Amex Quintuples Points For BA Rivals

American Express, which is locked in a bitter dispute with British Airways over merchant fees, has launched an extraordinarily generous promotional deal in collaboration with BA's two biggest rivals. Amex is offering five times the normal number of Membership Reward points for holders of its charge card who use it to book flights with Virgin Atlantic and BMI British Midland. The offer, which is for U.K. cardholders only, runs until July 31.

A special offer of quintuple points on a loyalty program virtually is unprecedented. Promotions more commonly offer double or, in exceptional cases, triple points. In the UK, Amex also markets a co-branded card with British Airways, which offers BA Miles as its loyalty currency instead of Amex's own Membership Rewards scheme. Amex is threatening to terminate its business relationship with the airline because BA no longer accepts card merchant fees on corporate net fares. Amex's travel agency division also has de-listed BA as a preferred supplier as a punitive action.

When asked if there was any connection between the dispute with BA and the exceptional offer on Virgin and BMI flights, a spokesperson said: "None at all. This is a deal we have put together with our card partners for our members to enjoy."