Originally Posted by JustinCredible
This is what I thought when I first looked at all the offers. Are the banks that offer these cards (People have up to 3 United Visa's and got bonuses for all three cards averaging 12.5K a piece) unloading their miles (do they buy bulk?) before a program goes under?
Hardly!
BankOne, which issues the United Visa, is very much betting on United's continued survival. First, the airline (while not profitable in its own right) adds ~ a billion a year to BankOne's bottom line through this partnership. Second, for proof that BankOne believes UA will make it, consider that they provided hundreds of millions of dollars in debtor-in-possession financing to United when UA entered Chapter 11. They certainly put their money behind the belief that UA would continue to exist....
(Though admittedly DIP financing is a surer bet to recoup even in liquidation than other forms of debt.)