The very success of FFPs could lead to their demise, at least in their present form, say trade pundits. FFPs are under threat from all sides. Pressure is mounting from governments, which view FFPs as inimical to fair competition, especially in view of the concentration of major airlines into important alliances, such as Star Alliance, Skyteam and Oneworld. If adopted around the world, this could seriously undermine the attractions of FFPs. Leading corporations are saying that the frequent-flier awards should belong to the company and not the individual.
Most airlines still refuse to give FFPs to corporations.
But, Virgin Atlantic, Asiana, Turkish Airlines and China Airlines have broken ranks and started giving FFPs to select corporations, besides continuing to give mileage to individuals as well. Companies make out that FFPs inflate fares and encourage employees to take unnecessary or circuitous trips to amass lucrative bonus points. No-frills airlines are campaigning against FFPs as being inherently corrupt and distorting the market. To them, FFPs are a bribery system where, like any bribery system, you have to convince people to do things they wouldn't otherwise have done. Airfares, they claim, could be reduced by at least 10 per cent, if FFPs did not exist.