Chase Will Keep Issuing the Southwest Credit Card. As Deals Get More Expensive for Banks, What’s Next?

by Gary Leff

Jul 23 2015

The Southwest Airlines – Chase relationship was up for renewal. That’s a big deal for cardmembers, and also for folks with Chase Ultimate Rewards points because those points transfer to Southwest.

Back in April Southwest engaged an investment bank to evaluate options. I wrote at the time that I expected Chase to retain the card “because it’s more valuable to them than a new bank [because of their installed cardmember base], and because they have the resources.” And indeed Chase has secured a multi-year extension of the Southwest co-brand.

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How Delta Just Told Us Their Miles Are an Almost Worthless Currency

by Gary Leff

Jul 22 2015

I want to take issue with the claim by Delta’s Anthony Black that mileage prices are like airfares and so there shouldn’t be a posted award chart or advance notice of changes.

First of all, frequent flyer miles aren’t supposed to be mere rebates in the form of an airline’s currency, they’re supposed to be a reward for loyalty. That’s why mileage tickets used to be so much more flexible than paid tickets, they were a thank you for past business.

Perhaps more importantly though award prices aren’t like paid ticket prices, and certainly miles aren’t really like money.

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