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How Airlines Quietly Became Banks
Video

How Airlines Quietly Became Banks



Editorial Rating

9

Qualities

  • Eye Opening
  • Concrete Examples
  • Engaging

Recommendation

If any industry can claim to have huge overheads, it’s the airlines. A safe and on-time flight depends on highly technical equipment managed and maintained by well-trained employees navigating myriad moving parts – airports, passengers, schedules and international law, among others. So how is it that airlines can afford to give away free flights and special perks to their loyalty program members? In this eye-opening video, Sam Denby explains the hidden financial scheme that makes airlines profitable. If you have ever wondered why airlines and banks are teaming up to make you offers you can’t refuse, here’s the answer.

Take-Aways

  • The first airline loyalty programs started in 1978, and airlines have been turning into banks ever since.
  • Air carriers lose money as transportation companies, but they more than make up for it as financial services providers.
  • Airlines have essentially created their own currency, over which they have total control.

About the Speaker

Wendover Productions is an educational YouTube channel created by Sam Denby in 2010. Denby’s other channels include Half as Interesting and Extremities.


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