Citi charges US$595 for ‘Strata Elite' credit card to rival Amex, Chase
The 'Strata Elite' card will feature an annual fee of US$595, a price that the bank says can unlock almost US$1,500 in value if used to its maximum potential. It offers the largest points rewards for hotels, car rentals and attractions booked on Citigroup's travel platform, as well as restaurant dining at peak weekend times.
The card also bakes in perks for customers who fly with American Airlines Group, giving four passes per year to the airline's airport lounges and the ability to transfer Citigroup 'ThankYou Points' into reward miles with the airline. That follows an expansion of the firms' existing card partnership in December, when American Airlines chose to make Citigroup the exclusive issuer of all its credit cards.
In addition to American Express and JPMorgan, Citigroup will be competing with other banks trying to break into the premium space, including Capital One Financial. The customers they vie for are highly sought after, known for their willingness to pay annual fees, and reliably spending more and prioritising travel and hospitality.
'It's always been highly competitive, competition makes us all better,' Pam Habner, Citigroup's head of US branded cards and lending, said.
At US$595, plus US$75 a year for each authorised user, the card is cheaper than JPMorgan's Sapphire Reserve, which Habner helped launch when she worked there in 2016. That card's annual fee will jump to US$795 from US$550, JPMorgan said last month.
In addition to the perks rolled out by Citigroup directly, the Strata Elite card will be the first in Mastercard's recently announced World Legend tier of credit cards, meaning it comes with an additional suite of benefits. World Legend cards include access to the Mastercard Collection, which translates into ticket pre-sales and streamlined airport security access, among other rewards.
'We designed benefits that we know our customers can use,' Habner said, adding that the card was designed to give customers rewards for types of spending, rather than handing them coupon-style rewards to use with specific companies.
The card offers perks designed for frequent travellers, including hundreds of US dollars worth of credit to spend on Blacklane, a chauffeur service, and on GlobalEntry or TSA PreCheck to get through airport lines faster. BLOOMBERG
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Straits Times
5 hours ago
- Straits Times
Fast train, slow profit: Indonesia's Whoosh hits a money bump
Sign up now: Get ST's newsletters delivered to your inbox The trains servicing the route can reach 350kmh, though their speed varies along the journey – with the passengers hearing only a whisper-soft hum. JAKARTA – Hardly making any noise, the bullet train hurls past West Java's rice fields as it races from the nation's capital towards Bandung, Indonesia's third-largest city. This is Whoosh, the country's – and South-east Asia's – first high-speed rail service, with the trains able to cover the 142km separating the two cities in just 45 minutes. The trains servicing the route can reach 350kmh, though their speed varies along the journey – with the passengers hearing only a whisper-soft hum. Twelve trainsets, including one for inspection, operate on the line. All were designed and built in China but customised for Indonesia's tropical climate and seismic risks. Whoosh has largely lived up to its name since it was launched in October 2023. The sleek red-and-silver trains glide in and out of stations with clockwork precision. Inside, plush reclining seats, carpeted floors, digital displays and attendants in crisp uniforms create an air of calm efficiency as they guide passengers and help with luggage. 'I'm so proud of Indonesia's progress; the ride is so smooth, quiet and fast,' says Ms Eka Rani, a 36-year-old marketing officer, as she settles into her seat on the train from Jakarta. 'The ride is too short to spend time working on my laptop, so I shall just relax and enjoy the scenery.' The journey begins at Halim station in Jakarta and ends at Tegalluar Summarecon station on the outskirts of Bandung, with brief stops at Karawang and Padalarang along the way. By June, Whoosh had ferried more than 10 million passengers on some 30,000 trips. And in a country long plagued by congested roads and ageing railways, it became a symbol of Indonesia's infrastructure ambitions. A flagship initiative under former president Joko Widodo and part of China's Belt and Road Initiative, Whoosh slashed travel time between Jakarta and Bandung, a journey that would otherwise take around three hours by car or regular train. But the speed and sleekness belie a sobering fact: Whoosh is bleeding money. Losing steam Whoosh is an acronym for