The Economist (not the WSJ) recently ran a stat from Randy that if FF programs ended today, it would take 23 years to burn off the outstanding miles assuming current usage rates.

FF programs are brilliant - the airline creates their own currency, and then sets the rules:
- Mostly non-transferable
- Sets capacity controls
- Sets transfer ratios
- Will sell miles directly, but will not buy
- Charging additional fees to use your own miles

A similar example is a casino. You can get all the chips you want, but you can only use them to play that casino's games, by that casino's rules. Now imagine if you had to pay a $75 fee to use the teller window.

As long as the public thinks that miles are worth 2+ cents, the airlines will keep churning them out. It is becoming more obvious by the day that they are worth increasingly less, as airlines add to the restrictions. I have relatives who call me and ask me why they cannot use the miles that they have been saving up for years for their upcoming vacation. They are learning the hard way - it's a one-way scam.

[This message has been edited by Tino (edited 05-22-2002).]