Football team and FFP parable in parentheses regarding award redemption disclosure.

Question:
TEAM: How many TOTAL points has our team scored?
100
FFP: (How many TOTAL award redemptions are there?)
(1 million)

TEAM: Is that good?
Yes, as our opponents have only scored 80 points
FFP: (Is that good?)
(Yes, its about 10% of our total seat inventory)

HERE'S THE QUESTION WE NEED TO START ASKING.

TEAM: How are the 100 points that the team has scored been distributed?
Um, uh, oh, uh........
Game 1 Our team 100 Other team 0
Game 2 Our team 0 Other team 20
Game 3 Our team 0 Other team 20
Game 4 Our team 0 Other team 20
Game 5 Our team 0 Other team 10
Game 6 Our team 0 Other team 10

With proper context, that '100 points' scored translates into a 1-5 win-loss record.
Not so impressive, right!

FFP: (How are the 10% of the seats for award redemption being distributed?)
(UNTIL NOW, THIS QUESTION HAS NOT BEEN ANSWERED BY THE FFPs, but we have a hunch our FFPs aren't doing much better in reality than our football team!!! So let's start asking...)

*** Is it 10% of EACH flight or 10% of ANY COMBINATION of flights on a route for awards

For example: JFK-LHR
Flight 1 weekday/peak 200 seats
Flight 2 weekend/nonpeak 200 seats

10% awards on EACH flight on a route:
Flight 1/peak: 20 award seats
Flight 2/offpeak: 20 award seats
versus
10% awards on ANY COMBINATION of flights on a route:
Flight 1/peak: 5 award seats
Flight 2/offpeak: 35 award seats


*** Is that 10% of EACH class of service or of TOTAL amount of seats for awards

For example: JFK-LHR 300 Coach 40 Business
10% of EACH class of Service 30 Y 4 J award
versus
10% of TOTAL seats 34 Y 0 J award

*** What percentage of the 10% award seats are 'standard' awards versus 'premium' awards.


These very simplistic examples demonstrate how '10% of all seats were awards' is not enough info to assess which programs provide the best opportunities for their customers.

I think it is extremely reasonable to request the same TRANSPARENCY from our FFPs that we are demanding from our stock and mutual fund companies, where we also have 'investments'.

Without the reasonable ability to understand, let alone redeem mileage, MileageBuzz will be an increasingly irrelevant place to post.

Since this lack of full disclosure issue affects EVERY FFP, FT can be a conduit for industry-wide reform.

[This message has been edited by beaubo for formatting only (edited Dec 17, 2003).]

[This message has been edited by beaubo (edited Dec 17, 2003).]

The problem is that a frequent-flier mile does not have a well-defined legal structure or definition wrapped around it.

The organizations that would demand that transparency - the SEC, IRS, etc. - don't really know what to make of FF miles. Therefore, the programs don't have to operate the same way your mutual fund has to operate. They can print currency all day long and sell it to partners at 2 cents a mile, and then carry it on the books as some miniscule amount. They can change the programs at any time to effectively make the miles worth more or (in most cases) less. They can decide when you can redeem your miles and when you can't. It's all perfectly legal because miles are not a currency, a commodity, a futures contract, a coupon, a guaranteed discount, or anything else with a solid legal definition.

This vagueness benefits the airlines greatly, but it benefits us too in that the IRS generally ignores our mileage "earnings".

As for your scenario of 5 award seats on a peak flights vs. 35 on a non-peak flight, I've always assumed that this is how the programs have worked forever. I don't think it's a new idea: I guess it doesn't bother me much because that was my expectation when I started accruing miles. My FF history has mostly been with AA and UA, and with those two I have usually been able to redeem my miles when I've wanted to, provided that I have a little flexibility.

Maybe I'm thick, but you're going to have to further explain to me why you would have the right to demand that your airline tell you exactly how they allot frequent flyer seats.

Frequent flier programs - including "your" points, "your" card, and everything else - belong to the airline. Their accountability to you falls far short of what your mutual fund manager owes you when dealing with your investment money.

I share your curiousity but I doubt it will be sated any time soon.

[This message has been edited by YYZC2 (edited Dec 17, 2003).]

First off, the original poster "requested" that FFP's provide the information.

Secondly, my Aeroplan T's & C's state that the points "belong" to the "account holder". However, other T's & C's take away pretty much all rights associated with such belonging. Ownership of the card isn't stated in the agreement or on the card.

The only legislation I can see applying is (in Canada at least) either the federal Competition Act (regarding deceptive or misleading advertising) or the respective provincial trade practices act in Ontario whose laws are referenced in the Aeroplan agreement. The application here would be the inducement to purchase based upon a benefit (FFP) that can't be effectively utilized as advertised.