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When it was originally offered the airlines were regulated and they were high margin. At the time, in the 80s credit was almost nonexistent and they needed to
by wtvanhest 15y ago
When it was originally offered the airlines were regulated and they were high margin. At the time, in the 80s credit was almost nonexistent and they needed to raise money so they let their customers finance them. This is not so different then what startups do.
- corin_ 15y agoIt's very different - most startups (in the HN world anyway), by offering an unlimited anything, are only losing the ability to make money off that customer in the future. They aren't having to pay high taxes for the rest of that customer's life, nor is he taking up slots that prevents them charging someone else for the seat.
- wtvanhest 15y agoI was referring to the concept of financing your growth through first customers. There is always a cost. Sometime it is just opportunity costs.