Posted by taxguru on May 28, 2002
Frequent Flyer Mile Scam
I don’t think Joe Bob Briggs has any formal training in accounting or finance; but he does an excellent job in analyzing the scam the airlines have been pulling for decades with their frequent flyer mile programs. As he very cleverly documents, these have actually become a form of currency in this country that can be used for almost anything, not just for flying.
This reminds me of an accounting class back in college, where we discussed the effects of unrecorded liabilities on the books of airlines; specifically unredeemed frequent flyer miles that would affect future revenues and expenses.
It also reminds me of the hilarious scene in the movie, Duets about someone trying to actually use his frequent flyer miles with a hotel and going berserk when he is confronted with all of the fine print restrictions designed to prevent real people from actually using the miles.
KMK
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