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Delta Gets 1Billion From Amex  
User currently offlineCokePopper From United States of America, joined May 2008, 1190 posts, RR: 10
Posted (6 years 2 weeks 6 days 6 hours ago) and read 8620 times:

http://www.marketwatch.com/news/stor...3AE-271C-482F-9513-0AA5EDF731AC%7D

ATLANTA and NEW YORK, Dec. 9, 2008 (GLOBE NEWSWIRE) -- Delta Air Lines (DAL:delta air lines inc Sponsored by:
AXP 24.44, +2.66, +12.2%) today announced a multiyear extension of their exclusive Co-brand Credit Card partnerships. The companies have offered a portfolio of card products since 1996 that provide valuable opportunities to earn and redeem Delta SkyMiles(r). The multiyear extension allows continued expansion of the program with positive benefits to both Delta and American Express.
The companies also agreed to extensions

I guess this answers the question of what card Delta will keep.

31 replies: All unread, showing first 25:
 
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 1, posted (6 years 2 weeks 6 days 5 hours ago) and read 8387 times:

It was hard to imagine that Amex would have let DL go.

This seems like one of the richest affinity card agreements out there. anyone have comparisons?


User currently offlinePanamair From United States of America, joined Oct 2001, 4977 posts, RR: 25
Reply 2, posted (6 years 2 weeks 6 days 5 hours ago) and read 8290 times:
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From what I understand, the whole deal actually provides US$2 billion of liquidity to Delta - $1B immediately, and another $1B over the 2009-10 period.

User currently offlineFlyABR From United States of America, joined Sep 2003, 691 posts, RR: 0
Reply 3, posted (6 years 2 weeks 6 days 5 hours ago) and read 8201 times:

guess i can shread that usbank worldperks card now...eh!

User currently offlineDavescj From United States of America, joined Jun 2007, 2307 posts, RR: 0
Reply 4, posted (6 years 2 weeks 6 days 5 hours ago) and read 8138 times:



Quoting FlyABR (Reply 3):
guess i can shread that usbank worldperks card now...eh!

Don't say that too fast.

http://news.delta.com/article_display.cfm?article_id=11195

"Delta plans to continue its longstanding partnership with U.S. Bank through their existing corporate relationships including merchant acquiring, an expanded debit card program and corporate lending. " (from above link).

My question, where is AMEX pulling 1B from? And what are DL and AMEX customers going to get? And, of course, just how many miles do you get for 1B?

Dave



Can I have a mojito on this flight?
User currently offlineFlyABR From United States of America, joined Sep 2003, 691 posts, RR: 0
Reply 5, posted (6 years 2 weeks 6 days 4 hours ago) and read 8084 times:



Quoting Davescj (Reply 4):
Don't say that too fast.

why not? nothing in that press release would keep me from shreading my usbank signature card...


User currently offlineSNCntry32 From United States of America, joined Jan 2007, 1521 posts, RR: 0
Reply 6, posted (6 years 2 weeks 6 days 4 hours ago) and read 7979 times:

It is important to note that NW also has cards with Comerica too.

Who says they have to use just one card? US Bank is pretty huge in the midwest, more so then AmEx.

Quoting Davescj (Reply 4):

My question, where is AMEX pulling 1B from?

Bailout money?!



Long Live Memphis!
User currently offlineDelta763 From United States of America, joined May 2008, 318 posts, RR: 0
Reply 7, posted (6 years 2 weeks 6 days 4 hours ago) and read 7938 times:



Quoting Davescj (Reply 4):
My question, where is AMEX pulling 1B from?

Some financial companies actually played it smart the last few years and are perfectly fine, though you wouldn't know it by watching the news.


User currently offlineSTT757 From United States of America, joined Mar 2000, 16908 posts, RR: 51
Reply 8, posted (6 years 2 weeks 6 days 4 hours ago) and read 7885 times:



Quoting Delta763 (Reply 7):
Some financial companies actually played it smart the last few years and are perfectly fine, though you wouldn't know it by watching the news.

More like they were smart enough to spin off Lehman.



Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineNWADC9 From United States of America, joined May 2004, 4898 posts, RR: 9
Reply 9, posted (6 years 2 weeks 6 days 4 hours ago) and read 7873 times:



Quoting Davescj (Reply 4):
My question, where is AMEX pulling 1B from?

You, in the form of that bailout those whackjobs in Congress gave them...



