Posted on 05/03/2002 3:00:42 PM PDT by mhking
Friday, 3 May, 2002, 13:21 GMT 14:21 UK
Air Miles 'threaten dollar's dominance'
Air Miles currently in circulation are said to be worth $500 billion - making them the second biggest "currency" after the dollar.
| Air Miles facts |
| American Airlines set up first airline reward scheme 21 years ago, called the "Advantage Travel Programme" "Air Miles" originates from the UK 13 years ago Name now franchised to third parties, including British Airways who has owned the UK Air Miles operation since 1994 Source: Air Miles UK |
At its current rate of growth the stock of miles could overtake the dollar within two years.
The figures were calculated by the Economist, which reports that because there are so many unredeemed vouchers it will get harder for customers to secure the flights of their choice.
World currency
American Airlines was the first airline to launch a loyalty programme, called the "Advantage Travel Programme" 21 years ago.
Since then, some 100 million people around the world now belong to a frequent-flyer or loyalty scheme.
How many Air Miles do you need? |
| London to Paris (return): 450 London to Geneva (return): 950 New York (return): 6,800 |
Almost 50% of miles are earned without leaving the ground, as airlines sell miles to partners like credit card companies, telephone companies, car rental agencies, hotels and supermarkets.
UK history
Many schemes worldwide have now branded their loyalty programmes under the Air Miles trademark, which originated in the UK.
The Air Miles UK day-to-day operation has been run by British Airways since 1994, although the trademark is owned by an other organisation.
Six million people are members of the scheme in the UK.
The airlines and the feds seem determined to discourage customer loyalty and confidence in the airlines.
A circus of idiots.
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Then there was Arthur Clarke (or was it Heinlein?), who suggested that nuclear waste be made into coins. He reasoned that this would improve circulation and discourage hoarding. Amassing too much lucre might cause a critical mass, and if you knew your coins were nuking your gonads you would want to get rid of them more quickly. Lead-lined pockets might be inconvenient.
Me, I think that old mufflers should be money.
--Boris
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