Bill would offer way to cash in unused frequent-flier miles

By Brad Shannon | The Olympian • Published January 31, 2008

U.S. consumers are owed 14 trillion airline frequent-flier miles and need a way to cash in on the $480 billion worth that are owed by airlines, a state leader said Thursday.

Rep. Chris Hurst, D-Enumclaw, argued at a House committee hearing in favor of a bill that would let Washington consumers sell hundreds of thousands of unused frequent-flier miles for cash.

Trading or selling them could give consumers about 0.2 cents per accumulated mile at current valuations.

"Will the consumers receive what they paid for? Or was this just a slick game of three-card Monte?" Hurst said of the frequent-flier programs that sprang up in the 1980s but have mushroomed as credit-card companies and merchants have joined the parade of consumer rewards.

"This bill won't cost the taxpayers or anyone any money," added flier Brad Carey of Tahuya in Mason County.

Carey and other consumers said it has become harder to cash in miles, and being able to sell or transfer them could benefit consumers.

The measure faces an uncertain future.

Attorney General Rob McKenna's staff prefers to study the issue this summer before making a decision, spokeswoman Janelle Guthrie said.

A Washington, D.C., airline industry spokesman said House Bill 2707 could jeopardize frequent-flier programs and harm consumers.

A few frequent fliers testified along with the spokesman, James Stevens, director of state and local government affairs for the national Air Transport Association.

"I think the system has been working appropriately," said frequent flier George Tsoukalais of Edmonds, who questioned why loyalty program rules should be changed in mid-course.

Republican Rep. Cary Condotta of East Wenatchee opposed the bill, saying rewards programs, not airlines, are to blame for so many miles piling up.