Waktu Hemat, Operasi Optimal, Sistem Handal – meaning Time-Saving, Optimal Operation, Reliable System. Built at a cost of US$7.3 billion (S$9.4 billion), the Jakarta-Bandung high-speed rail was funded largely through loans from the China Development Bank. Operated by Kereta Cepat Indonesia China (KCIC), the project was a joint venture between Indonesian and Chinese state firms. The Indonesian stake was held by Pilar Sinergi BUMN Indonesia (PSBI), a consortium led by state rail operator Kereta Api Indonesia (KAI). Commuters taking a 20-min feeder train to the Bandung city centre after their Jakarta-Bandung journey on Whoosh train on July 30. ST PHOTO: ARLINA ARSHAD In 2024, PSBI posted losses of 4.19 trillion rupiah (S$330 million), according to KAI's financial report. KAI, as PSBI's majority shareholder, accounted for 2.23 trillion rupiah of that amount. The Chinese side has not released its figures, though analysts believe their books are similarly in the red. Whoosh is bleeding money due to a combination of massive construction debt, low passenger numbers and high operating costs. Its remote station locations and weak feeder links have also made it less attractive to daily commuters. Indonesia's newly established sovereign wealth fund, Danantara, has stepped in to help address the mounting debt. 'We are currently reviewing operational matters and considering long-term solutions to address the consortium's substantial debt,' Danantara chief operating officer Dony Oskaria told lawmakers during a parliamentary hearing on July 24. He added that several proposals would be submitted to the government. Bank Permata chief economist Josua Pardede said Whoosh's losses stemmed largely from underwhelming ridership. Between October 2023 and December 2024, the train averaged just over 16,000 passengers daily – barely half its 31,000 target. Cost overruns also inflated financial projections. 'The resolution plan through Danantara, which involves restructuring debt, is indeed necessary, given the large financial burden caused by cost overruns and not meeting the revenue target,' he told ST. Between October 2023 and December 2024, the train averaged just over 16,000 passengers daily – barely half its 31,000 target. ST PHOTO: ARLINA ARSHAD But some observers remained sceptical that Danantara could pull the project out of debt. 'From the start, the construction expenditure was too big,' said Mr Ki Darmaningtyas, a transport analyst from the Strategic Transportation Initiative (Instran), a non-profit focused on transportation development. He added that ticket revenue was not enough to cover all the operational costs of the service. 'Perhaps ticket revenue only covers electricity and basic maintenance – maybe not even that. Let alone staff salaries and other expenses.' Like it or not, he said, the state ultimately has to shoulder the burden. He explained that Danantara's funds come from the national budget, as well as from loans and bond issuances used to finance projects and manage debts. 'Where will the money come from? Debt again. It is just digging a hole to fill another – 'gali lubang, tutup lubang',' he told The Straits Times, using an Indonesian proverb. Not cheap, not seamless Whoosh fares range from 200,000 to 600,000 rupiah (S$16 to S$47) depending on class and time – a stretch for daily commuters, students and lower-income workers. While the onboard experience is polished, first- and last-mile connectivity remain a work in progress. From Padalarang station, the third of four stations, passengers bound for Bandung's city centre have to transfer to a slower feeder train that takes another 20 minutes. Others scramble for directions or try to book a taxi or Grab ride. The seamlessness ends there. While Jakarta's Halim station offers food outlets from Starbucks and Texas Chicken to Subway, the selection at Padalarang can be counted on one hand. While the onboard experience is polished, first- and last-mile connectivity remain a work in progress. ST PHOTO: ARLINA ARSHAD Dr Muhammad Zulfikar Rakhmat, a researcher at the Centre of Economic and Law Studies, said weak feeder links and high fares limit Whoosh's appeal. 'High fares after the promotional period and weak feeder transport links, especially at Karawang and Padalarang stations, make it less attractive for daily commuters,' he told ST. Still, he believed Danantara's restructuring could ease pressure on KAI and its partners 'if implemented effectively', with sustainable strategies such as boosting ridership, improving feeder links, and diversifying revenue through advertising, retail leases and park-and-ride facilities. Eyeing future Surabaya extension Despite the deep losses, the government has pressed on with plans to extend Whoosh to Surabaya in East Java. On July 1, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono called the Jakarta-Surabaya high-speed rail 'a game changer' and one of President Prabowo Subianto's key priorities. 