Frustrated by his ability to find any sAAver fare availability, legendary gold investor Peter Schiff warned American Airlines yesterday that it is printing too many miles.
“American’s miles have seen their value steadily erode over the last few years,” wrote Schiff on his website, SchiffGold.com, yesterday. “Whereas twenty years ago you could easily redeem your miles for a trip from Dallas to Reno, today those same miles are practically worthless thanks to all these credit card sign-up bonuses. I mean, whatever happened to taking care of the people who actually fly butt-in-seat miles?”
Schiff urged American Airlines CEO Doug Parker to pursue a more hawkish miles policy at its upcoming American Open mAArket Committee meeting. If American does not change its ways, warned Schiff, it may go down the path of railroad loyalty programs from Weimar-era Germany.
“In 1919, you could go from Munich to Paris for just 500 glücklichpunkte, while by 1924 the very same trip required 7.2 trillion glücklichpunkte. People literally had to use wheelbarrows full of points to upgrade to business class. And visit the first class lounge for a pre-boarding drink? Forget about it.”
In the meantime, said Schiff, investors should place their faith in gold-backed loyalty programs. “Both Pan-Am and Trans World Airlines have been extremely stable for the last 20 years,” Schiff noted.
At press time, Schiff was investigating a web special fare that would have routed him through O’Hare with a four-hour layover and a 5:30 am departure time.