How do American Express and other credit card companies pay for all those miles that get redeemed? Charging merchants transaction fees usually does the trick.
United CEO Oscar Munoz Munoz is saying all the right things and needs to reassure MileagePlus members before more of them bolt to other airlines. But after years of poor performance, members of United's loyalty program and other customers will want to see concrete results, not just the verbiage.
American's investment suggests that airlines' record financial health could actually lead to improvements in customer experience.
The idea of an frequent flyer community coming together to share travel tips and engage in good-natured competition is a lofty concept; however, we wouldn't bet on these busy executives investing substantial time and energy toward connecting or creating on the Air Canada platform.
American Airlines is certainly setting itself apart with its uber-exclusive transcontinental service. Will it be profitable and sustainable? Pass the shrimp scampi; we'll wait and find out.
Cathay Pacific has to figure out whether the bid-for-an-upgrade scheme would deter other passengers for paying the full fare for those seats. It would be an experiment worth trying.
Frequent flyers and bloggers are bemoaning the sudden change, but adjustments should be expected as the two airlines continue to adjust and align their policies.
The levels of these emotions will change depending on the flyer and frequent business flyers, in particular, are immune to certain aspects of flight that become more tiring than invigorating over time.
Mileage programs are emerging as a top money maker for airlines worldwide and becoming assets in the carriers' restructuring towards greater profits and streamlined operations.
It appears that Rabbi Binyomin Ginsberg gamed the system, namely Northwest's loyalty program at the time. But it appears that the Supreme Court is leaning away from deciding the case. Did Northwest have the right to boot him from the program? We may not get that answer from the high court.