LH: Lufthansa shows it cares... by devaulating your miles

Miles are a flexible currency, and like any currency, the value of them tends to go down as well as down.

And in the case of Lufthansa Group flyers you'll learn about miles depreciating, with Miles and More suffering a 20% devaluation from next year.

Affected Airlines: Adria, Air Dolomiti, Austrian, Croatia Airlines, Brussels Airlines, Lufthansa (and affiliated airlines), LOT, LuxAir and Swiss.

Here are the hard numbers: read them and weep. (With thanks to rcs85551 at http://www.flyertalk.com/forum/miles-more-lufthansa-austrian-swiss-other-partners/1154001-new-m-m-award-chart-01-01-2011-c-f-rumour-confirmed.html)

Europe – North America (Business Class / First Class):
Previously 90.000 / 140.000, Now 105.000 / 170.000

Europe – S America (Business Class / First Class):
Previously 120.000 / 180.000, Now 135.000 / 210.000

Europe – S. Africa (Business Class / First Class):
Previously 90.000 / 140.000, Now 105.000 / 170.000

Europe – SEA or Far East (Business Class / First Class):
Previously 120.000 / 180.000, Now 135.000 / 210.000

3-Region-Award (Business Class / First Class):
Previously 160.000 / 240.000, Now 185.000 / 290.000

Round-The-World-Award (Business Class / First Class):
Previously 280.000 / 400.000, Now 325.000 / 480.000

Other Changes inculde:

• two stopovers allowed per award
• one way awards are now 50% and no longer 75%
• same day award 'penalty' of 10k has been removed

There's also a full breakdown of the image (again from the Flyertalk thread and http://www.vielfliegertreff.de/blogs/rcs/21-aenderungen-bei-miles-more-bessere-bedingungen-teurere-praemienfluege-insbesondere-first.html)

My advice: Whilst I'm not an avid collector of Lufthansa Miles, this is one hell of a devaluation, and should serve as a warning to BMI Diamond Club members who will eventually merge into Miles and More.

The simple advice I'm going to give is this:

• If you want to redeem at the old rates, spend now.
• Diamond Club members, unless you want a really bad devaluation, spend now.
• Those who are considering status for 2011-2012, unless you can take advantage of a 30 Sector to Silver on the cheap or are flying business anyway, I'd seriously reconsider your strategy.

And it serves as a reminder - the value of miles goes down, as well as down.