Originally Posted by
Shareholder
And going back through the chain of history, AE miles technically expired within 12-months of the termination of the program. Until AE became a separate company and then rewrote its rules (to include expiring miles terms specifically) the AE program terminated at the end of each year, and miles expired at the end of the following year. AC renewed the program each year, and in doing so the life of the earned miles.
1. I'm not sure whether despite the T&C's AC could have capriciously "terminated" the plan at the end of a year without the courts holding that there would be a liability owed to people with points. Presumably this is why global airlines are required to book significant liabilities for their outstanding points despite the fact that the T&C's generally have an expiry date.
2. I'm not sure whether courts would hold that the
certain expiry of points after seven years was a fair trade for the
theoretical possibility that a going concern would thoroughly alienate its customers by exercising their declared right to terminate the program.