Airlines in dispute with miles companies – 07/21/2023 – Panel SA

Judicial decisions, mainly in São Paulo, favor airlines, which try to prevent loyalty programs from being replaced by a market today consolidated by companies such as MaxMilhas and 123 Milhas.

With an eye on the volume moved by these companies, Latam, Gol, Azul and even the American United Airlines began to impose restrictions and even veto the use of miles by their customers, when commercial purpose is verified. As a result, they were sued.

Of the 16 cases of this type judged by the Court of Justice of São Paulo this year, 15 had favorable decisions for airlines, validating the rules of their loyalty programs. In only one, the outcome was contrary to them.

Passengers appealed in three of them and, in all cases, the judges agreed with the companies.

Despite this picture, currently, on their websites, MaxMilhas, HotMilhas and 123 Milhas, the largest in the business, claim that it is the consumer’s right to autonomy in the use of their miles. For that thesis, he could sell or transfer them.

HotMilhas, which belongs to the owner of 123 Milhas, informs that “the owner of the miles belongs to them and the legislation does not prevent their commercialization”.

“There are no laws in the country that prohibit the commercialization of air miles and, therefore, it is an absolutely legal service”, says 123 Milhas.

In a case in which the passenger sued Gol, the judge considered that the loyalty program is very personal, which authorizes airlines to limit transfers of points to third parties to avoid fraud and abuse, such as the sale of points.

In a lawsuit against Azul, the judge stated that it is unreasonable to admit the issuance of tickets to dozens of different people for marketing purposes.

Via advisory, MaxMilhas confirmed that these court decisions hinder the airline miles intermediation business. The company said that loyalty program interests inhibit consumers from using their own miles and limit the use of their own goods.

“Airline loyalty programs market and attribute value to miles by selling subscription packages, batches of miles and by marketing them to banks and retail companies,” said MaxMilhas. “Therefore, the miles end up being costly goods, that is, the consumer pays for them directly or indirectly and, therefore, should have the right to use them as he prefers.”

Sought, 123 Milhas and HotMilhas have not responded so far.

With Diego Felix

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