You will be required to research academic and industry references to answer these discussion questions. You need to cite your sources.
- Select two airlines then compare and contrast their frequent-flier programs (FFPs). Discuss any restrictions imposed on redemption rates of frequent-flier miles. Discuss the liability balances for the FFPs and how they have changed in the last ten years.
- How do airlines benefit from frequent-flier programs and co-branded credit card agreements? What are some of the advantages and disadvantages of such programs?
- What are the major differences between the incremental cost method and the deferred revenue method of accounting treatment for airline frequent-flier mileage?
- List at least three ways in which airline accounting is different from standard accounting.