The FAA Is Not to Blame for Letting Boeing Self-Certify the 737 MAX

airplane flying
Nov 02 2019

Self-certification dates to 1956. It is not part of a deregulatory push. It’s a system that has worked remarkably well. The FAA has approximately 400 engineers to work on aircraft certification. Boeing has 45,000 engineers. The FAA cannot possibly do all of the work themselves and we wouldn’t want to shift the best engineering minds away from creating product to oversight.

Delegation isn’t a strictly-U.S. practice, or one which was limited to the MAX.

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Why Spinning Off Frequent Flyer Programs is a Bad Idea

cash
Nov 02 2019

On Wednesday morning I debated Stifel Managing Director Joseph DeNardi on whether or not to spin off frequent flyer programs at the Airline Information MEGA event in Florida.

Joe is the best-known face of the argument that loyalty programs are the primary drivers of revenue and value for airlines, and he’s argued that the overall businesses are undervalued because investors don’t clearly see how much good, high margin revenue is coming in from credit card partnerships versus from the airline as old-line industrial. He was charged with defending the idea of spinning programs off into a separate business, and I was charged with arguing against this.

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Capital One Launches 20% Transfer Bonus to Air France KLM,

air france plane
Nov 01 2019

Already on their sixth transfer bonus of the year, having just launched transferable points, and Capital One has shared in the past that “limited-time offers like this will be another major perk for Venture and Spark Miles account holders to take advantage of.”

This month they’re back with a bonus on transfers to Air France KLM Flying Blue, a great program to pool points in, with reasonable redemption rates and good business class availability.

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