Cash is King
Airlines have announced liquidity transactions by the 5-gallon bucket full this week. I suppose American’s news that it finally moved forward with an advance mileage sale to Citi was the biggest deal, but that was actually last week. American announced a share offering this week. Delta and US Airways were also in on the action with either debt or stock sales to raise cash. Yes, the squirrels are salting away nuts for the winter. Random musing nested thought: is anyone else out there amazed at the ability of this industry to generate cash?
Cash is King Even if it Isn’t Nice
American canceled its non-union retiree medical coverage effective at year’s end. I don’t know what that benefit cost the company, but it must have been significant. Like I said, cash is king…even if it isn’t nice. I wonder how many companies in any industry still offer this benefit?
Citi AAdvantage Deals in the Making?
If Citi is prepaying for $1 billion + in advance AAdvantage miles and obviously solidifying its relationship with American, do you think it’s remotely possible that they might offer a card product that gives elite qualifying miles for a certain amount of spend? I don’t see it happening, but one can dream….and take advantage of the double eqm offer that’s already out there for actually getting on a plane and flying (gasp). Yes, I am.
Come to think of it, I previously posted about an offer that caught my eye. Check out www.fly9.citicards.com. I haven’t seen Citi push an AAdvantage Visa card for personal use in a long time. But there’s an ad in this month’s American Way doing just that. The signup bonuses are getting more generous too….30,000 miles.
Southwest Pilot Contract
Southwest’s pilots are voting on their recently renegotiated tentative agreement. This one is going to pass. If not, then I really don’t want to know what the temperature has dropped to in that very hot nameless place that starts with “H.”