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Old Jul 12, 17, 5:29 pm
  #104  
rucksack
 
Join Date: Dec 2014
Programs: DL PM
Posts: 1,073
Originally Posted by minnyfly View Post
That ~2cpm is a not a favorable redemption rate. You can buy miles on sale for basically the same price. They will sell you that ticket all day long.
Think about the absurdity of what you just suggested: that miles be worth more than what you can buy them for. How do you think that would work out for Delta? If I could buy miles for $0.02 each and could redeem them for $0.03 each, I could profit $0.01 per mile bought!

Originally Posted by minnyfly View Post
The fact that DL and other carriers can universally devalue their miles for an economic gain proves then existence of a monopoly market.
They can't though - airlines don't have unlimited power to devalue their miles. The devaluation of miles across the industry over the past decade reflects the overall trend of consolidation in the industry that has given airlines more power over consumers.

Airlines would have to collude to completely devalue miles (which I'll remind you is illegal). In the absence of collusion, airlines would never act to devalue their miles too much due to market pressure. It would disadvantage them vs. their competitors when it came to selling fares and getting people to sign-up for co-branded credit cards. Looking at award pricing in isolation doesn't tell the whole story.
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