Loyalty Programs in the airlines sector (4/4)

Posted on February 2, 2009 by Matthieu Desiderio

The Mile, second currency behind US Dollars… Is this true?

If the Mile were a currency, it would be a non-convertible one, as every airline has its own mile accounting structure. The common feeling which customers may have is that FFP life trend is like real life inflation “earn less, spend more” (see part 1).

It is almost impossible to have a global view of the worldwide FFP Economy, as some of the key figures are the best kept secrets among airlines:

number of active members (airline only communicate “inflated” total numbers);
total number of valid miles;
redemption/accrual ratio; and
FFP costs & earnings figures.

One very interesting indicator will be the first FY report of Groupe Aeroplan (see part 2) which, as a public listed company, will have to disclose their financial results.

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