Posted by William Charles on August 28, 2018
Recaps

Published on August 28th, 2018 | by William Charles

13

Recap: Airlines Cash In On Credit Card Partnerships, Lounge For Billionaires, T-Mobile Data Breach & More

 

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Seeni
Seeni

$8.9 m or b?

Yoni
Yoni

Million and a pittance of a penalty when compared to so many civil penalties and fines levied or assessed by State and Federal courts for civil and criminal charges against citizens, not even a mere knuckle rap for most of the corporations, but sadly it seems that the Government just pads it coffers and customers end up pay for the penalties in the long run. While the people injured and damaged are rarely compensated much less made whole. /rant off.

frogger
frogger

WSJ article is behind a paywall. WOuld be nice to know what the article states.

Ann
Ann

archive.is is the easiest way to get around that. Here is their copy of this article:

Airlines Cash In on Loyalty Credit Cards – WSJ – http://archive.is/DKEI4

pjm
pjm

ugh, paywall for the article about airlines and credit cards.

Radster
Radster

Try googling the headline.

Rob
Rob

Best line: “It’s harder, when you have millions of people earning miles, to provide the fantasy seats that once existed,” Mr. Brierley said.

Tall T
Tall T

The comment section of the WSJ article was funny to read. So many misguided people.

James B.

Back around 2004-2005 Amex helped to pull Delta from bankruptcy by agreeing to making large Delta mile purchases.

Any idea how much the banks pay for airline miles? For example, how much does Chase pay United for each mile it purchases on an UR transfer?

Ann
Ann

According to https://thepointsguy.com/guide/best-cards-for-flying-united/ , “United miles are worth 1.5 cents each, while Chase Ultimate Rewards points are worth 2.1 cents.” So it probably costs Chase less for you to redeem them as United miles than it does if you redeem them as UR points.

James B.

I am sure the airlines and the banks keep this number confidential and it probably varies from bank to bank depending on the volume of miles they purchase per year from the airlines. My guess is the banks pay somewhere less than 1 cent per mile to the airlines like United and AA, and less than 1/2 cent to an airline like Delta.

JK
JK

Still don’t understand why airlines aren’t treating high credit card spenders as well as frequent flyers. Given that co-branded credit cards are hugely profitable, I would think the airlines would want to reward/incentivize that behavior by treating those customers well. Obviously the two categories (frequent flyers & high spending airline credit card holders) generally overlap, but why not do something like Ritz Carlton and offer a low status for holding a certain card, with the ability to earn a higher status through high spending?

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