FlyerTalk Forums - View Single Post - How to share miles (no trading here)
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Old Sep 23, 2011, 4:14 pm
  #12  
lkar
 
Join Date: Nov 2007
Location: PHX
Posts: 4,787
Originally Posted by MrHalliday
As per above, this is not an offer or solicitation.

If one side provides 1000 miles and $40,
what have others done as a way to balance the swap ?
(money not being an option, of course).
You try to reach a meeting of the minds on the value of a mile. Once you do, it's easy. Just make it so that each person is paying $20. Hypothetically, suppose the two agree that a US mile is worth 1.5 cents. The person who gives up the miles pays $5 of the fee and the person getting the miles pays $35. That way, the person who initiated the share paid $5 plus 1,000 miles (worth $15) or $20 for the hit. The person getting the miles paid $35, but got miles worth $15, so also paid $20 for the hit.

If you value miles as worth 1 cent, it would be $10 and $30. If you value the miles as worth 1.25 cents it's $7.50 and $32.50, etc. (Note that the cost to share 1,000 miles actually is $40.75, but you get the point.)
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