Originally Posted by
FriendlyPilot
Those purchased miles have a cost. They aren't "free revenue". The idea that somehow every airline that makes a profit because they are "well run" but United and Delta are huge money losers but only really make money from credit card deal is absurd. Its like I kept hearing "our airbus orders are worth billions because you can't just order an Airbus" but now United somehow has 270 Airbus 321s between delivered and on order and I'm trying to figure out which other airlines we bought their orders from and why those billions for selling their orders didn't show up in the earnings?
They can manipulate the cost as they wish, that's the point. I never claimed your other comments so can't comment on those.
To take the argument to absurdity, United can decide tomorrow that IAH-ORD redemption in coach costs 1 million miles. And they only have 1 seat available per year. What's the cost of having those billions of miles outstanding now? Very little. And that's why airlines love selling them to banks. Banks pay certain $ per mile, but the value of the mile is 100% controlled by the airline.