But then I found this article and it makes me wonder if a conspiracy is abound. Airlines use frequent flyer miles to pay Citi Group.
Here is an excerpt from that article that just screams collusion against AMEX's best customers...
AMR is in early talks to raise money from credit-card partner Citigroup Inc. by selling frequent-flier miles, the Financial Times reported yesterday, citing unidentified sources. AMR would follow at least four other large U.S. airlines in using such an agreement.Is there any stopping this sleazy activity? Was there a conspiracy to cause AMEX frequent flyer card holders to lose their miles, then use the lost miles to pay CitiBank for their Services?
Andy Backover, a spokesman for Fort Worth, Texas-based American, and Citigroup’s Sam Wong in New York declined to comment on the report. American’s AAdvantage is the world’s biggest frequent-flier plan, with more than 60 million members.
‘Never a Question’
“It was never a question of whether American had access to liquidity from its mileage program, but when it would elect to draw it,” said Douglas Runte, managing director at Piper Jaffray & Co. in New York.