The Impact of the Miles Trade Business in the Brazilian Airline Industry

This study analyzes the impact of the Miles Trade business in the Brazilian airline industry. This is linked some factors: economy recession, cultural traces, legal flaws and new technologies that led to the creation and growth of the Miles Trade business in Brazil. The impacts over airlines are related to loyalty weakening between customers and airlines and revenue dilution due to the lower prices of air tickets sold in miles. This project analyzes the qualitative impacts using the SWOT analysis, Porter’s 5 forces, Cause and Effect Diagram and the quantitative impacts comparing public available information about the Miles Trade business industry size to the public information of airlines revenue published by ABEAR. By acknowledging the significant impacts this study proposes recommendations and future research in order to mitigate, considering loyalty, legal and regulation, and technology perspectives in the analysis