Originally Posted by
fmp17
The reasons as to why the miles/points will never be used is what I am trying to determine.
Don't know if this really helps, but a few ideas to consider:
- Expiration: No activity for two years = Breakage
- Changing Point Redemption Values: When you report liability for miles, I'm sure that you have to put it in monetary terms, as if it was a currency. If the airline inflates the cost for redemption, they are effectively devaluing their "currency" which would allow them to write off a portion of their accumlated mile related obligations. A 10% overall increase in prices is basically the same as a 10% write off of miles (or?).