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Originally Posted by guv1976
I think AA calculates the IRS "value" of the travel based on the distance flown, not based on any published fare. At least, that's how they used to do it.
My experiences on CO were from the years 1989 - 2000, so the calculation method may well have changed.
Also, although I think that FT readers understand that different airlines have (sometimes drastically) different employee travel policies, I do think that it is valuable to remind those who are being provided buddy passes that those passes are not "free" to the employee. .