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?
no, why would I be implying that? or where in my post did you gather that from.
anyways, also keep in mind Citi is a giant entity. CitiAA and Citi TYP are very much different departments, they might as well be diff subsidiaries or sister companies under Citigroup.
CitiAA has specially negotiated rates with AA. not to mention they already bought about a billion miles for a huge discount during the AA bankruptcy. and while CitiTYP could get em cheaper (at cost?) from them rather than AA directly now, not sure CitiAA would be willing to part with their stash. yep, internal politics is gonna be a bit of a grind here to get both kids to 'share' their toys. and in this case I dont see CitiTYP offering anything of value to CitiAA, just 'taking' from an established player/dept.
Originally Posted by
roki
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.
and what he said ^