FlyerTalk Forums - View Single Post - Miles devaluation - trend or here to stay?
Old Sep 13, 2006 | 10:48 am
  #3  
ContinentalFan
FlyerTalk Evangelist
50 Countries Visited
5M
100 Nights
20 Years on Site
 
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.
ContinentalFan is offline