HN Theater @HNTheaterMonth

If one enjoys Wendover videos, there was a recent one about that: https://www.youtube.com/watch?v=ggUduBmvQ_4

Wendover Productions has a video on how airlines are banks now. Their Loyalty Programs are worth several times more than the Airlines and flying is basically a secondary business for them.

How Airlines Quietly Became Banks

https://www.youtube.com/watch?v=ggUduBmvQ_4

⬐ brk

This is particularly obvious on American Airlines. EVERY flight I took last year had the FA's telling how this one special flight qualified for a very rare offer... to open a credit card and get some base miles for free. I feel bad for them having to hawk this stupid credit card constantly, though I bet they get some kind of extra bonus for suckering people into signing up.

⬐ bombcar

The credit card bonus to the customer can be upwards of $400 or more - so it’s clearly worth it to the credit card company and they make it worth the airline’s while also.

⬐ imroot

The FA’s do get around $100 as a bonus when they sign up on a flight.

⬐ rplnt

edit at the bottom, my question has a simple answer: no

That seems like an interesting topic. Wasn't Wendower Productions just reading Wikipedia articles over stock footage and blueprint graphs? Or am I mistaking that with some other channel(s)?

edit: Well that was easy to search for, it was Real Engineering channel.

⬐ kataklasm

Seems like you have an axe to grind here, care to elaborate a bit?

⬐ gabagool

Clearly my Google Fu isn't as strong as yours. Could you share a link about Real Engineering?

⬐ selimthegrim

How soon until this happens with Starbucks and gift cards?

⬐ PascLeRasc

Here you go: https://www.youtube.com/watch?v=mr039xnco-8

⬐ nexuist

Airlines have historically been cash poor. It's extremely difficult to make an airline profitable, and demand fluctuates wildly due to weather, oil prices, world conflicts, etc.

"If you want to be a millionaire, start with a billion dollars and launch a new airline." - Richard Branson

It obviously causes them harm. The points are often redeemed at a discount to their regular tickets... which are often loss leaders for their points business.

Most airlines lose money on every ticket, and make it up in their rewards programs. Only to lose money again on redemption. They really only make money on some of the inefficiencies..

Easy to follow source: https://www.youtube.com/watch?v=ggUduBmvQ_4

⬐ mbesto

Right, I know this to be true. But it's one thing for someone to infer that it causes harm, but it's another thing if they legally say this is the case.

One thing that has changed in the airline industry that wasn't the case when the points guy started, is that the Airline Frequent flier miles are worth more than the actual airline themselves making the airlines essentially banks.

https://www.youtube.com/watch?v=ggUduBmvQ_4

There are casinos in every major place I've lived. (La, Austin, Chicago) which are negative sum games (not zero like crypto)

Mileage: https://youtu.be/ggUduBmvQ_4

There are, absolutely, crypto Ponzi schemes. (And stablecoins are largely such things) However there are also valid uses of crypto/Defi. I've used them myself to send funds easily. They are enabling truly symmetrically fair exchanges etc.

If you don't like crypto, don't buy it, don't mine it. Following eth 2.0 the energy usage will be minimal and it won't be harming you. Preserving positive freedoms generally and avoiding negative freedoms (constraints on others) is a good thing imo.

⬐ lifeisstillgood

I am always fascinated by non-obvious business models - if anyone can explain film production and profits please shout :-)