To suggest taxing frequent-flier benefits while leaving such merchandise benefits untaxed is arbitrary.

These program do not preclude a company's employees from accruing regular frequent-flier benefits.

It also does not offer frequent-flier benefits and must persuade skeptical travel agents that it is a viable alternative to Northwest.

T.W.A. must cut its prices to woo passengers away from larger airlines that offer more extensive routes and better frequent-flier benefits.

First on the list is frequent-flier benefits aimed at business travelers - what Mr. Borenstein coolly terms "kickbacks to the purchasing agents."

There are no frequent-flier benefits and no free newspapers at the gate.

The individual banks set interest rates and frequent-flier and other benefits in order to compete for cardholders.

That plan, building on the carriers' existing One World frequent-flier alliance, would offer services like joint fare information, coordinated flight schedules and greater reciprocity in frequent-flier benefits.

Joseph M. Russo, the chief Hertz spokesman, offered no prospect for lower rates in the wake of the cuts in frequent-flier benefits.

When new employees join Boeing, Mr. Jorgensen said, many grumble about losing frequent-flier benefits.