Airlines are just banks now

[frorider]

. A 2020 analysis by the Financial Times found that Wall Street lenders valued the major airlines’ mileage programs more highly than the airlines themselves. United’s MileagePlus program, for example, was valued at $22 billion, while the company’s market cap at the time was only $10.6 billion.

https://www.theatlantic.com/ideas/ar...ograms/675374/

Just an inefficient kickback program where we get a small slice of the CC fees and the airlines get a free cash stream.

[Meadow Skipper]

Good article, thanks for the link. Interesting background.

The proponents of deregulation made a few big promises. The cost of flying would go down once airlines were free to compete on price. The industry would get less monopolistic as hundreds of new players entered the market, and it would be stable even without the government guaranteeing profitable rates. Small cities wouldn’t lose service. In the deregulators’ minds, airlines were like any other business. If they were allowed to compete freely, the magic of the market would make everything better. Whatever was good for the airlines’ bottom line would be good for consumers.

They were wrong. As I explain in my forthcoming book, most of their predictions didn’t come true, because air travel isn’t a normal business. There are barriers to entry, such as the fixed supply of airport runways and gates. (And, for that matter, mileage programs, designed to keep customers from ditching an established airline for a rival.) There are network effects and economies of scale. There are high capital costs. (Airplanes aren’t cheap.) The idea that anyone could successfully start an airline and outcompete the big incumbents never made much sense.

[fastfred]

suprise suprise

pretty much any monopoly large corporate conglomerate does everything they can to suck money from the customer and give the bare minimum back in goods and services its all about the shareholders and the top 1%

the fucked thing is no one is standing up and calling bullshit on the safeway/albertsons merger with kroger
think food is expense today???
when cargill and adm controll 95% of food production/distribution/wholesale and then kroger controls 75% of the retail how is that good for the average person?

[Toadman]

I don't think I would bank with the Bank of Delta Airlines. Not unless they gave me Platinum status for parking my cash with them and lots of upgrades to FC.

[JimmyCarter]

I don't think I would bank with the Bank of Delta Airlines. Not unless they gave me Platinum status for parking my cash with them and lots of upgrades to FC.

Bank of Jet Blue has lots of free calendars but charges you interest to hold your money.

Bank of Southwest is just some guy with a Venmo account.

Bank of Spirit Airlines would just be a wading pool filled up with loose change and some paper IOUs

[Joey Joe Joe Junior Shabadoo]

If you want more interesting background on the airlines you should listen to the Freakonomics 3-part podcast on airlines, lots of interesting history and insight on how to run an airline.

[climberevan]

suprise suprise

pretty much any monopoly large corporate conglomerate does everything they can to suck money from the customer and give the bare minimum back in goods and services its all about the shareholders and the top 1%

the fucked thing is no one is standing up and calling bullshit on the safeway/albertsons merger with kroger
think food is expense today???
when cargill and adm controll 95% of food production/distribution/wholesale and then kroger controls 75% of the retail how is that good for the average person?

Cheer for Lina Khan and the Biden Justice department, then. They are doing more to fight monopolistic practices than any government in memory. We need to support those actions and push them to go even farther. Monopolies are BAD.

[Toadman]

[Jax]

...the fucked thing is no one is standing up and calling bullshit on the safeway/albertsons merger with kroger
think food is expense today???
when cargill and adm controll 95% of food production/distribution/wholesale and then kroger controls 75% of the retail how is that good for the average person?

Could be it's own thread. I've already submitted at least three comments to CO's AG against this. Obviously all the mtn Safeways have just sold to smooth the deal. Already seeing City Market take more indy brands off the shelves and supplementing with their own crap brands. Gonna be like shopping at Wal Mart, where it 'looks' like they have 6 different brands of whatever food/housewares, but they actually own 4 of them and just license the name brand. https://coag.gov/grocerymerger/

On topic, Delta really pissed off a lot of ppl last week I hear with their new program with Amex.

[Toadman]

On topic, Delta really pissed off a lot of ppl last week I hear with their new program with Amex.

Yep, used to be able to get unlimited or buy your way in for a fee. Now depending on what level AmEx card you have, you are limited to the number of visits.

Here’s what’s changing on Jan. 1, 2024:

All cardholders flying in Basic Economy will no longer be eligible for Sky Club access.
Amex Delta Platinum and Amex Delta Platinum Business cardholders will no longer be able to purchase Sky Club visits.
For all versions of business and personal Amex Platinum and Delta Reserve cards, the biggest change won’t happen until Feb. 1, 2025. At that time, those accounts will be limited to:

Delta Reserve cards: 10 Sky Club visits per program year (Feb. 1 to Jan. 31), can pay for up to two guests or immediate family (spouse/partner and children under 21) at a rate of $50 a person for a Sky Club visit and $25 a person at Grab and Go locations (two free guest passes annually for the consumer Delta Reserve card).
Amex Platinum cards: Six Sky Club visits per program year (Feb. 1 to Jan. 31), can pay for up to two guests or immediate family (spouse/partner and children under 21) at a rate of $50 a person for a Sky Club visit and $25 a person at Grab and Go locations.

