<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Tino:
Here's the stat to use (I'll keep the years consistent):
1993:
202 billion miles redeemed / 1867 billion outstanding = 11% of outstanding miles were allowed to be cashed in
2001:
342 billion miles redeemed / 7889 billion outstanding = 4.3% of outstanding miles were allowed to be cashed in
Looks like deflation to me, unless of course you think people are willing to hold their miles for 25+ years at that rate.
AAaLot is right on - the draconian restrictions make award seats worth no more than the cheapest fare sale prices.</font>
I again disagree with you and AAaLot.
You are both looking at the ratio of outstanding miles to miles redeemed. That is an incorrect analysis.
As times passed, the airlines have grown in size and so have the number of awards redeemed. For e.g. AA would never let you redeem more than 7% of RPM (AA's value) miles flown in awards. As they have increased in capacity, that means more awards are available i.e. increased valuation.
If I could not redeem AA miles for a F ticket from NYC-SIN/BKK/DEL/SYD in 1993 but now have more than six options to choose from in 3 of the 5 best 'F' products in the industry, I do not consider it a devaluation by any standard.
