Originally Posted by
BOS1971
Wow, this is interesting. One thing I wonder about in your statement here: "Delta gets paid ($7bn on its way to $10bn) for mileage points."
Is it really that simple? I would think that things like MQDs bonuses (the 2500 MQD per year from each card), companion certificates and skyclub visits require some compensation too.
Does AMEX compensate Delta based on the number of skyclub visits "you" (collectively) make in a given amount of time?
Have yet to see a itemization of that $7-10bn AMEX revenue, or costs Delta to fulfill. Perhaps the AMEX investor documents state the dollar amount charged on DL co-branded cards and then you can back out the cost of the RDM paid for from that, if it is even published what AMEX pays for a RDM. Doubt it's 1 cent, so there is cost sharing there between AMEX and DL. The rest of the service fee earned by AMEX from co-branded card spending represents costs for SC entry, other card perks (Delta, Uber, Global Entry reimbursement, etc), and margins for AMEX.
Just one look at the AMEX Centurion Lounge in ATL and it is pretty obvious that paying DL for SkyClub entry was a pain point for AMEX, so they created a place where they can neutralize that expense or even earn some of that money back from DL.
Makes me wonder if I check in to Centurion Lounge with my DL Reserve card, does DL pay AMEX, but the same visit when checked in with an AMEX Platinum does not trigger any "counters" in the AMEX/DL relationship?