Tiger's Australian managing director Crawford Rix attacked frequent flyer programs as an expensive extra for which all passengers ultimately paid.

"Like smoking, if they hadn't come from a bygone age they wouldn't be allowed today," he said. "How can it be in any corporation's interest to have its travelling workforce increasing their travel overhead for an untaxed -- that is, in most countries -- personal benefit?

"To have allowed market-dominant carriers to operate frequent flyer programs and as a result create artificial barriers to entry is a wrong that should be corrected.

"The smart corporations will follow the lead taken by various Australian government departments and stop employees from being members and let the lowest price dictate."