FlyerTalk Forums - View Single Post - Star Alliance news not coming until '06; HP hopeful no more partners will be axed
Old Sep 7, 2005, 11:43 am
  #6  
TransWorldOne
Original Member
 
Join Date: May 1998
Location: Las Vegas, NV, USA
Programs: AAdvantage EXP/1mm/Admirals,United Silver+Club (life),Marriott Titanium,Hilton & Accor Gold
Posts: 5,061
Originally Posted by mallthus
...No airline likes their frequent flier program from a bottom line standpoint, but they know it's marketing and customer retention value for sure...
I disagree. Many airlines "like their frequent flyer programs from a bottom line standpoint." The airlines derive a huge amount of revenue from selling miles to their partners-- credit card companies, hotels, car rental agencies, etc. This revenue stream comes to the airline with very few expenses. Frequent flyer programs are one of the few profitable segments of the commercial US airline business at the moment.
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