Flying an aeroplane with only a single propeller to keep you in the air. Can you imagine that? -Capt. Picard
User currently offlineLatinAviation From United States of America, joined Nov 2003, 1279 posts, RR: 14
Reply 10, posted (6 years 2 weeks 6 days 4 hours ago) and read 7841 times:



Quoting SNCntry32 (Reply 6):
Who says they have to use just one card? US Bank is pretty huge in the midwest, more so then AmEx.

Amex will retain exclusivity once the NWA-US Bank co-brand expires, it's a similar deal to what US Airways and America West retained with Juniper (Barclay's) and Bank of America.

Quoting Davescj (Reply 4):
My question, where is AMEX pulling 1B from?

Amex has access to federal funding.


User currently offlineJlbmedia From United States of America, joined Jun 2002, 623 posts, RR: 0
Reply 11, posted (6 years 2 weeks 6 days 3 hours ago) and read 7723 times:
Support Airliners.net - become a First Class Member!



Quoting Delta763 (Reply 7):
Some financial companies actually played it smart the last few years and are perfectly fine, though you wouldn't know it by watching the news

I thought AMEX. was applying to become a "Bank" so that they would have access to the Federal bail out money. Is this where the money is going?

http://dealbook.blogs.nytimes.com/20...ss-to-become-bank-holding-company/



JLB54061
User currently offlineASFlyer From United States of America, joined May 2005, 1211 posts, RR: 6
Reply 12, posted (6 years 2 weeks 6 days 3 hours ago) and read 7638 times:

I love how Amex recently filed to operate as a bank so they can get in on some of the bailout money. Nice to know that some of that bailout money will be going to Delta.  Yeah sure

User currently offlineCokePopper From United States of America, joined May 2008, 1190 posts, RR: 10
Reply 13, posted (6 years 2 weeks 6 days 2 hours ago) and read 7433 times:

http://www.bizjournals.com/atlanta/stories/2008/12/08/daily34.html

"Northwest’s affinity card deal with U.S. Bank will be phased out by the end of next year, though Delta officials said the merged airline would continue to have a strong relationship with the Minneapolis, Minn.-based bank."


User currently offlineTWFirst From Vatican City, joined Apr 2000, 6346 posts, RR: 51
Reply 14, posted (6 years 2 weeks 6 days 1 hour ago) and read 7383 times:



Quoting ASFlyer (Reply 12):
I love how Amex recently filed to operate as a bank so they can get in on some of the bailout money. Nice to know that some of that bailout money will be going to Delta.

Where would you rather it go?

This is an excellent, mutually beneficial agreement which will provide both companies with a very important revenue stream long-term. AmEx worked hard to retain this relationship... several other companies bid for it, and there was absolutely no guarantee AmEx would get it. AmEx is a very well-managed company. In this environment, they're currently optimizing their investments to get the most bang for the buck. This is a great example. Why wouldn't a payments company want to have the exclusive co-brand agreement with the world's largest airline? And buying those miles now is a smart thing... the weighted average cost of those miles will only go up in the future.



An unexamined life isn't worth living.
User currently offlineFlyDreamliner From United States of America, joined Jan 2006, 2759 posts, RR: 15
Reply 15, posted (6 years 2 weeks 6 days 1 hour ago) and read 7361 times:



Quoting Davescj (Reply 4):

Don't say that too fast.

http://news.delta.com/article_display.cfm?article_id=11195

"Delta plans to continue its longstanding partnership with U.S. Bank through their existing corporate relationships including merchant acquiring, an expanded debit card program and corporate lending. " (from above link).

Yep, they'll keep a relationship for corporate banking and lending - the credit card however, they are losing.

Quoting SNCntry32 (Reply 6):
Who says they have to use just one card? US Bank is pretty huge in the midwest, more so then AmEx.

Who says one card - AMEX, the company that just gave DL $2 billion, that's who. They want the exclusive for obvious reasons, and have ponied up to get it. If you read the press release, it says AMEX will strengthen its presence in the midwest - for exactly that reason. AMEX was willing to offer a better deal, it appears.

When WorldPerks and SkyMiles merge in late 2009 - there will be one card for DL in the United States - the SkyMiles Amex.

Really, I doubt this comes as a surprise to anyone looking at this realistically.

Quoting Jlbmedia (Reply 11):

I thought AMEX. was applying to become a "Bank" so that they would have access to the Federal bail out money. Is this where the money is going?

