American Airlines has introduced a new bidding for upgrade system, so far only available for a limited set of flights.

They’ll let non-elite members make an offer starting 6 days prior to departure, and you find out at least 24 hours before the flight if it’s been accepted. Your credit card is only charged if the offer is accepted. American does not promise to accept any offers even if there are first class seats open.

Cancellation and Refunds of Successful Offers

After you’ve made the offer you’ll be given a chance to revise it, although there’s no refunds once your offer has been accepted — unless irregular operations prevent you from receiving the seat you’ve won.

I don’t like the terms and conditions of their refund policy in the event of irregular operations, though:

In the event your Offer was accepted and your credit card was charged the Offer amount but the Upgrade was not provided, you may apply for a refund at www.refunds.aa.com. Your request must include the original boarding pass for the flight in question. If you are not able to provide the original boarding pass for the flight in dispute, American Airlines is under no obligation to refund you for the amount you paid for the Upgrade.

I guess this means you shouldn’t check-in with the American Airlines mobile app, because that would mean you wouldn’t have an original boarding pass to provide to substantiate the refund request.

American Has Long Offered Excess First Class Seats for Paid Upgrades at the Airport

American has historically offered buy ups at the airport as well, occasionally disappointing elites, but their system is set up with the intention not to do that — to offer paid upgrades only when they project that all elites will be accommodated with their upgrade requests. This sometimes gets foiled when passengers change flights, but it’s rare, and American remains fairly good about holding back first class seats until the gate and as a result upgrade top elites who do make changes.

Paid Airport Upgrades CAN Come at the Expense of Elite Upgrades

United offers non-elites “buy up” offers at check-in subject to availability. And since those offers are sometimes made when elites haven’t cleared the upgrade list, and will not clear the upgrade list, that has generated anger amongst United’s elite flyers. This is doubly so because the offers made to general members on United are sometimes quite cheap — “tens of dollars” — that elite members would have accepted rather than roll the dice on a complimentary upgrade if they’d been given the chance.

We’re Assured the ‘Make an Offer’ Upgrade Program Will Come Only After Elites are Upgraded

American continues to assure that this philosophy will prevail — that they don’t intend to offer paid upgrades except when they are already satisfying elite upgrade requests.

Elite Status Members: AAdvantage elite status members (Gold, Platinum and Executive Platinum members) should continue to request 500-mile upgrades (complimentary or purchased) as normal. This option is offered to passengers who aren’t able to use 500-mile upgrades, either because they aren’t AAdvantage members, or because they are traveling on fares that are not eligible. Rest assured that elite status member upgrade requests will continue to be given priority and will not be impacted by this program.

(Underlining mine.)

If true, then this just represents a change from the method they use to sell those excess seats – instead of a fixed-price offer at the check-in kiosk, a price customers have said in advance they’d be willing to pay.

Nonetheless, if the test is successful I do worry that American will be tempted to generate even more revenue, at the expense of elite members. But for now we have no reason to believe that’s in the offing.

The System is Being Increasingly Used By Airlines Around the World

Here are some other airlines using the same software currently.

If you’re not an American Airlines elite, you may soon have the opportunity to bid on upgraded seats. We’ll see what excess first class seats are worth to passengers, soon enough!

(HT: NotiFlyer)

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