Asia zones)
Oz-Afr USDM = 130k AA = 100k
Oz-ME USDM = 120k AA = 90k (including India)
Oz-SWP USDM = 30k AA = 60k

(Several of the higher mile USDM zones could be brought down to 110k if you convince the phone operator to charge the US as your destination and have a stopover in the higher cost zone)

But anyway so you get a few winners and a few losers depending on where you are going....

But with AA, from my understanding, its only a stopover in your arrival or departure city in North America plus your destination, certainly no two continenatal zones like USDM, with AA using BA and IB flights will attract fuel surcharges to your taxes, if you can't get a direct Trans Pac flight to US its going to be two awards on the way there and two awards on the way back! AA i guess does allowed a mix option as only one way redemptions so i guess you could choose to experience an F redemtpion to a place and a J on the way back (or J and Y etc) where with USDM like QF one flight will up it all to the higher zone mileage and you can get F on i think all of the OW airlines unlike some of the *A airlines withdrawing F from USDM redemptions.

And in terms of buying AA usually have a cap for from 55-90k miles purchased a year, so to complete a return journery for destination over the 100k you either have to buy two lots into say a family or one dummy account and book two seperate redemptions, or buy one lot at the end of one year and another lot in the next year and that is your travelling done, which seems pretty annoying if i understand it correct, where as USDM you could buy enough miles for multiple trips in one year... Gues sthis doesn't take into account possible hotel/credit card sweeps or miles from actual BIS flying, just purchasing...

Without any golden loyalty handcuffs shackling me to OW airlines, for me USDM just worked much better and more cheaply... I can see maybe one or two advantages to the AA program if i have my understanding correct about something... But if its going to be a 1-1 loyalty mile swap, getting a the miles totals up via a some USDM purchaese could be good before the merger if AA intend to keep the silly annual buy miles restrictions in place...

Not an officianado of AA program either, but i don't think i have seen any offer from them that compared to that 100% share promo with USDM last year when you could get 100k miles for $1150 or so, you could hardly lose buying up with that if that offer was repeated again, never saw AA do any contest like a Grand Slam either... Maybe there runs to get to EXP or whatever some contests they do each year was the equivalent??? Not sure...

 

[burmans]

Not an officianado of AA program either, but i don't think i have seen any offer from them that compared to that 100% share promo with USDM last year when you could get 100k miles for $1150 or so, you could hardly lose buying up with that if that offer was repeated again, never saw AA do any contest like a Grand Slam either... Maybe there runs to get to EXP or whatever some contests they do each year was the equivalent??? Not sure...

Not so sure (unfortunately) we will see a GRand Slam again, and the 100% share promo is no given either. But yes, way better offers!