In what could be a stocking stuffer for airline loyalty members and a lump of coal for the airlines, the U.S. Department of Transportation is looking into possible unfair practices in airline mileage-earning and award programs.
Among the topics being explored are transparency around booking award tickets, devaluation of the value of accumulated points, how transferability works in different programs, and how much notice members should get when the airlines make changes in the programs.
The study, which is just in its early stages, has begun with meetings between airline representatives and DOT officials; a DOT spokesperson told Reuters that the department is “actively meeting with U.S. airlines and gathering more information on this issue.”
The issue is separate from another issue that may affect loyalty programs, with a Senate bill that would change accounting and tax rules for credit card issuers in a way that would de-incentivize them from issuing airline miles as a practice. The bill is sponsored by Sens. Durbin and Marshall, who have also been pushing DOT to investigate the programs.
