What are Frequent Flyer Miles?
Frequent Flyer Miles are a type of reward by airline companies, honoring their loyal customers, with points that they can redeem in exchange for their services. They are counted as per the air ticket price, distance traveled, or some other criteria. The points keep on accumulating against the customer, who can later redeem them for some service which is offered by the same airline company. These services may include an up-gradation to First or Business class, entry into the premium lounge, a discount on ticket fare, and so on.
Why & How to Sell?
On the face of it, it is illegal to sell your accumulated miles, as they are deposited exclusively to your name. Notwithstanding there exists, some sites and some brokers, famously known as ‘mile brokers’ who exclusively deal with such trades. They charge a commission amount on every deal successfully done and thus carry on their business. Such brokers can be found online as well as offline.
There are many reasons why you may want to sell your miles, some of which are mentioned below:
You may have a large set of miles accumulated against your nameYou need the money urgentlyYou value the monetary benefit against them than the services offered by the airlineYour miles might soon be expiring and lying unused.
Is selling frequent flyer miles prohibited?
There isn’t any law that specifically deals with selling ‘miles’, which leads to its abuse by some. But some laws might be extended to cover such dealings if the need arises. Some of them are mentioned below:
Contract Law
There exists a general and implied contract between you and the airline company as and when there commences a business relationship between you and them. You are thereby expected to abide by all rules and regulations of the airline company, in a bona fide manner. Such transactions between people exchanging Frequent Flyer Miles are ‘void’ in nature under contract law.
Breach of Trust
The Miles allotted against your name are expected to benefit you. They are a reward that is gifted to you. The airline company places trust that you will not misuse or abuse these. In case, you breach the trust, it is actionable under contracts and specific relief, for which you might face consequences like damages, a fine, or a bar by the airline.
Torts
Torts is the area of law that is all-encompassing. Any wrong that isn’t specifically dealt with in the letter of law, but results in wrongful injury to someone or wrongful profit accrued by someone at others’ consequence will be dealt with under Torts law.
What can happen to you if you are caught selling?
Your frequent flyer miles under the program are ultimately held by the airline itself. Airline companies these days run a credible monitoring system online and to an extent offline, to curb such unlawful transactions. In the event of you being caught by the airline, they can take action against you. Some of which might be:
Your ‘frequent flyer program’ account with the airline might be closed. The airline might press charges against you in civil court for a civil wrong or tort. You might be punished with a hefty fine and court damages.
In case the Airline is not able to prove the charge against you for selling your frequent flyer miles, the airline can still shut down your program without assigning any reason.
How you can use your frequent flyer miles instead?
If you must get rid of those unused accumulated frequent flyer miles, expiring soon then there are many other thoughtful and mindful options that you can choose from, some of which are listed down below:
By returning them to the airline which will redeem them and donate the equivalent amount or more to a charityYou can gift them to your friends or relatives. (without any monetary exchange)
Conclusion:
Frequent Flyer Miles Program is a successful program run by big airline companies to build their customer base and retain their loyal customers. While some look forward to and closely hold dear their accumulated miles, others are at a loss regarding what to do with them and their miles remain unused and profiting airline companies. There exists a third set of customers who see great monetary benefit out of those miles and exchange them in the black market for cash instead. This is most definitely an actionable wrong, meaning that the airline can sue you for the action. It is the inability of the law and legal system to be all-encompassing that such trade and practices arise. However, as responsible citizens, we must check ourselves and hold accountable the part that we play in society. It is expected of us when we receive a reward- such as the Frequent Flyer Miles- to be ‘deserving’ of that award.
