Originally Posted by
Halo117
I wonder if this is something "other airlines will fear". The buy rate will only shrink with this increase. So i am in coach it will cost me around $18 for a one way flght with meal and DTV(not including the drinks you get in FC). Those TODs upgrades look even more enticing.
The buy rate will go down, but profit could still go up.
Dont they pay $2 to Direct TV for each order? So currently profit is $2 (Chase) to $4 (actually less because they pay for CC processing). With the increase that goes to $4-$6 (a 50%-100% increase). If sales only go down by say 25% they are in MUCH better shape (Direct TV of course makes less money).