Is It Worth Paying Taxes by Credit Card, with Fees, to Fly Etihad First Apartment on the A380? April 18, 2016 is U.S. tax deadline day (thanks to today being a DC holiday, taxes are due April 18 this year).
A TravelSort reader writes “We are really wanting to fly the Etihad A380 Apartment. We will have lots of flexibility and will be looking into points bookings soon.
I have a significant IRS tax bill (6 figures) to pay. I have been using one of the credit card services to pay quarterly taxes and it's worked out well. I'm wondering if it's worth the $3,000 fee to get over 170,000 points via Amex Membership Rewards or Citi Executive AAdvantage to AAdvantage miles.
I know this would only work if there are award tickets available but hopefully with our flexibility, there will be. The way that I look at it is that there is no way that we could get even a one-way in the apartment for $3,000.”
Slightly Cheaper Than Buying Miles with Current AAdvantage Buy Miles Bonus
Since the reader mentioned it would cost him $3000 to earn over 170,000 AAdvantage miles, let's check the price per mile, which is 1.76 cents per mile. That's a good rate, as long as you take into account the effects of the recent 2016 AAdvantage Award Chart Devaluation. After all, the current AAdvantage Buy Miles offer, which is one of the best ever (see Buy AAdvantage Miles with 115K Bonus Worth It After Devaluation?) gives you 115,000 bonus miles when buying 150,000 AAdvantage miles, for a total of $4787 including taxes and fees, or 1.80 cents per AAdvantage mile.
First Class from the U.S. to the Maldives Has Increased 50K Miles Roundtrip
First Class from the U.S. to the Maldives used to be 90,000 AAdvantage miles, but it's now 115,000 AAdvantage miles each way, or 230,000 AAdvantage miles roundtrip. That's still better than using devalued Alaska miles, which is now 150,000 Alaska miles each way to fly Emirates A380 First Class (see Alaska: Why Emirates First Class Awards Increased 100 Percent with No Notice) and Etihad First Apartment is much nicer in almost all respects except for the shower room, compared to Emirates First Class.
So if you're buying AAdvantage miles at 1.76 cents per mile, an Etihad First Apartment one way award has increased from $1584 (plus nominal taxes) to $2024. That, as the reader states, is one way, and is only if you can find the award space. If you can, it's still a great deal compared to buying a paid ticket, which is often ~$14,000 roundtrip between NYC and Abu Dhabi, so over triple the price.
Flexibility Is Key for Awards
Etihad First Apartment was relatively easy to book for awhile, but as you'd expect, there was a flurry of Etihad First Apartment award booking before the AAdvantage award chart devaluation, and even for some later dates, such as in March 2017, there's no Etihad First Apartment Award availability between New York JFK and Abu Dhabi. And even last minute booking can often yield just 1 award seat, if any, for First Apartment.
Make Sure to Earn the Right Points / Miles
The reader mentioned earning either AMEX Membership Rewards points or AAdvantage miles, and I assume the Membership Rewards points mention is a typo, since Membership Rewards points don't transfer to AAdvantage miles. Perhaps he meant SPG Starpoints, since those do transfer to AAdvantage miles, with a 25% bonus when transferring in increments of 20,000 points. But it's a good reminder that you need to ensure you're earning the points or miles you intend to earn, and that you can transfer them to the miles you need to book an award.
Where to Stay in the Maldives
Since this reader plans to go to the Maldives, I'll also recommend Four Seasons Resort Landaa Giraavaru near Baa Atoll for the trip. It was our favorite of the 5 resorts we've stayed at in the Maldives, with the best beach, service, and great diving and snorkeling. Meanwhile, my husband's favorite resort was Soneva Fushi, which offers large “Crusoe” type villas, so more space than we'd had anywhere else in the Maldives, plus delectable complimentary inclusions such as the chocolate room, ice cream room and cheese room. And for an over the top experience, check out Cheval Blanc Randheli (Cheval Blanc is the hotel and resort part of Louis Vuitton), where Prince William and Kate Middleton vacationed. It even has outfitted its own custom seaplane, making the transfer experience much more pleasant, for a seamless luxury experience from start to finish.
Would you pay taxes with a credit card to earn AAdvantage miles, paying about $2000 for a one way award in Etihad First Apartment on the A380?
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