Originally Posted by
fmp17
I mean miles/points that will NEVER be used. I assume this is what airlines record as "Breakage" in their financials. But this then opens the question as to how a program knows the miles will never be used? Is this because of inactivity in an account? Presumably in your friends situation the account is active, i.e. continually building points and would not be classified as breakage. The reasons as to why the miles/points will never be used is what I am trying to determine.
the now standard [sorta] 18 mo no activity expiration is probably the largest factor, even tho the al will try to get you to buy them back.....
some occur when the acct holder dies and no one tries to get that part of the estate....
i suspect that no 1 will close an account w/a useful mi count because they are mad at the a/l....
people in nursing homes probably won't use theirs unless their family members ask, but these will prob expire for no activity....
good luck
edit to add....i think that breakage is mi's that disappear from the account and therefore will never be used....are you saying that breakage can be forecast and booked in anticipation based on past stats? and used to reduce the liability?...could be....accountants & attorneys can be a firms most productive people...