That situation was heavily debated by the bureaucrats in DC. On the one hand, you don't want government employees benefiting from frequent flyer programs when the taxpayer is the ultimate source of payment.

On the other hand, the Federal Government is the single largest purchaser of airline tickets in the U.S. And probably the world. That spending power creates a certain level of stability in the airline industry. Plus the Federal Government played an important role in helping airlines recover after 9/11.

Does it make sense to let all those frequent flyer miles go unused and completely wasted? Ultimately, the decision was to allow employees to retain their miles. Overall, I think that decision was a good one, because it encourages people to help out the economy by traveling, which generates more spending and more tax dollars in the long run.