iscover
There are now some 2.7m registered frequent fliers in the US with an accumulated redeemable value of more than $A1.6 billion in tickets that could be cashed in the event of a major downturn in the economy. If this was to happen it would effectively greatly reduce th(! airlines' cash flow at a time of increasing costs and declining yield.
Frequent Flyer Nightmare
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Now in their seventh year of operation, that unique American invention, the Frequent Flyer programme has lately become a major nightmare for its creators.
Originally conceived as a means of promoting brand loyalty, the benefits and incentives nowadays freely available have expanded beyond the original concept to the point of not even requiring the participant to travel by air to gain points. Indeed from designated participants you can now hire a car, buy a suit, stay at a hotel or even have medical treatment and gain valuable bonus points. Perhaps the most incredulous bonus though is the one that includes points gained for travelling on Amtrak (the US passenger train system) between New York and Boston in direct competition with the airlines!
What has in recent times turned the entire Frequent Flyer system into something approaching a farce was the decision late in 1987 by Delta to join with American Express in allowing triple mileage points for any Delta tickets paid for with an Amax card. This naturally created an overnight landslide of patronage to Delta, via Amax, which was naturally duplicated by competing carriers within a matter of weeks. The present situation is that virtually all US carriers are now offering triple mileage points in addition to a range of other benefits that are, as was mentioned above, not even remotely related to air travel.
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