Join Date: Apr 2006
Location: Los Angeles, California
Programs: United LT-GS, AA LT-Plat, Hyatt LT-Globalist, Hilton LT-Diamond, Marriott LT-Titanium, Hertz PC
Posts: 15,831
The problem the airlines face is that miles are created in many different ways--not just flying. Miles are actually a nice revenue source for airlines; however, there's no equivalent of a central bank regulating what these miles are worth. Airlines have to maintain a contingent liability on their financials to reflect the value of these miles. I think that airlines will continue to find ways to devalue these miles, thus mitigating their liability.