How Airlines Quietly Became Banks

Kind of reminds me of S0&

Bank of America is connected with the Alaska Airlines card.... And theres not offices anywhere besides Anchorage so if you want to fix anything on your card but you live in Fairbanks or a village you basically have to fly to Anchorage to get it fixed...

Someone please correct me if I am wrong. But is this the perfect capitalist business model? Consumers get their flight points for purchases, “Hertz” (or whoever buys the points) gets a loyal renewable customer base, and the airlines make tons of money. From my perspective this is brilliant and the rare capitalist mechanism that serves the (for lack of better terms) “manufacturer”, “middleman”, and consumer. Usually corporate greed screws someone over but I can’t identify that in this equation.

This is so fucking depressing to me.

This video reminds me of that time a few years ago when I realized every console and gaming device manufacturer sells devices at a loss because things like Xbox live make them so much more money than charging you $50 to cover the cpu they gave you

I disagree. Look at airlines like Ryanair, Wizzair, EasyJet. Super huge Airlines and no banks at all.

This basically describes a hidden "cryptocurrency" that existed prior to Bitcoin. This why I had basically given up on the frequent flyer program outside of not paying for checked bags. I have over 100K in point but it means absolutely nothing.

So who loses out? The consumer? Or is it no one because the credit system is an illusion

is this only an us thing? i dontt know of frequent flying programs here in europe

Wait until you find out the USA is a corporation

Did you say 48$ for a 400mile flight😅 i havent seen a single flight in canada lower than 400$

Hmmm that bit about airlines not only having their own currency, but also controlling the market of goods which can be purchased with said currency... reminds me a bit of the banana republic when it paid employees in their own currency which could only be spent at their designated stores. It's obviously not nearly as horrible, as we here aren't limited to exclusively using this currency, we have the option to opt out, unlike the people of Cuba, Colombia, Costa Rica, Guatemala, Honduras, and Panama who were basically cornered into working for the United Fruit Company. But it's in a similar vein, in that they're controlling so much beyond just the currency itself.

Re: airlines are becoming essentially banks

That’s not surprising. It’s literally the goal of every company.

He has no choice due the fleet only consisting of Boeing planes

You really need to put your ad in the middle. When you put it at the end, people will just not watch it at all.

these people lol they smart

Dude, why don’t airline get into the gift card business? Maybe they are. It still. 🤔

Because when the governments started regulating them any possibility of profit was taken out of the equation, its why trillions world wide were pumped into all airlines 2000-2008 and they still ran like shit. Mind you their CEO's and upper management begged and said they would have to shut down and or lay off thousands which they did anyways and the CEO's and upper management all took home million dollar bonuses every year.

Airlineses, my Precious!

I think loyalty program is nothing but liability. It's technically future debt they owe . I'm not sure why I see this differently . It's not certain how much points are traded and it's net profit . There were no actual numbers

Points discussions between Detroit, Philadelphia, Qatar, Delhi and Sydney - covers the map but don't overload chicago nyc gatwick/gstwik or Beijing

<100 taxes, even though 396 SARs (special administrative regions)

If they say they gonna make money from it?
They need to pay taxes.
Simple.
No businesses want to say they are making profit.

I still fail to see why I should give a shit.

Very

🛫If you live in Texas you can fly for FREE! No tickets necessary! You just have to drive to the border.🛬 Flights are leaving daily to Chicago, New York and Los Angeles.

Does this guy sound a lot like half as interesting?

Accountants and lawyers produce nothing without actual companies that make things or provide services that customers pay for. Yet they are able to turn this around legally.

Its fraud

Shame on lawyers accountants and politicians who make the legal structure they can commit the fraud within

They do this to farmers too.

I would have a airline called SMD airlines. No seats standing only . We stack them deep and sell the flights cheap . I will have affordable food for purchase along with aqua frescas.

The internet has nearly 21M blocks of real estate developed over the past 15 years. This real estate is secured by more energy than any nation state military. This real estate can take one anywhere in the physical world almost instantly.

There will be far more travelers in our future, and the airlines should be excited about this.

You compare airlines to central banks but with airlines the price of their points is tied to something with intrinsic value, namely flight tickets, so you can always redeem your points for that. In economies with a fiat currency (ie all of them) there is, in theory, no such guarantee. This means that airlines are not merely banks, they have become a state within a state and one which functions better than the actual state

Next: Airlines start selling ink jet printer cartridges because that’s where the real money is. :D

Thanks for the video!

Well, McD’s is a real estate company, so… :P

So American Airline companies created the first crypto. Got it!

When COVID cancelled everything, airlines and other service provider industries should have switched to selling forever flights, just like forever stamps. The could have sold a coupon to fly at a future date with different prices for either a same date different year ticket, or a flexible ticket to a favorite airport, transferrable tickets that could be used by a family member should something happen to prevent the ticket holder from flying or just open tickets. They could have called this silver wings program to keep money coming in while flights were empty or grounded .

Because the Money Presses are too heavy. 😂

Because corporate executives "need" multi million dollar salaries?
Thought so

So why the heck do we keep having to use our tax dollars to bail them out????? This system is broken.

For a minute there it sounded like you knew what you were talking about so I watched the entire video before commenting. You left out a major Revenue stream. Airlines also act as shipping companies. They are chock full of cargo. They get a lot of revenue from cargo shipment. So I'm curious why you left out this Revenue stream in your analysis?.

Any business that has been around a while will get tweaked and tweaked so that they companies reap the benefits.. even when it's supposed to be a benefit for your loyalty.. we're so far down the road of greed it's truly great.

Classic accounting move. Spinoff customers as goodwill. Increases valuations!

21.9 billion dollars,im surprised warren buffet hasnt bought out airline companies for 500 million dollars using high risk junk bonds,and then cannibalise the airline by selling the loyalty programme and then closing down the rest of the worthless airline....

basically the entire economy shows that most business models aren't profitable unless they also are in the business of loans

It feels so good not feeding into these Schlomo Systems.

Sounds like a complicated 3 cup gambling on the street

Very interesting video.
It is not only that they became banks, they became a central bank, complete control over its currency.

there are too many airlines and tickets are too low, back in the 1950's you pretty much needed to be wealthy to buy a plane ticket. but now any low life can fly

Great video. Loyalty program and credit card rewards is the main topics of my business, and the info presented in this video is quite accurate.