The winner at Priceline seems to be Delta Airlines. The deal they put together for themselves is brilliant:
- They get priority carrier treatment
- Get to dump potentially stale inventory at last minute
- Minimal marketing costs (no commissions, advertising costs, etc.)
- Ability to generate additional revenue on tickets if Priceline manages to get margins above 14%
- Enhances Delta's balance sheet with Priceline's (albeit overpriced) stock
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I'm not a big fan of Delta as an airline, but I've gotta give them credit as dealmakers!