Great question. I just booked two awards in Biz on CPH-(SK)-LHR-(NZ)-HKG-(SQ)-SIN-(SQ)-CPH and wondered how NZ and SQ are paid for these flights.

I am confident that awards are released in buckets (and I have not figured out why UA cut inventory on these yet) - but how is payment made. The above has cast some light on it - but would love some insight.

And yes Intercon Biz awards must be loss leaders.