Credit Cards Do an Airline Tango
Robin Sidel and Evan Perez report for the Wall St. Journal on the role some credit card issuers and acquirers are having to play as airlines with co-branded cards struggle financially to recover.
In another example of the maneuvering between card companies and airlines, Atlanta-based Delta yesterday finally signed a new two-year card-processing agreement with U.S. Bancorp, which handles the airline's Visa and MasterCard transactions. The deal ended a months-long dispute in which the bank was demanding a protective cash cushion -- now estimated by Delta to be between $600 million and $800 million -- in case Delta went out of business.
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