PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Municipalities Are Finding It Difficult to Bank the Unbanked

Tim Sloane by Tim Sloane
November 26, 2013
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Citibank’s contract to operate the AAdvantage cobranded credit card program is proving to be a bone of contention as American Airlines seeks to merge with US Airways, and emerge from bankruptcy.

From PaymentsSource:

Since American Airlines parent company AMR Corp. filed for bankruptcy in November 2011, the contract with Citibank to operate the Citibank AAdvantage Program has remained in effect on an interim basis. In a motion filed with a federal bankruptcy court in New York, Citibank requested that the judge overseeing the case require American to make a final decision to continue to honor the contract.

The program itself has significant value as a business and as an asset to the airline, with potential to increase in value:

The AAdvantage program is the oldest and largest frequent flier program in the U.S. It has 69 million members and issued 167 billion miles in 2011, according to regulatory filings. In 2009, Citibank paid AMR $1 billion to prepurchase AAdvantage miles that are awarded to its card holders.

After the American/US Airways merger, the AAdvantage program stands to grow larger with the addition of US Airways’ approximately 30 million Dividend Miles members, though consumers who have accounts with both programs will create some overlap.

The program’s size and value makes it of strategic importance to both Citi and the airline:

As part of the bankruptcy process, a company must decide to assume or reject its outstanding contracts. Citi claims its 2008 agreement with AMR requires it to assume the contract in the event of a bankruptcy filing.

Representatives of both companies emphasize that the situation will not negatively impact program members, and that this is just a procedural step in the bankruptcy process.

Click here to read more from PaymentsSource.

Tags: Prepaid
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix