El Al to spin off Matmid Clud
Jun 17, 2014, 5:19 am
#1
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El Al to spin off Matmid Clud
In an article about issuing new branded credit cards in Israel, it is mentioned that LY is working on creating a separate legal entity for its loyalty club. Link in Hebrew:
http://www.passportnews.co.il/Article.aspx?ID=8900
http://www.passportnews.co.il/Article.aspx?ID=8900
Last edited by eyal; Jun 17, 2014 at 5:27 am
Jun 17, 2014, 6:44 pm
#3
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EL AL signed deal to launch brand credit card
In a related development, a few days ago EL AL signed a deal launching credit cards for frequent travelers. The article can be found by clicking this link: http://jpupdates.com/2014/06/15/jp-t...equent-flyers/
As far as spinning off Matmid goes, lately EL AL seems to be adopting failed ideas of other airlines with the expectation that it will somehow work for them. I suppose soon enough they will know how successful creating an LLC with legacy costs and spinning off their frequent flier program will be.
As far as spinning off Matmid goes, lately EL AL seems to be adopting failed ideas of other airlines with the expectation that it will somehow work for them. I suppose soon enough they will know how successful creating an LLC with legacy costs and spinning off their frequent flier program will be.
Jun 17, 2014, 7:18 pm
#4
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Well, its probably means that Matmid will make some money from an agreement with the credit card providers/banks- at the same time- continue to devalue whats left of the program by increasing redemption amounts to gigantic proportions.
Jun 23, 2014, 10:46 pm
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They are trying this based on QANTAS plans i imagine. Recently they grilled someone from QANTAS about how they run their program.
Jun 24, 2014, 12:02 am
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Jun 24, 2014, 12:20 am
#7
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Jun 24, 2014, 12:24 am
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Jun 24, 2014, 1:31 am
#9
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Here's a good recent article about their financial situation: http://www.abc.net.au/news/2014-02-2...s-loss/5287188
Interesting how EL AL goes from recycling a proven failed idea from a decade ago (that a legacy carrier can operate profitably an LLC sub brand that retains legacy costs) to trying to imitate ideas from a currently ailing airline.
Jun 24, 2014, 8:49 am
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Their FFP is very successful with good partnerships.
I can't speak to QF. but AC/Aeroplan has not been an overall positive for consumers (or frankly, AC itself). It is certainly a good way to earn money, but you don't need to separate the mileage program from the airline to do it. El Al needs to get its basics right before screwing around with financial engineering...
Jun 24, 2014, 9:15 am
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who is they?
I can't speak to QF. but AC/Aeroplan has not been an overall positive for consumers (or frankly, AC itself). It is certainly a good way to earn money, but you don't need to separate the mileage program from the airline to do it. El Al needs to get its basics right before screwing around with financial engineering...
I can't speak to QF. but AC/Aeroplan has not been an overall positive for consumers (or frankly, AC itself). It is certainly a good way to earn money, but you don't need to separate the mileage program from the airline to do it. El Al needs to get its basics right before screwing around with financial engineering...
LY is like a nice high school kid with ADD. They mean well, and jump around when they hear others do nice things, but they don't bother to understand how to do it properly, and quickly forget as they move on to the next project, leaving lots of unfinished business everywhere. And somehow, the pax always suffer
Jun 24, 2014, 11:03 am
#13
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Of course QF. I was responding to the preceding post.
http://www.smh.com.au/executive-styl...210-2z4f9.html
Matmid has little to no value, however.
http://www.smh.com.au/executive-styl...210-2z4f9.html
Matmid has little to no value, however.
Jun 24, 2014, 1:08 pm
#14
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That is true, however I was replying to the general comment made by another poster that QANTAS is a successful airline, which it is not.
According to the below linked article, the only real asset QANTAS has is their FF program which they are deciding whether to spin off in order to inject much needed capital into the company. http://www.couriermail.com.au/busine...-1226802634266
I doubt Matmid is worth much, or anything at all. Certainly selling the program will not inject anywhere near the sort of cash EL AL needs while QANTAS selling off their FF program will inject a lot into that company. Consequently, one must ask whether there is a point at all for EL AL to sell off Matmid if the program itself is worthless?
According to the below linked article, the only real asset QANTAS has is their FF program which they are deciding whether to spin off in order to inject much needed capital into the company. http://www.couriermail.com.au/busine...-1226802634266
I doubt Matmid is worth much, or anything at all. Certainly selling the program will not inject anywhere near the sort of cash EL AL needs while QANTAS selling off their FF program will inject a lot into that company. Consequently, one must ask whether there is a point at all for EL AL to sell off Matmid if the program itself is worthless?
Jun 24, 2014, 6:17 pm
#15
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Yes, I was ignoring that part as the thread is about the FFP. Agreed, pointless to spin out Matmid.