Abstract
The equivalence of airline mileage accrual and redemption has not been examined and so this study focused on the economic value of the system. The study compared the equivalence between the mileage earned upon boarding and the mileage used for issuing bonus tickets with the aim of finding ways to utilize FFP as a valid and valuable marketing technique. We studied K airline since it was the first civil airline in Korea and the first Asian airline to introduce FFP. In order to evaluate the equivalence at the time of accumulation, (1) comparisons were made between flights with the same grade but with different reservation grades, and (2) grades with different flights were compared. In order to check the equivalence of awarded tickets, we compared awarded tickets according to the destination and the period of use. Then, we compared member airlines of SKYTEAM and STAR ALLIANCE that fly to Korea and proposed an efficient plan for the airlines and members respectively. These two member airlines were selected because they are both leading airline alliance programs.
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