Ask HN: Are airlines running a ponzi scheme

1 pointelisharobinson2 comments

i booked a flight few days ago for the second time in 1 month , with the same result the transaction failed with money being deducted from me . Are airlines hiding behind "network issues" and running a loan racket. Basically they are getting a interest free loan which they dont need to pay back within any legal limit and stall indefinitely.

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That's not a ponzi. The key element of a ponzi is that new investors' money is used to pay off old investors because there is no real business. The airlines do not promise you anything other than a seat on an airplane. There is no investment.

I'd say it costs them more in customer support to refund the money than the possible gain (interest). Interest rate are already so low big companies can borrow essentially interest free, not sure about airline industry specifically.

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