While I consider your assessment to be accurate, is there any reporting from/about Citibank & Barclays re this?

Just look at UA post-merger - not so cute!

 

That whole email thing doesn't work the way you think it does.

 

Post merger, UAL stock has done almost as well as DAL and much better than the S&P 500 in terms of total return.

 

You misinterpreted my post, again.

I did not say anything about e-mail. Where did you get that idea?

Based on what you wrote, you appear to have incorrectly assumed that I would use e-mail to contact the directors.

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Whether email or by other means, directors usually don't have that kind of time on their hands. They also generally don't have much regard for self-interested theories from customers on how the business should be run.

 

Your post is funny!

You do not know by what means I will contact the directors. You also do not know my business background.

I am very much aware of the roll of a director. My awareness and knowledge is why I chose to use the route I chose (contacting AA's directors).

Admittedly, contacting AA's directors and furnishing them with verifiable outside information is unorthodox.

Your comment "They also generally don't have much regard for self-interested theories from customers on how the business should be run." is the funniest part of your response.

However, bringing a serious matter to the attention of AA's directors is NOT telling directors "how the business should be done." as you wrote. I did not write that I intend to tell the directors how AA should be run. I have no clue where you got that idea.

At the very least, the matter will be discussed by the directors. The directors will gain knowledge of how the changes are perceived by AA customers and by the two AA sponsor banks.

In other words, the directors will not be limited to the information put before them by AA management.

If the directors choose to do nothing, so be it.

On the other hand, it is possible that director involvement might cause AA management to rethink some of the devaluations.

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It's a lot more common than you'd think. In one company where I worked, directors would sometimes get unsolicited advice and analysis from customers (the conclusion inevitably being that the company's very survival depends on customers getting more free stuff and/or lower prices). Typically the director would forward around the more ludicrous bits, we'd all have a good laugh, and then go on making business decisions based on real data.

 

Well, I guess I love it too, but my question, specifically for you (and it's a sincere one) is do you think it makes any material difference to AA?

I mean Lucky and Gary both have written about this on multiple occasions, and I don't think it's a mystery to AA management that they are not releasing sAAver awards. I'm just not sure they care and I don't know that Lucky and Gary writing about it and getting 20 or 30 comments will really have any material impact on the situation.

Regards

 

I doubt that most of the Directors even understand the intricacies of the Aadvantage program or even avail themselves of it.

 

The important point for directors is the financial implications of the program. There's no need for them to know more details - that's what management is for.

Outside directors get a number of free flights, Admirals club membership and EXP and CK status.

 

richarddd is absolutely correct.

There is no need for detail -

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It also doesn't matter to them. If they fly AA instead of private, they are in first class. AAdvantage is just a profit center that appears to be quite healthy. Most likely that's the end of their analysis (if any was done at all by them).

 

Doubtful they themselves did the analysis, but they almost certainly rely on the work of people who understand the data quite well.

 

On the contrary, what happens to a company does matter to board members.

You seem to not know the purpose or function of a Board of Directors for a publicly traded company.

There are consequences for board members who do not comply with their duties.

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I understand emailing might do nothing, but I made sure I emailed both Citi VP and American Advantage president and linked them to this thread which has nearly 200k views.

As others have stated, the fiduciary responsibility is to shareholders. That not only applies to American but also to Citi and Barclay's.

So in terms of credit card revenue, there are many better options then putting credit card spend on any Citi product at this time (AA or TYP) when compared to MR and UR.

With the deterioration of Advantage and even other programs, the pendulum will shift to spending on MR/UR products over specific airline card products and even over TYP. That would certainly materially impact Citi shareholders.