Originally Posted by pushback
Regardless of usage there are still fixed costs associated with the administration of the program. The miles are also carried as a liability on the balance sheet. There can be costs associated with carrying liabilties on a balance sheet such as being viewed as more of a credit risk which implies the cost of borrowing goes up.
I will agree with that. I didn't mean to imply that the administration of the program or the cost of the software, etc was not incurred. I actually started to add to my original reply with that disclaimer but I changed my mind. Oh well.
