Originally Posted by
GUWonder
AB pre-paying all OW partner airlines for miles? It hasn’t happened.
You saying American has been falsifying their
annual report?
We also sell loyalty program mileage credits to participating airline partners and non-airline business partners. Sales of mileage credits to non-airline business partners is comprised of two components, transportation and marketing. We account for mileage sales under our agreements with non-airline business partners in accordance with Accounting Standards Update (ASU) No. 2009-13, “Revenue Recognition (Topic 605) – Multiple-Deliverable Revenue Arrangements.” In accordance with Topic 605, we allocate the consideration received from the sale of mileage credits based on the relative selling price of each product or service delivered.
Without insider knowledge, it's hard to conclude which model (pre-paid/post-paid) is/was in effect with AB and AA.