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Old May 17, 11, 5:44 am
Dave Noble
FlyerTalk Evangelist
Join Date: Jan 2002
Posts: 39,007
Originally Posted by Princi View Post
The use of the term dilution of benefits comes from the term dilution of equity in a company.

If a company is comprised of 1,000,000 shares and you get promised 10% of the company - you get 100,000 shares.

Then the company enters into a second round of captial raising and lists another 1,000,000 shares.

You have lost nothing, you still have your 100,000 shares.

Do you still own 10% of the company - NO!

This is why anti-dilution clauses exist in contracts...

Not even close to a relevent analogy

Everyone has what they currently have; redemption rates have stayed unchanged and the earning for a platinum member will be unchanged allowing for redemptions at the same rates

A FF member is not a shareholder in the company and has never been given equity; the number of FF miles in circulation is not a static fixed value; QFF hasn't just gone and given gold and silver members a large stack of miles, just that in the future, the gold member will have a better earning than currently and earn enough to earn a discounted ticket sooner ( used to be free tickets before fuel fines )

Last edited by Dave Noble; May 17, 11 at 5:49 am
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