CEO Blog

Written by Ravindra Bhagwanani on . Posted in News

As Turkish Airlines with such offers, more and more airlines move to a more direct option to convert miles into cash. Air France KLM’s Flying Blue is the latest example by offering the possibility to holders of their co-branded American Express card to transform miles into a cash credit with a conversion rate of 1 mile to 0.4 EUR cents. While this might be in line with other programs offering such options, it remains a no go for members from a value perspective. British Airways’ Executive Club used to be one of the programs with the richest option at that level, at least for its UK-based members. By converting miles into points of the Nectar program, where points have a direct cash value, members could get 0.8 UK pence per mile – which came closer to a value some customers might have been willing to accept. That conversion rate will though change tomorrow, taking the cash value down to 0.67 UK pence per mile. This is still superior to what most other programs would offer, but risks pushing the deal on the other side of the acceptance line.