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A frequent flyer program (FFP) is a service offered by many airlines to reward customer loyalty. Typically, airline customers enrolled in the program accrue points corresponding to the distance flown on that airline. Accrued points (also known as frequent flyer miles) can be redeemed for free air travel; for other goods or services; or for increased benefits, such as airport lounge access or priority bookings. An airline is an organization providing aviation services to passengers and/or cargo. ...
The first, and still largest, frequent flyer program is AAdvantage, sponsored by American Airlines, launched May 1, 1981. AAdvantage is the frequent flyer program of American Airlines (AA). ...
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Points accrual
The primary method of obtaining points in a frequent flyer program is to fly with the associated airline. Most systems reward travellers with a specific number of points based on the distance travelled (such as 1 point per mile flown), although systems vary. In Europe, for example, a number of airlines offer a fixed number of points per flight regardless of the distance. The calculation method can become complicated, with additional points given for flying first or business class, and often fewer points given when flying on discounted tickets.
With the introduction of airline alliances and code-share flights, frequent flyer programs are often extended to allow benefits to be used across partner airlines. The Skyteam logo The OneWorld logo The Star Alliance logo An airline alliance is an agreement between two or more airlines to cooperate for the foreseeable future on a substantial level. ...
Code sharing is a business term which first originated in the airline industry. ...
Many programs also allow points to be obtained not just through flying, but by staying at participating hotels, or renting a vehicle from a participating company. Other methods include credit cards that offer points for charges made to the card, and systems which allow restaurant diners to earn miles by eating at participating restaurants. Credit cards An array of various credit cards. ...
Programs differ on the expiration of points. Some expire after a fixed time, and others expire if the account is inactive for an extended period (for example, three years).
Customer status Many frequent flyer programs identify travellers who fly more than a few times per year by awarding them different status levels, which in turn give a number of benefits that cannot otherwise be purchased. Status levels vary from scheme to scheme, but benefits can include: - Access to business and first class lounges with an economy ticket
- Access to other airlines' lounges
- Increased mileage accumulation (such as doubling or tripling)
- Reserving an unoccupied adjacent seat
- The ability to reserve specific seats, such as exit row seats with more leg room
- Free or discounted upgrades a higher travel class
- Priority in waitlisting or flying standby
- Preference in not being bumped if a flight is oversold
Some programs even permit elite members to reserve space on sold-out flights, giving members the ability of bumping regular passengers. Customer status is based on the number of miles actually flown with the airline, and points accrued through other methods such as credit cards purchase are not considered. Some airlines will recognise a customer's status with a competing airline, and grant them the same benefits. A travel class is a quality of accommodation on public transport. ...
Some airlines offer accelerated admission to their elite programs through special promotions, such as flying 25,000 miles within one month gains a top-tier membership normally reserved for passengers flying 100,000 miles per year.
Bankruptcy In the wake of the September 11 attacks, some airlines have faced financial difficulties, raising concerns among frequent flyers that their points could be lost or devalued. All airlines include provisos in their program agreements reserving the right to modify or eliminate them at any time. But since miles are a strong customer incentive, troubled airlines avoid their elimination in bankruptcy proceedings, and indeed may expand them or make them more generous to elite members and high fare passengers in order to win sales. The explosion resulting from the crashing of United Airlines Flight 175 into the South Tower. ...
The examples and perspective in this article or section may not represent a worldwide view. ...
Furthermore, since most airline miles are never claimed, the programs represent a relatively small liability, and indeed can represent a profit center. Since the 1990s, U.S. airlines have sold billions of miles to partners such as credit cards, hotel chains, and car rental agencies, who offer this "currency" as an incentive to purchase their own services. Any effort to curtail the awarding of miles would thus endanger partner relations and another revenue stream. Notably, the banks backing several airline-branded credit cards have been a key source of airline financing, including United Airlines (Bank One), US Airways (Juniper Bank) and Delta Air Lines (American Express). Seinfeld was a pop cultural phenomenon during the 90s and became one of the most popular TV programs ever. ...
A hotel is an establishment that provides paid lodging, usually on a short-term basis. ...
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A US Airways 737 at Chicago OHare US Airways is an airline based in Tempe, Arizona, owned by US Airways Group, Inc. ...
Delta Boeing 757-232 at Los Angeles International Airport in August 2003, showing the livery the airline instituted in 2000. ...
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Historically, the record is mixed. U.S. airlines have usually honored miles held in the accounts of acquired airlines. For instance American Airlines converted members of TWA's "Aviators" program to its own, as did Air Canada for Canadian Airlines' "Canadian Plus" program members. Sometimes, miles were honored by a close partner; Continental Airlines assumed Eastern Air Lines' program when it failed, as did Delta of Pan Am's. Bankrupt Swissair miles were transferred to Swiss International Air Lines travelclub who were transferred to Lufthansa's Miles and More after the acquisition of the Swiss carrier. A T&WA Douglas DC-3 is prepared for takeoff from Columbus, Ohio in 1940. ...
Air Canada Boeing 767-300 (C-GGFJ). ...
Canadian Airlines International Ltd. ...
Continental Airlines (IATA: CO, ICAO: COA, and Callsign: Continental) (NYSE: CAL) is an airline of the United States. ...
For the Chinese airline, see China Eastern Airlines. ...
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Swissair MD-11 Swissair, short for Swiss Air Transport Company Limited, was Switzerlands national airline for 71 years (1931–2002), established when the airlines Belair and Ad Astra Aero (To the Stars) merged. ...
Swiss International Air Lines (short: Swiss) is the principal airline of Switzerland operating scheduled services in Europe and to North America, South America, Africa and Asia. ...
Lufthansa (Deutsche Lufthansa AG) is the largest German airline. ...
It has been suggested that this article or section be merged into Lufthansa. ...
Members are at greatest risk of losing their miles when an airline liquidates. All miles and privileges were lost, without recognition from any other carrier, in the cases of Midway, Braniff, and Ansett Australia. Midway Airlines refers to two airline companies in the United States. ...
Braniff International Airways was an American pioneering airline that existed from 1928 until 1982. ...
Ansett Australia or Ansett was a major Australian domestic and international airline, flying many passengers around Australia and to many destinations in Asia at its height in 1996. ...
Accounting issues Business travellers typically accrue the valuable points in their own names, rather than the names of the companies that paid for the travel. This has raised concerns that the company is providing a tax-free benefit (point-based rewards) to employees, or that employees have misappropriated value that belongs to the company, or even that is a kind of bribe. However, the U.S. Internal Revenue Service has not as yet made any move to tax mileage programs, and most companies consider the miles earned by their employees to be a valuable personal perk that in part compensates for the daily grind of frequent business travel. A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...
Bribery is the practice of offering a professional money or other favours in order to circumvent ethics in a variety of professions. ...
Seal of the Internal Revenue Service The Internal Revenue Service (IRS) is the United States government agency that collects taxes and enforces the tax laws. ...
On the airline side, the points represent potential non-revenue travelers on its books. These must be carried forward on balance sheets as an outstanding contractual debt for an indeterminate time, although the actual value (or loss) may be difficult to determine for any particular period.
See also It has been suggested that Loyalty program cashback be merged into this article or section. ...
In marketing, sales promotion is one of the four aspects of promotion. ...
External links - A frequent flyer program research tool.
- A frequent flyer discussion site.
- Tracks many frequent flyer miles through a single website.
- Frequent Flyer and Frequent Guest Bonus Mile/Point Guide.
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