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Old 11th Oct 2023, 17:57
  #547 (permalink)  
Aussie Fo
 
Join Date: Oct 2003
Location: Sydney
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Cool

I’ve tried to understand this for a while.

Qantas sells 80$ worth of value of frequent flyer points that ‘Coles’ in you example buy and passes on to their customer, for 100$ so there is an immediate 25% profit margin. And that’s before they hold onto the effective money, sell a seat that was probably vacant, tie you to the airline, on sell something else like car hire, sell wine at a profit. The list goes on and on and on.

All the while, not being burden with expensive assets such as aircraft.

A accountants dream. Until the primary brand gets damaged.
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