Employers not staff own frequent flyer points

[Travel Pages]

http://www.e-tid.com/pm.aspx?article_id=25012&showLive=1&useCache=1

Employers not staff own frequent flyer points
12 Apr 2006

The FT reports a court in Germany has ruled employees may use air miles earned while travelling on business for personal trips only if their employer agrees.

The German Federal Labour Court in Erfurt found against a sales manager who wanted, against his employer’s wishes, to redeem €9,700-worth (£6,708) of Lufthansa frequent flyer points on personal travel. The judge ruled air miles earned on business trips belonged to the company that paid for the trip and could be used privately only with its permission.

Employment law specialist Hanno Timmer of Berlin firm Hogan & Hartson told the FT the case could change the way companies treated air miles, with many recognising ‘the potential to lower costs’ by forcing staff to use them for business travel.

According to Lufthansa, its passengers currently hold Miles & More frequent flyer points, worth nearly €600m (£415m).



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[Michael C. Berch]

Although this only affects Germany directly, I think this could be
very bad for FF programs, especially if employers attempt to
establish that right in other large countries. If FF miles can't be
used for personal travel, the brand loyalty factor will be greatly
reduced on the part of business travelers, therefore FF programs
would be less effective as marketing tools, and that could possibly
spell the end of the programs. I know from some friends and
colleagues who are airline management people that the airlines, at
least the legacy carriers with huge "overhangs" of liability for
earned miles, would *love* to get rid of the FF programs, but
everyone is afraid to be the first, and antitrust laws prevent them
from acting in concert.

Could this be the "tap of the hammer" that causes the FF world to
slowly begin to crumble? (Some people predicted that would happen
after the industry's darkest days after 9/11/01, but it didn't.)
--
Michael C. Berch

Post by Travel Pages
http://www.e-tid.com/pm.aspx?article_id=25012&showLive=1&useCache=1
Employers not staff own frequent flyer points
12 Apr 2006
The FT reports a court in Germany has ruled employees may use air
miles earned while travelling on business for personal trips only
if their employer agrees.
The German Federal Labour Court in Erfurt found against a sales
manager who wanted, against his employer’s wishes, to redeem €9,700-
worth (£6,708) of Lufthansa frequent flyer points on personal
travel. The judge ruled air miles earned on business trips belonged
to the company that paid for the trip and could be used privately
only with its permission.