aarif1

I'd agree that the list is pretty disappointing, but only 2 of the 8 airlines are middle eastern.

rufflesinc

Bleh, I never got any thankyou cards precisely because they didn't transfer to miles. Too bad I just did a churn last week!

FTR 787

I believe its the Saudi royal fam that owns 10% of Citigroup. and this was before the subprime meltdown. not sure if they've doubled down and invested more (or reversed course and divested now -- not that it matters considering how frivolous they are with their money.)


I think there are many reasons for this list and the decision that was made to go ahead with it (since we dont know the inside history/behind the scenes details of the TY program for purposes of transfer partners.) but from this news alone we can deduce:

- Citi wants to let its customers know (or rather think -- cause perception is reality) that its working to change things up by 'enhancing' its current program and product offerings. but at the same time as a new player in the transfer program, they prolly wanna minimize their costs.

- which means signing up transfer partners which are gonna require a lot of effort to build up substantial balances to redeem anything of worth. all while the risk of imminent and stealthy deval is constant (just ask TG) ... the more Citi's customers work aka spend to build up their balances, the better it is for business and their bottom line. add the cherry on top about aspirational awards that never come to fruition cause one is always chasing the carrot ahead on a stick.

- IMHO its clear that Citi thinks MEA & APAC are bigger growth areas that they need to target, not only for its customer base that uses their products but perhaps they think the 'demand' is gonna come from these regions. I'm talking about where ppl might wanna fly to and the FFP/loyalty programs they would thus ascribe to.

- with that above line of thinking in mind, perhaps the US/EU markets are tapped out (for now) ... and I dont mean in terms of business generated for Citi (which could be stagnant and would explain marketing pushes like the CitiAA Exec bonanza) but perhaps transfer partners have exclusive agreements with UR/MR/SPG. or perhaps the US/EU transfer partners have a higher cost of doing business that Citi cant justify right now (keep in mind Citi in effect 'buys' the points that you transfer to their partners.)

UA Fan

Excellent news. So this rumor can finally be put to bed.

Rus925

So why do Chase and AmEx offer transfers to MileagePlus and SkyPesos, respectively? I would guess they're waiting for AA and US programs to merge, maybe for a contract stipulation with Barclaycard to expire.

I thought the goal was to push people into the JPM Select card that lacked a bunch of CSP's bonuses. They got rid of JPM Select a while back, but they seem to be turning CSP into the Select card: dropping the 7% annual bonus but bringing primary rental coverage.

I think they use the earliest-expiring points first. As points from the Preferred-level and higher cards don't expire, that leaves your banking points, which, I think, expire after three years.

bbmatt

can points earned from my forward card be eligible for this transfer if I apply for the citi premier/prestige card? its' still my main card for dining/amazon at 5pts/$

roki

Yes, all points earned combine into one ThankYou account and are eligible.

rgAAFT

So, Are you implying that citi does not have to "buy" the miles required from AA to fuel such as promos as the 100k? (which can be had multiple times over) whats their reasoning behind that then?

roki

I don't think that's the implication at all. The 100K promo is offset by the $450 annual fee + revenue on $10K spend. There are loads of people with 100K+ TY points just sitting in their accounts (my parents have 250K+). If Citi made AA a transfer partner, it wouldn't shock me if 100 million+ TY points got dumped into AA (2000 people with 50K+). Even at the bargain rate I'm sure Citi has negotiated with AA, that's a solid chunk of change without any current period revenue to offset it. They could make an adjustment to long-term liabilities (outstanding TY points), I guess.

Just guesswork, I don't know.

FTR 787

no, why would I be implying that? or where in my post did you gather that from.

anyways, also keep in mind Citi is a giant entity. CitiAA and Citi TYP are very much different departments, they might as well be diff subsidiaries or sister companies under Citigroup.

CitiAA has specially negotiated rates with AA. not to mention they already bought about a billion miles for a huge discount during the AA bankruptcy. and while CitiTYP could get em cheaper (at cost?) from them rather than AA directly now, not sure CitiAA would be willing to part with their stash. yep, internal politics is gonna be a bit of a grind here to get both kids to 'share' their toys. and in this case I dont see CitiTYP offering anything of value to CitiAA, just 'taking' from an established player/dept.

and what he said ^

nall

Maybe it's just me, but I feel like the cannabalization train has already left the station. The Citi Exec and Prestige cards used to be complimentary, but with the addition of Admirals Club access, increased value for AA/US spend, and the upcoming dropping of some of the Prestige's unique features, it seems like there's little reason to have both.

Supposedly in the Barclays US Air contract, miles for signup bonuses cost even less than normal miles.

rgAAFT

I guess I just wasn't aware how separate the different entities at citi really were.(?)

mia

Citi knows how these programs work, and they have the requisite contacts with pretty much any airline. In 1984 Citi invented Diners Club Rewards, the first card program that awarded points which could be transferred to a variety of airlines. The program still exists, but has been sold on to BMO.


In the case of American Express the reason is historical. Delta was one of the original partners in Membership Miles, as the American Express program was called when in launched in 1991. The SkyMiles credit cards came later.

Chase did not add UA to Ultimate Rewards until a few months before Continental OnePass ceased to exist. I think they knew they need a Star Alliance partner to make the program appealing. Now they also have SQ, and I wonder if UA will remain long term.

I do also wonder if Citi will cave in and add AA to ThankYou Rewards after the legacy balances are flushed out.

UA Fan

I hope they give some notice when/if they plan to do this.

amolkold

The only program that seems worthwhile is SQ's, and I can already transfer from Amex and Chase to them. Using my balance for 1.6 cents each toward AA/US flights seems a better option.