MilesBuzz! - Pam asked: How can I sell my Delta FFM to purchase tickets to Shanghai? Randy replied

Ask Randy (http://www.webflyer.com/interactive/ask_randy/) (new questions evry month; however, everybody who has access to InsideFlyer’s online edition could go to Wise Flyer’s archive – July 2004)

Pam, allow me to offer my first answer in the form of a question: Do you have a lawyer?

Seriously though, the programs, Delta included, frown on the selling of miles. True, it happens, but not at the pleasure of the airlines and they all have their Fraud Squads on the lookout for offenders. In the Terms and Conditions of Delta and other programs, there is a provision that in exchange for the ability to participate in the program, you agree not to "Buy, Sell or Barter" your awards.

Obviously you're frustrated because you haven't been able to get to China using your miles, but should you try to sell your miles, and Delta finds out, you run the risk SkyMiles will freeze your account. You have to ask yourself, "if I get busted, will it have been worth it?"

Not only could the airline freeze your account, the 'coupon broker' to whom you sell the miles might rip you off (yes, this happens -- they don't tend to be the most reputable businesspeople). And if the airline busts you, you'll lose all your remaining miles, and you might even receive a bill from the IRS (legal cases such as this get reported to them), since you may not have reported the sale of the miles as income.

As for the lawyer reference at the start of this answer -- within the past two years, another Delta member decided to sell their miles and got busted. Now they have filed a class-action lawsuit against Delta saying they only did so because they couldn't use the miles. The case has dragged on and is not likely to be settled or heard soon. My bet is that the court throws out the legal challenge. Whether we like it or not, an inability to travel to Shanghai is not cause to violate the Terms and Conditions you agreed to when joining that program. Judges are generally unsympathetic when they learn that seats actually are available, but that the member would have to redeem more miles than they want to get one.

In summary, I wouldn't sell the miles. The programs have their rules and they really aren't that difficult to live with. If you really want to get to Shanghai, ask yourself this question, "Would I be going if I didn't have any miles. If so, how might I get there?" Save the miles, use them for another day. In poker, the advice is to never "split the pair." In frequent flyer terms, it's "never sell the miles."

Some other threads on this board about buying, selling or bartering awards:
Anyone actually been caught by airline selling/bartering/trading an award? (http://www.flyertalk.com/forum/showthread.php?t=7177)
Selling on Ebay--Miles (http://www.flyertalk.com/forum/showthread.php?t=316275)
Sell Or Trade FF Miles? (http://www.flyertalk.com/forum/showthread.php?t=323008)

Good advice to Pam, but keep in mind that the airlines circumvent the T&C's, as they are not being applied mutually, when it suits their financial benefit. Namely:

1. Airlines will sell you miles;
2. Airlines allow you to "sell" your miles, for a fee, through points.com, a third party, to another member, calling it a "transfer;" and
3. Airlines allow you to convert your miles to another program, airline/hotel/etc., through points.com and other intermediaries, all third parties that charges for this service, not to mention, don't give full value.

The point is, the miles are sellable or transferable, but they restrict the transfer or sale, in order to generate additional income for themselves and restrict unfettered alienation. In every other instance where these schemes have been utilized by private corporations, unless they have some immunity from the antitrust laws, they have been found to be unreasonable restraints of trade.

2. Airlines allow you to "sell" your miles, for a fee, through points.com, a third party, to another member, calling it a "transfer;" and
3. Airlines allow you to convert your miles to another program, airline/hotel/etc., through points.com and other intermediaries, all third parties that charges for this service, not to mention, don't give full value.

Since the question was program-specific (DL Skymiles), a generic answer is misleading. You cannot sell Skymiles or transfer/exchange them to any other program (unless you operate outside Skymiles rules). You can, of course, GIVE them away to a Skymiles sponsored charity.

I thought Delta Skymiles could be redeemed with China Airlines or NWA, both will get the OP to Shanghai...

Since the question was program-specific (DL Skymiles), a generic answer is misleading. You cannot sell Skymiles or transfer/exchange them to any other program (unless you operate outside Skymiles rules). You can, of course, GIVE them away to a Skymiles sponsored charity.

You can not at this time. In 3/95, I transferred 10,000 Delta miles to HHonors, as they were part of Reward Exchange. I forget how I got rid of my other 4000, but I seem recall transferring them through points.com a long time ago.

Ok, i'm confused too. Delta lists a sky award with northwest of 60,000 miles from the u.s. to china. so why would you sell it in the first place?

You can not at this time. In 3/95, I transferred 10,000 Delta miles to HHonors, as they were part of Reward Exchange. I forget how I got rid of my other 4000, but I seem recall transferring them through points.com a long time ago.

You can move miles into Delta on points.com, but not out of. Don't know how long this has been the case.