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No airline operates a credit card company. They just put their name on a card and sell miles at a discount in bulk to credit card companies like Chase or Citi.
by sgerenser 5mo ago
No airline operates a credit card company. They just put their name on a card and sell miles at a discount in bulk to credit card companies like Chase or Citi.
- themafia 5mo agoOf course they do. Why do you think they get money in return? You don't think that's linked to performance? They just put their name on a card, get a fixed amount of monthly money, and that's enough to let them lead at a loss on airline tickets? Hacker News has become simple minded. It's embarassing.
- sgerenser 5mo agoMissed this so coming in very late, but wow this is unbelievably off the mark. The airlines do not operate a credit card company, full stop. They sell airline miles, at a fixed rate per mile, to the credit card companies. That’s it. Citi, Chase, CapitalOne, etc. are the ones that operate the credit cards.