Key point: airlines are more powerful than normal banks - they are central banks, with complete control of the money (point) supply. On the trilemma [0], they chose to control the exchange rate (points to flight value) and have an independent monetary policy (how many points to issue to flyers or other buyers).
When fliers realize points-miles are a fool’s errand, they will simply ignore them and go back to only considering price, flight time, number of stops, and customer service.
Points-miles are a way for airlines to lock and keep their customer base while treating their customers like cattle.
Key point: airlines are more powerful than normal banks - they are central banks, with complete control of the money (point) supply. On the trilemma [0], they chose to control the exchange rate (points to flight value) and have an independent monetary policy (how many points to issue to flyers or other buyers).
[0] https://en.wikipedia.org/wiki/Impossible_trinity