AMEX already owns/operates a savings and loan (thrift) and thus is already a "bank." They have done so for years - it's a direct type of bank, where most of the business is done through the mail. They have a service center for it in Salt Lake City or somewhere like that. They've been bailout money eligible from the start.



"Let the world change you, and you can change the world"
User currently offlineDelta763 From United States of America, joined May 2008, 318 posts, RR: 0
Reply 16, posted (6 years 2 weeks 6 days 1 hour ago) and read 7349 times:



Quoting TWFirst (Reply 14):
Where would you rather it go?

I don't know... Back in my pocket?


User currently offlineRW170 From United States of America, joined Sep 2007, 430 posts, RR: 0
Reply 17, posted (6 years 2 weeks 6 days 1 hour ago) and read 7246 times:



Quoting FlyDreamliner (Reply 15):
EX already owns/operates a savings and loan (thrift) and thus is already a "bank." They have done so for years - it's a direct type of bank, where most of the business is done through the mail. They have a service center for it in Salt Lake City or somewhere like that. They've been bailout money eligible from the start.

No, they were not a bank and did not have access to the bailout money. They applied to become a commercial bank in November and the Fed waived the standard 30-day waiting period and approved their application. So as of last month they are eligible for bailout funds.

http://www.bloomberg.com/apps/news?p...601103&sid=arGpkkUeTxG4&refer=news



319/320/321/712/733/734/735/73G/738/752/753/763/CR2/CR9/DH8/135/145/170/175/190/D9S/D94/D95/M82/M83/M88
User currently offlineLipeGIG From Brazil, joined May 2005, 11459 posts, RR: 58
Reply 18, posted (6 years 2 weeks 6 days 1 hour ago) and read 7217 times:
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Quoting Davescj (Reply 4):
My question, where is AMEX pulling 1B from? And what are DL and AMEX customers going to get? And, of course, just how many miles do you get for 1B?

Credit Cards are the most profitable bank line of business. Not only because they got interests like 15-20% p.a. but also because they got annual fee plus a share of all our expenses. There's defaults, of course, but even with this, profits are huge and a partnership with an airline is the guarantee to access people that use to spend a lot to get miles. Theses cards wont attract people that can't got a good advantage, so to offer DL a 1B advance based on future FF purchases, it's a very good deal for DL and for Amex.

Amex earning per quarter is about US$ 800 million and as i mentioned, it's an advance for future FF Amex would purchase from DL to grant to their customers.



New York + Rio de Janeiro = One of the best combinations !
User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7567 posts, RR: 8
Reply 19, posted (6 years 2 weeks 6 days 1 hour ago) and read 7205 times:



Quoting CokePopper (Thread starter):
I guess this answers the question of what card Delta will keep.

Unfortunately and somewhat stupid as the US Bank isn't just a credit card, its also debit card through an ACTUAL bank, which has thousands more members that would take advantage of a card than those calling American Express especially only for the skymiles card, when looking at AMEX products its silly to get the Delta card alone when you can get the Amex Blue Sky card which offers more and gives you 1 for 1 miles that your not limited as to what carrier you choose, and there is no annual fee. Not to mention DL tops out as the most expensive airline to use miles on (max amount for biz class to Asia, etc. There was an article on this the other day)

Quoting FlyABR (Reply 5):
why not? nothing in that press release would keep me from shreading my usbank signature card...

Your right since DL is dropping US Bank.

Quoting SNCntry32 (Reply 6):
Who says they have to use just one card? US Bank is pretty huge in the midwest, more so then AmEx.

Apparently DL

Quoting LatinAviation (Reply 10):
Amex will retain exclusivity once the NWA-US Bank co-brand expires, it's a similar deal to what US Airways and America West retained with Juniper (Barclay's) and Bank of America.

Which is a shame.



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineSlcDeltaRUmd11 From United States of America, joined Jan 2004, 3640 posts, RR: 0
Reply 20, posted (6 years 2 weeks 6 days 1 hour ago) and read 7178 times:



Quoting Jlbmedia (Reply 11):
I thought AMEX. was applying to become a "Bank" so that they would have access to the Federal bail out money. Is this where the money is going?

