Originally Posted by
brunos
One point to add is that one must also look at a FFP profitability as a separate entity.
FFPs are usually regarded as a profitable business.
For example, my *A status was on BMI until early 2010s when it got purchased by BA. BMI DC has a huge number of members who never flew BMI but enjoyed the cheaper awards than on other *A FFPs. And it was deemed very profitable.
ALso, FFPs make a lot of money with credit cards purchasing miles (the amount they receive is higher than the cost of awards using these miles).
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And don't forget this. If FB is just for squeezing out another 20-30 Mio from its customer base, that is probably nothing compared to the CC revenue and the possibility to raise equity. This Apollo deal was 1.5 Bio.
https://www.airfranceklm.com/en/news...n-quasi-equity