Skypesos worth less and less as the years go on.

Now elite status is earned by having an AmEx card and your dollar spend on the Delta portal. No longer accrue status via miles flown and spend, or number of flights flown. As an airline bank, that's how they roll these days. It's all about the cash now. (Not that it wasn't about the cash, just more obvious now.)

[Core Shot]

That blows. Been delta Amex for a long time. Not too happy about this. I’ll still fly on miles. It it was always nice to stop in the lounge for a clean shitter and some pocket meats and veg.

[fastfred]

Yep, used to be able to get unlimited or buy your way in for a fee. Now depending on what level AmEx card you have, you are limited to the number of visits.



Skypesos worth less and less as the years go on.

Now elite status is earned by having an AmEx card and your dollar spend on the Delta portal. No longer accrue status via miles flown and spend, or number of flights flown. As an airline bank, that's how they roll these days. It's all about the cash now. (Not that it wasn't about the cash, just more obvious now.)

my current lady friend travels the world for work
shes getting kinda pissed cause all the perks are stepping up their numbers right now so it's harder to qualify for her elite status that she carries around
she has the amex card and likes to go to the private clubs and get loaded and mow down the buffet, let me tell you how fun it is even uniteds club is not too bad
it is to have that status while the masses are crying and sweating bullets trying to figure something out after getting ass fucked by the airlines

"oh, miss hottie, here is your hotel voucher for the night and you will be on the first flight in the morning with first class service"

only two more trips to the middle east this fall and a vacation to south america shes counting her points hoping to keep it all with United
when she texts photos of her in her bed seat traveling across the atlantic it looks posh

but then the time covid hit and she was trying to get out of the UAE that was some scary shit she said

[dunfree]

https://www.theatlantic.com/ideas/ar...ograms/675374/

Just an inefficient kickback program where we get a small slice of the CC fees and the airlines get a free cash stream.

meh, mileage programs suck because they’ve become much more efficient. You can’t buy $5k of pudding and get lifetime status anymore

[Toadman]

meh, mileage programs suck because they’ve become much more efficient. You can’t buy $5k of pudding and get lifetime status anymore

You mean, something like this....

https://thehustle.co/aairpass-americ...fetime-ticket/

Three decades ago, 28 lucky bastards managed to snag the greatest travel deal in history, courtesy of American Airlines. It was dubbed the “unlimited AAirpass.

For a one-time fee of $250k ($560k in 2018 dollars), this pass gave a buyer unlimited first-class travel for life. A companion pass could be purchased for an additional $150k, allowing the pass holder to bring along anyone for the ride.

Mark Cuban, an early AAirpasser, tells us it was “one of the best purchases [he’s] ever made.”

[dunfree]

You mean, something like this....

https://thehustle.co/aairpass-americ...fetime-ticket/

https://www.wsj.com/articles/SB952554979432768145

$3k

[Meadow Skipper]

Delta CEO says SkyMiles changes ‘probably went too far,’ and that ‘modifications’ are coming

[phatty]

Delta CEO says SkyMiles changes ‘probably went too far,’ and that ‘modifications’ are coming

Thank goodness! They definitely went too far with this round. When a significant portion of your most loyal customers are pissed, you went too far.

[bigdude2468]

Cheer for Lina Khan and the Biden Justice department, then. They are doing more to fight monopolistic practices than any government in memory. We need to support those actions and push them to go even farther. Monopolies are BAD.

Might help if Lina Khan can win a case as opposed to losing and then getting bitch slapped by the Judge in the Microsoft / Activision case.

[Toadman]

https://www.wsj.com/articles/SB952554979432768145

$3k

LOL. I remember chatting with David on an online FF blog. He is an interesting character. One thing is for sure, the days of easy FF mile accumulation is over. I used to fly about 36 weeks out of the year. Majority was domestic. Had no issues getting top tier status on Alaska Airlines and usually Silver status on NW Airlines or Continental back in the day. Once you hit top tier, you could really rack up the miles on all sorts of promos and bonus miles. Hotels, Credit cards, rental cars, etc.

Then it seemed like everyone was top tier. They would announce boarding for elites and 75% of the passengers would que up. It seems like that's what the issue is these days. Way too many elites to provide that "elite" level of service that they couldn't even achieve pre-pandemic. Thankfully I don't fly that much anymore. I don't miss it. But the Misses travels quite a bit, so much so that I bought her lounge access as a birthday gift. Makes things less stressful when traveling. Plus I get to enjoy that benefit every now and again when I travel with her.

[old goat]

posts about delta's walk back in 3 different theads (at least) this morning. Now we know what our priorities are.