For Industrial banks you see that American Express Centurion bank is the third largest in the country. Amex also has many many offices in Salt Lake City and New York City so helping Delta probably does personally benefit them. I think just logistically and everything since the credit card bank of Amex centrion is in Salt Lake City that is why they happened to get the delta card originally

Rank Industrial Bank assets in millions. Headquartered state.

1 Merrill Lynch Bank USA UT $60,367.7
2 UBS Bank USA UT $18,585.8
3 American Express Centurion Bank UT $15,933.0
4 Fremont Investment & Loan CA $11,316.4
5 Morgan Stanley Bank UT $8,674.9
6 USAA Savings Bank NV $7,099.6
7 GMAC Commercial Mortgage Bank UT $4,872.5
8 GMAC Automotive Bank UT $2,429.5
9 Beal Savings Bank NV $2,420.2
10 Lehman Brothers Commercial Bank UT $2,127.2


User currently offlineFWAERJ From United States of America, joined Jun 2006, 3835 posts, RR: 2
Reply 21, posted (6 years 2 weeks 6 days 1 hour ago) and read 7170 times:

No surprise here.

I read somewhere that the SkyMiles card is 5% of American Express's credit/charge card business. Add in the Membership Rewards points to miles transfer which Delta also particpates in (it, too, was renewed), Crown Room Club access for Platinum/Centurion Card holders (ditto), merchant services (Delta would use these no matter what), and American Express Travel, and the Delta contract is serious business for American Express.

Losing the SkyMiles card to a competitor such as US Bank, Chase, or Barclays would have been a huge blow... AmEx just laid off 7,000 employees worldwide already, and they would have had to lay off a lot more had they lost the SkyMiles contract. Basically, AmEx needs Delta more than Delta needs AmEx.



"Did he really need the triple bypass? Or was it the miles?"
User currently offlineFWAERJ From United States of America, joined Jun 2006, 3835 posts, RR: 2
Reply 22, posted (6 years 2 weeks 6 days ago) and read 7148 times:



Quoting Burnsie28 (Reply 19):
Unfortunately and somewhat stupid as the US Bank isn't just a credit card, its also debit card through an ACTUAL bank, which has thousands more members that would take advantage of a card than those calling American Express especially only for the skymiles card,

Re-read the press release: US Bank will continue to offer a debit card for the new Delta. In fact, DL and US Bank will have "an expanded debit card relationship" (likely Visa-branded, as American Express does not offer a debit product), and will continue to provide Visa/MasterCard processing to DL.



"Did he really need the triple bypass? Or was it the miles?"
User currently offlineNYC2theworld From United States of America, joined Mar 2007, 666 posts, RR: 0
Reply 23, posted (6 years 2 weeks 6 days ago) and read 7146 times:

Didn't AMEX lend Delta (along with GE Capital) some money during bankruptcy? Delta wasn't going anywhere, AMEX always had this in the bag.


Always wonderers if this "last and final boarding call" is in fact THE last and final boarding call.
User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7567 posts, RR: 8
Reply 24, posted (6 years 2 weeks 6 days ago) and read 7118 times:



Quoting FWAERJ (Reply 22):
Re-read the press release: US Bank will continue to offer a debit card for the new Delta. In fact, DL and US Bank will have "an expanded debit card relationship" (likely Visa-branded, as American Express does not offer a debit product), and will continue to provide Visa/MasterCard processing to DL.

The one that I read only said that the card deal with US Bank will be phased out in 2009, implying all cards. So sorry I didn't read all 30 news reports that came in my inbox.



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
25 DeltaL1011man : how is it stupid? Because NW did it doesn't count. fact is AMEX is giving Delta 2B for it..........what do you want them to say? "oh no You saved our
26 Phileet92 : I say keep them both! give people choices, if they want a Visa then get a Visa, if not then go with Amex
27 Jetjeanes : Im really surprised as ax is not in the best finacial shape and their stock is down..so they musthave gotten some cash from somewhere. Delta really ne
28 JohnClipper : Yeah, it came from us, the U.S Taxpayer. Do we get anything in return? NOT
29 Post contains links Panamair : At the bottom of the main Delta press release: "....Delta plans to continue its longstanding partnership with U.S. Bank through their existing corpor
30 CO777DAL : I get WorldPerks Miles from my Comerica cards. I do not see Comerica cards mention anywhere. I wonder what will happen with my cards? Since Comerica i
31 M404 : Does anyone have the answer to a simple consumer question that might indicate which card the customer wanted? i.e. Which charged the least interest an
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