FF programs, in my opinion, help the airline's bottom line. Basically, a certain percentage of each ticket price is profit. To reward repeat customers, airlines could refund a percentage of the profits in cash/cheaper prices, or they give this abstract thing called "miles" that sit in an account and DO NOT earn interest. Even better you may never use those miles... so in a sense they give you a discount that is not a discount.

Reminds me of that episode of "Cheers"..
(Forgive my terrible memory)

Woody: "I want a raise"

Rebecca: "Oh.. Is that all you want? I thought you wanted a title. OK the raise.."

Woody: "Hey wait a minute, what is this title thing. Maybe I want that."

Rebecca: "Oh, no Woody. You want a raise and a raise.."

Woody: "I want a title! And I will not take no for an answer!"

Rebecca: "OK.. OK.. I see you have made up your mind. You are now Senior Bartender"

http://www.flyertalk.com/forum/biggrin.gif

nope....

One point about which I have to agree with the writer -- too much whining from frequent flyers.

That's why I filter my email.

Lew - I think you're the only one who got it right. I mean, just take a look at how well it's written.

All - It's too bad that the writer won't see the response to his missive. Don't feed the troll. http://www.altairiv.demon.co.uk/troll/trollfaq.html

This Dude is just jealous cause he has NO STATUS..... http://www.flyertalk.com/forum/biggrin.gif

I AGREE 100%, THIS GUY DOES NOT HAVE THE BRAIN TO TRAVEL FOR FREE OR ENJOY ANY KIND OF FREEBIES.

I promise to keep doing my JOB the right way, traveling for free as much as I can.


------------------
600,000 Miles, AAdvantage Platinum - Priority Club. Free Flyer for 8 Straight years.

Actually, I heard he has top level status in Greyhound's program. http://www.flyertalk.com/forum/wink.gif

I'm sure he'll be real successful in convincing all the required congressional representatives. They tend to travel more that a lot of us!

Well, maybe not as flawed as you might think. I would guess that 90+% of top tier FFers get their miles from business travel, all of which is taken as a tax exemption, and the business FFer (and now government traveler) receives them tax free. And the airline cost of the extra First Class seats, special 1K lounges, etc. are also all non-taxed business expenses. The grandmother who only flies once or twice a year to visit her grandchildren has never been in first class and never flies often enough to get a free ticket. Meanwhile the 1Ks here pay not a cent nor any taxes for their upgrades and SWUs and free trips and are forever whining about how they don't get enough.

The taxes the 1Ks DON'T pay, ARE being paid by that grandmother. Non-tax paid business FF miles ARE a tax fraud. Absolutely, and all the rest of us are paying for the 1K's free bennies.

If the email writer were serious, they would not be writing congressmen (probably the most egregious users of FF benefits), but file a simple suit in a District Court. It would take a few dollars, and a little time, but I have no doubt that, given the egalitarian preferences in our society, in a few years, all the FF programs would either be gone or radically changed.

Bruce

The writer is assuming that it costs the airlines money to operate their Frequent Flyer Program. And I would say in most cases that his is probably not true.

First, the airlines get paid by all of their partners (telco's, hotels, restaurants, credit cards, etc.) for their miles (typically $.01 to $.02 a mile) and in many cases receive fixed payments, marketing buckets, etc. as well. I imagine this subsidizes a huge amount of their costs.

Second, every mile awarded is not necessarily ever used. Miles expire, some people will never use, and some will never accumulate enough. I would imagine that 25-50% of miles awarded are never put to use.

Third, as I think someone touched on before, these programs encourage people to fly more and encourage loyalty. It's tough to assign a dollar value to this.

Fourth and finally, redeemed awards may say us $300 on a RT ticket, but actually cost the airlines much, much less. In most cases, FF awards are limited based on loads, so it usually unlikely that they would have forgone revenue anyways.

These programs help airlines in a multitude of ways. Cutting them would actually make the airlines worse off. Something that the writer simply does not understand.

Let me start with a few quotes which made me giggle:

I wonder if he thinks he's the only one of his kind.


I thought taxes were used for pork projects!


Is he kidding? The government has been doing that for years. Let's see Chrysler, farm subsidies....
---------------------------------------

Below is the heart of his problem---His dear neighbor! This man is simply jealous; that's all.

So is this a call to arms which we as FTers should be alarmed? Nope. Just a bitter man who needs to get over his neighbor.

dert- it does cost a/l's money to do ff programs. i spent 2 hrs today talking about an award . i assume that the person is being paid.

Ah, actually no they aren't. At least the IRS doesn't think so, and last I heard they are the last word on tax fraud. http://www.flyertalk.com/forum/wink.gif

I think they're just early. April 1st isn't for another few weeks.. http://www.flyertalk.com/forum/wink.gif