Reasons 4 Airline bailouts

[flyin4pennies]

I recently had a chat with a UAL pilot who added his 2 bits to the ongoing decline.
He explained that bankrupt Airlines are being bailed out by credit card companies because they are bring in the customers with their airline reward programs. The $1.2B given to DAL/UAL/NWA is nothing to the banks compared to the several $B. they make off of their card holders in interest payments.
Sounds logical but is this really what we want for ourselves?
Most of us got into this for the love of aviation.
Do we want to be a cash cow for banks?
This could only turn out bad!

ANY TAKERS?

 

[CUZ]

Hey pennies.. That United guy was spot on....As much as I hate to say it, these credit card companies have huge stakes in the airline business. They can keep an airline afloat, and still keep making that cash on the 16-29 percent interest rates which most airline cards carry. America is in credit trouble, and these companies have huge political influence. What other business in this country can charge you 30 percent interest? I wish we could charge a 30 percent fuel charge in the airline business. We would all be better off for it.

 

[flyin4pennies]

Kinda reminds me of that scene form Goodfellas where Pauly bails out the club owner, robs him blind, and then sets the place on fire.

 

[CUZ]

Great flick, and an even better analogy. If your really bored, search all of the institutional ownership of the majors. Kind of makes you sick.

 

[HalinTexas]

CC companies can help in the demise of a company as well via holdbacks. When you're not doing so well, the CC Cos. won't release the funds used to by the ticket until the day of the flight. Meanwhile the airline can't accept any more reservations, confirmed or not, until the flight leaves, or the customer cancels their "order" for a ticket. Airlines can only overbook so much.

 

[YourPilotFriend]

Not only that, but the surplus of bonus miles far exceeds the avialable capacity. They have sold seats that don't exist.