Sometimes when we talk about the millions, billions and trillions of miles and points that members of frequent flyer programs have accumulated, people shake their heads and wonder if we really know what we are talking about.
Well, here’s an interesting new factoid. Buried deep within all the news about the United bankruptcy comes a statement from Jamie Dimon, CEO of Bank One, the credit card partner of United Mileage Plus. He recently told investors at a Goldman, Sachs & Co. conference that the United Mileage Plus credit card accounted for about 10 percent of the $69 billion in credit card balances the company was currently controlling. That’s about $6.9 BILLION, and that is only the balance right now.
How significant is that? Well, on news of the United bankruptcy, Bank One’s stock closed down about 80 cents. Seems investors worried that members would quit using the credit card for fear of loss of miles.
Doubtful. We think the results of their recent double-miles-for-all-spending promotion was so successful that we’ll see it, or something similar, in the new year.