FlyerTalk Forums - View Single Post - Delta in talks with AmEx to Unload Early Sky Pesos
Old Apr 13, 2020, 11:21 am
  #10  
woodenshoe101
 
Join Date: Feb 2012
Location: STL
Programs: DL DM; HH gold
Posts: 554
Originally Posted by The Situation
As soon as I start flying again, I am burning all my miles before they turn into pumpkins. I think AmEx decision makers are savvy enough to protect themselves from the inevitable - the article I read said this is by no means a done deal. AmEx is entertaining the offer, as they are obligated to due, but it seems they are concerned about the obvious issues (DL's long term viability and the value of miles (both redemption rates and if customers will want them)).
DL's long-term viability is absolutely a big concern for AMEX, in the sense that if DL went belly-up (at which point AA and UA would likely already be dead), it would be a huge blow to AMEX's business. They may huff and puff a little, but if a deal like this can help sustain their partner, they will do it. In the grand scheme (ex-COVID circumstances), DL is a lot more important to AMEX than the other way around, even though a big chunk of DL's net income can be attributed directly to the AMEX relationship.
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