You may want to try and find a May 2001 issue of InsideFlyer around - we do a very complete historical look at the start of these programs.

Anyway, American did not have the first frequent flyer program - Western Airlines did. American did have the first 'mileage-based' program as is the clue in your question. Bob Crandall did not invent these programs. While the President of American at this time - thus the fatherhood, it was actually the idea of their advertising agency at the time who also handled some bank accounts and noticed the interest toward motivatiing people to open up new bank accounts for a reward of a toaster, etc.

Tell you what. I'll find the online version of it and have the guys post it up on this link later today:
http://www.webflyer.com/company/pres...tats/index.php

also, for this and more interesting things - click on over to our growing time line of the history of these programs:
http://www.webflyer.com/interactive/timeline/