In case you missed it, Emirates has quietly started restricting certain premium cabin class redemptions. So what’s going on and why I think this could be a worrisome trend going forward? Let’s have a look.
Emirates Restricts First Class Redemptions
As per 2PaxFly, Emirates has now restricted mileage redemptions for First Class cabins on their own flights. Starting May 12, you will no longer be able to redeem classic rewards with the Emirates Skywards program for flights in First Class on Emirates metal, unless you have Silver, Gold or Platinum elite status with the airline.
However, this restriction only applies to the Skywards program. Even if you don’t have Silver, Gold or Platinum status with Emirates, you can still redeem for flights in Emirates First Class by redeeming miles with Emirates’ partners.
The Credit Card Game
Now, why am I slightly worried about other airlines picking up on this idea? If you look at Emirates’ co-branded credit card partners around the world, you will get some clues. This is not an exhaustive list but more of a sample of some cards around the globe to give you an idea of what’s going on.
I’ve compiled this chart below and I’ll then explain my reasoning for why this could be a slippery slope.
| Card Name | Country of Issuance | Annual Fee | Complimentary Status Awarded |
| Emirates NBD Skywards Savings Account and Visa Debit Card | UAE | $681 | Silver |
| Emirates NBD Sywards Infinite Credit Card | UAE | Joining Fee: $857, Annual Fee: $429 | Silver |
| Emirates Skywards Premium World Elite Mastercard®1,2 | USA | $499 | Gold (only for the first year) |
| Emirates Skywards Rewards World Elite Mastercard®1,3 | USA | $99 | Silver (only for the first year) |
| Emirates Skywards ICICI Bank Emeralde Credit Card | India | $140 | Silver |
| Emirates Skywards ICICI Bank Sapphiro Credit Card | India | $70 | Silver (only for the first year) |
Analysis
As you can see, there’s already a precedent in place globally. You’ll see that whether it’s the US, India or the UAE, issuers are granting complimentary status. In some cases, it’s for simply having the card and paying the annual fee. In other cases, it’s complimentary for the first year, with a spend requirement in place for the second year.
Not that I want, but I could easily see more airlines around the world copy this model.
Step 1: Restrict premium cabin award redemption only to certain elite levels.
Step 2: Offer elite status via co-branded credit cards for the first year with a heavy spend requirement for the second year to keep the elite status. In other cases, offer complimentary elite status but charge a very hefty annual fee like $695 or more.
Step 3: Offer lots of credits on these high annual fee cards split quarterly/monthly/annually and keep the rest of the money via breakage.
The Pundit’s Mantra
Chase has already shown signs of going the Amex way, if you look at the way they’ve refreshed their United credit cards. Already, co-branded cardholders see expanded award availability while booking with United. Similarly, Delta co-branded cardholders get an automatic 15% discount on mileage redemptions. I won’t be surprised if more airlines copy the Emirates model by restricting certain premium cabin redemptions to elites and then tweak their card offering to either make customers sign up for these high annual fee cards to get automatic status or put in place a very high spend requirement to attain and keep it.
What do you think about this change by Emirates? Do you think other airlines will copy this? Tell us in the comments section.
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