I just wonder the logic? Spend 2 million plus to update Admirals club.....Then charge 200 dollars a year for membership ,sounds like a black hole. Total waste of shareholder money......Figures fuzzy math again !!!!! Admiral clubs clubs self supported? I dont think so!!!! Who pays the building rent? Oh I forgot,They all have a silver spoon in there mouth how degrading sitting among peasant's....
Waste of shareholder money? You're not privy to the numbers behind the entire Premium Services division, are you? Membership in the Admirals Club is actually $300 to $450 annually, depending on AAdvantage elite status. Membership including spouse is $475 to $775 annually, depending on status. In addition to cash, dues may be paid with AAdvantage miles at a disadvantageous exchange rate with a similar sliding scale depending on status. Here's the chart showing membership fees:
http://www.aa.com/i18nForward.do?p=/travelInformation/airportAmenities/AdmiralsMembership.jsp#membershipFees
Building rent is, of course, paid by AA (same as the rest of AA's terminal space) and the Admirals Club portion is charged to Premium Services.
When flying on international itineraries, every world-class airline permits its premium cabin passengers to access nice lounges, and AA is no exception. Platinum or Executive Platinum members can access the Admirals Club when flying to/from Europe, Asia and C and S America. Every time an AMEX Plat cardholder accesses the AC, AA gets paid. This year, my Admirals Club dues are free as a result of a promotion last year (fly 125k miles or more and you were eligible to receive extra miles and/or systemwide upgrades and/or one year free AC membership).
As mentioned by
eolesen, membership fees are just the beginning. Conference room rental and catering, expensive bar drinks (alcohol is not free at US domestic clubs, unlike at some other airlines) and for the past few years, expensive sandwiches and salads. At busy times, it's hard to get the bartenders' attention at the ORD club. International passengers in premium cabins do get a couple of free drinks, but domestic flyers like LGA-ORD have to buy their drinks.
I have no idea if the Admirals Clubs are self-supporting or not, but your complaints about them do raise an interesting issue. On the one hand, AA is notoriously cheap, both with its employees and its passengers. But all of a sudden, when it comes to Premium Services, you assume that AA just throws around big money without regard to the return that money provides. You fail to realize (or refuse to admit) that every decision at AA is driven by money. If someone at AA didn't think that Premium Services (including Admirals Clubs) didn't result in higher revenue than their cost, they simply wouldn't exist. When other airlines offer superior club facilities, AA is forced to remodel its clubs. The LHR Flagship Lounge (First Class lounge) and the BOS AC remodels were recently completed. In the past few years, AA has opened numerous remodeled clubs at MIA, JFK and LAX, as well as at other airports.
Silver spoons? Top tier AA customers don't get there by spending $500 or $1,000 per year buying once-a-year vacation tickets. Some of them get there by spending high five figures or more each year. Of course they will be given perks to attract that revenue that look to some like excessive luxury. AA needs some once-a-year Kettles but supporting your wages and work rules require (and were negotiated in the days of) healthy premium cabin loads.
Waste of shareholder money? So, not only are you an expert at whatever you do at AA, you're also an expert on premium revenue decisions? AA enjoys a revenue premium over other US-based airlines (the APFA's own economist Akins admitted it in his roadshows), so I trust that this is one area where management knows more about it than you or anyone else in the represented work groups. AA is actually bringing in higher unit revenue on its international operations, and if AA abandoned its Premium Services, you can be certain that revenue premium would evaporate. There are probably just a few people at AA who have access to the numbers proving that the spending on the Admirals Clubs makes perfect financial sense, and I'm certain that none of them are pilots, flight attendants, mechanics, rampers or agents.
Once again, complain all you want about what AA does to attract premium cabin revenues, but I don't see those complaints increasing your pay any more than complaining about executive pay. Why not focus on doing what it takes to convince AA management that you're more valuable than AA has realized?