Schumer aims to preserve consumers' frequent-flier miles
The federal government should regulate airlines' frequent-flier programs so earned miles don't expire without warning, Sen. Charles Schumer said Sunday.
"It's just outrageous that they expire," Schumer (D-N.Y.) said. "There's a huge number of miles and to allow them to expire at will is crazy. The airlines say they're free so we can take them back at will, but people have earned them."
In efforts to cut costs in recent years, airlines have made it more difficult to redeem miles for flights, even as more and more miles are issued by credit card companies and the airlines themselves. Schumer estimated 10 trillion unused frequent-flier miles are in circulation.
Frequent-flier model programs began 20 years ago, most with no expiration dates for the benefits.
In the past decade, airlines have created windows in which consumers must keep earning miles or lose them, Schumer said.
"I'm for not allowing them to be canceled," Schumer said, "but at the very minimum you have to give some notice. You may fly this airline because you think it has a better frequent-flier policy, and for the airlines to unilaterally pull them back at will is the most galling thing."
The Air Transport Association, a trade group for airlines, said each air carrier tailors its frequent flier miles programs as it sees fit, often based on consumer interest.
The group has seen reports of consumer complaints but doesn't track them. The system hasn't been targeted by regulators, they point out. The group says frequent flier programs remain popular with consumers and airlines try to make their programs as lucrative and consumer friendly as possible to attract and retain customers. With AP
