FlyerTalk Forums - View Single Post - Sheer Speculation: Rumored AAdvantage Changes Coming in May 2009?
Old May 1, 2009, 2:27 pm
  #11  
bernardd
 
Join Date: Jan 2007
Location: Mostly AUS or rural England
Programs: BAEC redundant Bronze, AAdvantage Lifetime PLT, CO, WN, B6
Posts: 6,526
IF, and it's a very big IF, anything major is going to happen this month, there may be another part of the equation that's missing.

We all know AA is getting worried about cash, and the latest filings discuss its ability to meet Bank covenants. AA has also said it is talking with Citibank about pre-selling miles to raise cash, and several times in the past it has been suggested that AAdvantage is worth almost as much as the airline.

Drawing the obvious conclusion, maybe any possible changes shift some ownership to Citibank, or prepare the ground for that to happen in the future. What puzzles me if AAdvantage were to be totally independent of the airline is how AA measures and encourages customer loyalty through EXP, PLT etc. levels so if we see some seperation of the two functions, maybe some change to the qualification process, I'd put money on the eventual sale of AAdvantage.
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