Merged Airlines Successfully Efficient: Grisanti

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June 17 (Bloomberg) -- Christopher Grisanti, co-founder at Grisanti Capital Management, examines the strength of the airline industry, changes to the frequent flyer rewards system and the business impact of mergers. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Mccourty a airport in new york city mobbed.

Denver airport mobbed.

This is why you like the airlines.

We do.

Terrible to think we get so aggravated paying with times, meals, but it is all revenue that goes right to the bottom line of folks like united and delta.

What you like most of all?

Mike favorite would be american -- my favorite would be american.

Large institutions probably will not go near there to see how it trades.

It has a lot of domestic is this.

Right now domestic business is where you want to be.

We have found from six down to three.

You needed -- united, delta and american left.

They're splitting it up in a very efficient way.

I am wondering about the changes to the frequent flyer programs.

Doesn't have any kind of financial impact when they make the rules different to make it harder to redeem the points.

The big points now are points per dollar.

Now the business flyer does not feel as resentful.

L this is a loyalty program for the business customer.

Left look at a chart of alaska air.

I saw the concord take off from boston to london.

It was a moonshot.

What is the leave ability they can sustain cash flow?

We have done a study with the last four decades better airline profits up and down.

When they go up, -- this time we do not have the capacity growth yet.

They have been much more controlled this time.

The reason for that is it is not just luck.

There is now only three and understand.

I go back to mergers.

Lex the manager of united said this is the first time in the history of the business we have run them as businesses.

They are not utilities.

Travelers are complaining, two.

Should not bother you so much when the prices go up because they were not making much money before.

Little comfort to tom whose

This text has been automatically generated. It may not be 100% accurate.

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