AT&T Corp., Basking Ridge, N.J., is grounding its frequent flyer miles program Dec. 31. An AT&T spokeswoman said customers were notified via direct mail about the cancellation. Users had earned 5 air miles for every $1 spent on long distance through the AT&T True Rewards program. AT&T's decision to drop air mile rewards is part of a strategy to focus more on rewarding customers with its own products and services, such as pre-paid cards and long distance minutes.
The AT&T spokeswoman said the company's research determined users are most interested in those types of rewards. AT&T had had relationships with United, USAir and British Airways. United's agreement expired earlier this year; however, USAir and British Airways miles can still be redeemed through the end of the year. The AT&T True Rewards redemption program will continue without air miles.
Copyright December 1997, Crain Communications Inc.