FlyerTalk Forums - View Single Post - How much do alliance airlines pay for FF awards?

Mar 21, 2002 | 10:32 am

#4

Dambus

Join Date: Feb 2002

Location: DUB/ORD/SIN/PVG

Programs: EI AerClub Concierge, EK Gold, BA Gold, BD Gold (Retired), HHonors Diamond, Bonvoy Lifetime Gold

Posts: 2,925

Good question. Do miles/points appear in "normal" company accounts as a liability?

I was wondering about it because of the KLM matching miles promo. Many people are hoping to get > 1,000,000 points, more or less for nothing, out of the promo which in theory should show up somewhere as a liability. I know they can restrict award availabilty and somehow "manage" the impact of award redemption on revenue but it's all a bit mysterious.

I also wonder if KLM managed to "buy up" cheap award miles from NW/CO at the end of last year (post 9/11). Presumably lots of people will use their promo miles for tickets to the States?

- Dambus

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