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Frequent Flyer Miles - Currency or Taxable Income?

American Airlines introduced frequent flyer miles in 1981 to stimulate customer loyalty. Over the next two decades, every major airline in the world followed suit. In so doing, this major innovation changed the way we plan our business and leisure travel forever.

Today, according to Randy Petersen, publisher of InsideFlyer magazine and webflyer.com, there are 47 different frequent flyer programs that doled out more than 14 million free tickets in 1998. Full Article