Originally Posted by
Caspavio
i dont think it's because of the market. i think it's because they need to and they want to. airlines dont sell miles at a very high rate to their partners, maybe 1.x - 2.x cpm
I'm pretty sure they trade with each other at less than 1 cpm (kind of arbitrary, assuming it's a balanced two way street), and the floor established by AMEX/Chase/Citi is south of 0.5 cpm (there are many ways to spin this number, though, given the nature of the partnerships).