They make more money from mileage programs than from flying planes—and it shows.
Ganesh Sitaramantheatlantic.com
Saved by Emily Van Tassel and
They make more money from mileage programs than from flying planes—and it shows.
Basically, airlines look like they make money from flights, but they actually make money from loyalty programs. Without its loyalty program, Delta would be worth -$7 billion. With it, it’s a $19 billion company.
Byrne Hobart • Why the Survival of the Airlines Depends on Frequent Flyer Programs
Increasing passenger traffic, Brown reasoned, was the one sure way to wean the airlines from postal subsidies. But public confidence could be inspired only by big, financially secure carriers committed to safety, maintenance, and training, not by the fly-by-night operators abounding at the time. Brown changed the rules so that the airlines received
... See moreThomas Petzinger Jr. • Hard Landing: The Epic Contest for Power and Profits That Plunged the Airlines into Chaos
That was it. American could have its customers accumulate mileage instead of Green Stamps, earning free travel instead of household appliances. The concept was not unheard-of among the airlines. Southwest Airlines already had a program in which secretaries got free travel after booking so many trips for their bosses.
Thomas Petzinger Jr. • Hard Landing: The Epic Contest for Power and Profits That Plunged the Airlines into Chaos
