Cagey Consumer

MCI Offers Chump Change for Frequent Flyer Miles

On September 2, 1998, MCI announced it was celebrating the 10th anniversary of the MCI/American Airlines partnership that provides American Airlines frequent flyer miles to MCI customers by becoming the "first airline loyalty program to offer long-distance for miles."

The following chart shows the amount of long distance credit being offered as well as the estimated value of the long distance miles, based on a value of 1.4¢ per frequent flyer mile.

number
of miles
estimated value
of miles
amount of
MCI credit
credit
per mile
7,000 $98 $25 0.357¢
12,000 $168 $50 0.417¢
MCI will have cause to celebrate every time a customer takes advantage of their offer... that customer will be making a non-deductible contribution to MCI's bottom line... and will be getting "chump change", less than one-third of the estimated value, in return.
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Updated September 11, 1998