Originally Posted by
Evan!
True to some degree but Amex and Avis miles are sold to Amex and Avis. They are not given away for free. The medallion bonuses are free miles from Delta to medallions. These bonuses are directly related to how many MQMs you earn. So although MQMs are not redeemable they can affect the amount of redeemable miles are out there.
If there is no cost to MQMs then why don't all airlines offer 10 elite miles per mile flown? Why do some offer only 50% accrual on certain fares? If there is no cost then why not give away more?
The points you make are good ones. But perhaps you do not recall when DL tried to give 50% miles on LUT fares. This Pavlovian strategy is designed to get people to pay twice as much for the very same airline seat... it has nothing to do with the cost of the miles. If the miles were to be distributed in a cost efficient way, it would be a dollar-based system. And a $7000 J fare would get more than 1.5 miles.
Ultimately, DL controls the rate at which these miles are redeemed. I am somewhat glib when I say there is NO cost, but as far as an MQM bonus promo, there is almost no cost.... compared to the potential for lost business.