Monthly Archives

Monthly Archives for October 2017.

Kiwis are Birds That Can’t Fly, But This One Discovers It Can Fly… Air New Zealand

Oct 17 2017

New Zealand’s national bird is the kiwi, and it’s Air New Zealand’s symbol as well. After all, New Zealanders are often referred to as Kiwis.

The irony for the airline of course is that kiwis can’t fly. But Air New Zealand has turned that on its head, creating a video showing that in order to fly a kiwi can fly on Air New Zealand.

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United Could Have Problems Squeezing More Money Out of a New Deal With Chase

Oct 16 2017

United and Chase renewed their credit card agreement two years ago and there’s already talk of the next extension, which suggests that they made a 5 year deal which historically was standard although we’re seeing more 7 and even 10 year deals in the co-brand space.

The financial analyst most bullish on credit card revenue for airlines now believes that United’s bargaining position may have slipped as a result of Chase’s success with its own products and American Express’ investments in its Platinum card in the broader competitive space.

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Delta: Subsidies for Me But Not For Thee

delta plane
Oct 16 2017

The Partnership for Fair and Open Skies is putting out a statement against Emirates, Etihad, and Qatar in response to Emirates pointing out just how many Boeing aircraft they buy — a direct contrast with Delta.

However Delta at the very same time is directly at odds with Boeing over subsidies, with Boeing arguing that Canada shouldn’t be able to subsidize aircraft manufacturer Bombardier, and Delta arguing that they should be able to benefit from these subsidies.

These two things are not at all inconsistent.

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Supreme Court Will Decide if Credit Card Rewards Matter For American Express Anti-Trust Case

Oct 16 2017

In the biggest case for loyalty programs since Northwest v. Ginsberg, the Supreme Court has agreed to hear Ohio v. American Express, reviving an anti-trust case brought by retailers and 11 states which argued that American Express violates anti-trust rules in its merchant agreements.

At issue is whether benefits to consumers — like rewards and credit card protections — count when determining whether the market is competitive (do we look at both sides of a two-sided market, or only the merchant-network relationship)?

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