How Do Air Miles Work?
- The air mile (frequent-flier miles) program was started, in the U.S., by American Airlines in 1981. It was called AAdvantage. Using its customer database, American Airlines found the customers flying the most miles on their airline. Its formula was simple: a mile flown for a free future flying mile. For added incentive, American Airlines partnered with Hertz and Hyatt to throw rental cars and hotel stays into the mix of rewards. It was a great success, and other airlines followed close behind with their own programs.
- Air miles are used as an incentive plan by different airlines. It offers a reward program to travelers who show their loyalty by flying with the same airline. It is less expensive for the airline to offer these rewards to customers they already have than to pay for advertising in an effort to gain new ones.
- The loyal airline customer receives credits for the miles he flies on a particular airline. They remain in an account, accumulating credits as the traveler flies. Although all the airlines have their own special conditions, generally there must be activity in the account within three years. These credits are eventually redeemed for free air travel.
- You must apply to an airline's air mile program to start accumulating air mile credits. You can apply online at Web Flyer (see resources). There, you can sign up for several different airlines. You can also sign up while you are at a particular airport or call an airline to sign up for its air miles program. Different airlines offer different incentives and have different rules and conditions. Study several and choose the one that works best for your needs.