lukestein’s avatarlukestein’s Twitter Archive—№ 8,841

    1. …in reply to @arpitrage
      @arpitrage @ben_golub @mattkahn1966 💯. I just meant that the fact that airline analysts and bankers have already spent time thinking seriously about the value of these programs *as spun-off, independent businesses* helps them serve as collateral.
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  1. …in reply to @lukestein
    @arpitrage @ben_golub @mattkahn1966 Part of the question for me (haven’t thought too seriously about this) is always how valuable the asset is divorced from its current owner. I think casual intuition means many people don’t imagine how a FF program could be valuable independent of the operating airline. I mean,
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    1. …in reply to @lukestein
      @arpitrage @ben_golub @mattkahn1966 how would they possibly structure the right kinds of incentive contracts with the airline? But it turns out that (a) people thought a lot about it and concluded it could be done, and (b) it got tried but was apparently not such a success that spinoff became popular.
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