Monthly Archives

Monthly Archives for December 2017.

Delta Can Devalue Their Miles Because American Express Lost Costco

costco
Dec 03 2017

As costly as it was for American Express to lose Costco, it would have been more costly to retain Costco. As big a win as Costco is for Citibank and Visa, it’s a deal afflicted by the winner’s curse because Citi/Visa had to overpay to secure it.

But American Express lost 10% of its credit card portfolio overnight. And it signaled a huge change for the company’s business to Wall Street. It set in motion a huge set of changes at the company, at competitors, and in deals other banks made with other airlines.

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The Ultimate Million Mile Status Benefit

Dec 03 2017

Thirty years ago when OnePass was formed out of the Eastern Airlines Frequent Traveler Bonus Program and Continental’s TravelBank, they offered a huge reward for members who flew one million miles between the two airlines.

It was called the MillionAir and it offered a trip for two every week for a year anywhere the two airlines flew and it included 52 nights of hotel and 52 days of luxury rental car.

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The Folly of American’s New Coach Strategy: Undermines “$3 Billion” Investment

Dec 02 2017

American’s new 737 MAX 8 aircraft have a brand new interior that squeezes in more seats. They’ve gone from 150 seats on 737s 4 years ago to 160 seats on most 737s today and now to 172 seats.

American says they are spending “more than $3 billion in new customer products and services” making the mainstay product of their domestic fleet penny wise and pound foolish.

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