CEO Blog

15 July 2021

Written by Ravindra Bhagwanani on . Posted in News

The good thing about Covid was that most airlines were preoccupied by other things than looking at hidden ways to devalue their programs, for instance by moving to a revenue basis. However, after a short break, Oman Air will become the next carrier to switch to such a scheme for its Sindbad program in August. Full details are not yet known, but the base earn rate will be only 4 miles per USD spent. This means that while you’d earn today 19,344 miles for a roundtrip at the “Business” fare category for a roundtrip between London and Bangkok, the applied price would result in a mileage earning of only 17,184 miles – or 11% less – under the future revenue-based model. Flying in Economy Class between Muscat and Mumbai at an Economy Lite fare earns today 494 miles. However, this amount would almost triple to 1,312 miles. It might be nice if such system benefits certain customer groups – but the question should be allowed what the exact reasoning is if high-yield business customers are punished while unprofitable low yield customers benefit…