1. Never said churning was a win-win-win, I said the mileage game was a win-win-win
I understand how it's a win for the airlines (sell billions in currency that's so easily devalued, and probably kept on the books as a liability at a tiny fraction of $ received in exchange) and the banks (new credit card customers). However, I am not sure if the "players" of the game are actual winners. Between all the time and effort spent on accumulating these currencies, finding award space, and travelling to places that might be beautiful, interesting and full of נפלאות הבורא, is this really what our life should be about? Please don't get me wrong, I am not criticizing, I am trying to open up a discussion about this.
3a. Airlines have clearly decided that credit card customers are more valuable than regular non-premium flyers. They sell the miles to banks for billions of dollars and they haven't devalued those earnings. Earnings from regular coach flying have been sliced down to nothing as that isn't where the profit is made.
a. Don't they make profit on all the extra fees in coach?
b. I have always been very curious as to how airlines pay (or account with) each other for award space, mileage accrual etc. I would appreciate pointers for an education on this, if available (I actually have a business purpose to this).