FlyerTalk Forums - View Single Post - Will UA let Chase spend earn MM/Lifetime mile credit as AA has done?
Old Apr 20, 2020 | 11:56 pm
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deskover54
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Originally Posted by spartacusmcfly
Agreed. Well said.



This is where I think you are grossly underestimating the abuse by the broader cardmember base. What if this happened in your Scenario #1 :

1. 10,000 small businesses shifted all their spend to the United Business Card, each achieving $4M of spend by year-end.
2. 10K new LT GS members.
3. You would grow your GS population from 20K to 30K -- with 10K of the 30K being LT GS members.
4. Massive Mileage Plus dilution, but maybe that's ok if UA gets something huge in return -- like billions of dollars that allow them to survive Covid.
5. Unfortunately for UA, the payment from Chase for 10K * 4M miles, at 1/2 cent/mile is only = $200,000,000.
6. $200 million is mice nuts.
7. If they wanted $200 million, they could have sold the Chinese 23 planes instead of the 22 they sold them last week.

So in summary, they won't let CC spend earn LT miles as it is incredibly dilutive to MP, as J.Edward laid out in his post, but also because the financial benefit for such dilution is very small.
if UA believed they would get 10k new small businesses using their card by doing this change, they would do it in a heartbeat. that's real cash.
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