Originally Posted by
rgAAFT
So, Are you implying that citi does not have to "buy" the miles required from AA to fuel such as promos as the 100k? (which can be had multiple times over) whats their reasoning behind that then?
I don't think that's the implication at all. The 100K promo is offset by the $450 annual fee + revenue on $10K spend. There are loads of people with 100K+ TY points just sitting in their accounts (my parents have 250K+). If Citi made AA a transfer partner, it wouldn't shock me if 100 million+ TY points got dumped into AA (2000 people with 50K+). Even at the bargain rate I'm sure Citi has negotiated with AA, that's a solid chunk of change without any current period revenue to offset it. They could make an adjustment to long-term liabilities (outstanding TY points), I guess.
Just guesswork, I don't know.