This is an extract from the report “Riders on the storm: Loyalty programmes can help airlines weather the challenges”, contained in Airline Leader, Issue #53
Note: Since the publication of this report, two more US carriers followed the example of United Airlines. In Sep-2020, Delta Air Lines announced the formation of a wholly owned loyalty subsidiary, providing financing in the form of senior secured notes plus a credit facility. After an upsize, the total gross proceeds came to USD9.0 billion, at a blended average annual rate of 4.75%. In the same month, Spirit Airlines announced it raised a total debt of USD850 million secured by the core assets of its loyalty programme, including the cash proceeds from the co-branded credit card and the $9 Fare Club programme membership fees.
- Loyalty programmes adjust to the non-flying reality, extend status.
- Programmes utilised…