Originally Posted by
woodenshoe101
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.
The AMEX/DL overlap continues to point to Buffet at some point (even if he sold to get below 10% a few days ago). Wonder if DAL would consider spinning off SkyMiles and selling a stake to Buffett and AMEX as another alternative to generate cash.
Presumably both would benefit from the data
Originally Posted by
Dieuwer
Perhaps.
But AMEX will have to answer to THEIR shareholders, not the Delta's shareholders. If AMEX seems to be "giving away" money for no good reason, AMEX shareholders will be angry.
True though if Buffett gives tacit approval on something like this, I assume his large stake in both would help carry the day with shareholders from both sides.