I would venture a guess that the publicity generated by something like this far outweighs the REAL cost to the company. For people who collect air miles (and especially on FT), the value of the miles is very important, but it never takes into account the wholesale price (which, from my research, is a closely guarded secret). I would assume, at some point, Avis must have to pay the airline where these points are redeemed (whether that's through a few different intermediaries or not), but you would assume that they are NOT paying the retail cost of the flights. This is why you can do things like trading loyalty points from flights for car rentals and vice versa. They are so heavily diluted by these programs, and people are (I assume) drawn in by the promise of points, it's all still a great deal for these companies, even if someone ocassionally figures out a way to beat the system. Much the way one lucky gambler doesn't exactly break the bank at a casino, but insteads give everyone else a bit of encouragement to try and beat the system themselves.