Explorer Bank, a major credit card issuer, is evaluating a partnership proposal from Alpha Airlines. The case explores how to assess the potential partnership, including market size estimation, profitability analysis, and risk assessment. Key considerations include revenue sources (merchant fees, customer fees, interest), costs (processing, partner revenue share, benefits, credit losses), and breakeven analysis. The partnership could benefit both parties through customer access and loyalty. To ensure profitability, customers need to spend at least $1000 monthly. Strategies to increase spending include enhancing rewards, offering non-travel benefits, and improving convenience features. The recommendation is to proceed with the partnership, given the potential benefits and achievable profitability targets.