'If the Jakarta-Surabaya HSR can be realised... it will not only improve intra-regional connectivity, but also boost the local economy,' he was quoted as saying by The Jakarta Post. The Jakarta-Surabaya high-speed rail extension has been included in Indonesia's National Railway Master Plan, but progress has stalled due to incomplete regulations, and chiefly the absence of a supporting presidential regulation. Once the regulation is issued, joint feasibility studies with China are expected to begin. A pre-feasibility study is currently being prepared, exploring three possible routes: southern, central and northern Java. The government aims to cut travel time from Jakarta to Surabaya from 10 hours to just 3½ hours, with fares expected to be more affordable than for the existing Jakarta-Bandung high-speed line. Mr Pardede acknowledged that the route would connect Indonesia's two largest cities and could see stronger demand. But he cautioned: 'The extension of the line to Surabaya must certainly begin with a detailed feasibility study that comprehensively considers costs and benefits.' And he added: 'The government should not use the state budget to build this high-speed rail so as not to increase the fiscal burden.' Dr Zulfikar also warned that expanding the line could bring further costs, rising debt, and underutilised infrastructure. Mr Darmaningtyas was more blunt. 'The extension will be a burden on the state for life,' he said. 'Please do not go ahead with the plan. If the government does not want to be burdened forever, it must cancel the expansion.' Political legacy Mr Darmaningtyas said the high-speed rail was more of a political trophy than a transport necessity. He noted that regular trains between Jakarta and Surabaya were rarely full outside weekends and holidays. 'So, who would take the high-speed train?' he said. He added that existing toll roads and train lines connecting Bandung to Surabaya already met travel needs, questioning the urgency of a new link. Mr Darmaningtyas also flagged conflicting policies. 'The government built two new toll roads between Jakarta and Bandung even as it promoted rail travel. That just encourages people to drive instead,' he said. To him, Whoosh was less about serving commuters and more about cementing a political legacy for Indonesia's leaders. 'They just want to prove something. They never think about sustainability,' he said. 'When Jokowi was president, what mattered was that he built a high-speed train. Whether it burdens the country or not is someone else's problem – the next president's problem.' Bandung-based make-up artist Lenny, 43, said that while she loved her fast rides, the project felt half-finished. 'Transport is costly, I get that. But if stations were in the Jakarta and Bandung city centres, more people would use the train,' she said. 'As usual, we aim for the stars, but get lost in the sky. Strong ambition, poor execution.'
Business Times
6 hours ago
- Business Times
Brunei tweaks Bridgewater bet to a lucrative 20% stake in firm
[NEW YORK] Brunei's sovereign wealth fund pulled money from an investment in a Bridgewater Associates strategy to buy an almost 20% stake in the hedge fund manager's holding company, a move that has helped spur higher gains for other institutional investors. The Brunei Investment Agency is the latest longstanding client to buy a piece of the firm founded by Ray Dalio, which managed US$92 billion as at Dec 31. It's unclear which Bridgewater vehicle Brunei pulled money from, although the sovereign wealth fund remains an investor in all of the firm's funds, according to a source familiar with the money manager. Bridgewater's flagship Pure Alpha II, like many macro funds, has improved its performance in the past few years, but over a longer period, returns have been uneven. That means a long-term investment in the firm itself can be more lucrative than betting on its most popular product. Bridgewater has been selling stakes to institutions for more than a decade. The Teacher Retirement System of Texas, the Ontario Municipal Employees Retirement System, Singapore's sovereign wealth fund and the International Monetary Fund have all purchased a piece of the Westport, Connecticut-based firm. The Texas teachers pension fund invested US$250 million in Bridgewater's holding company in 2012 and reported making an annualised return of 8.7 per cent to Mar 31. An investor in Pure Alpha would have gained an annualised 2 per cent from the beginning of 2012 to June 2025. Last year, the fund climbed 11.3 per cent and it's up 17 per cent in the first half of this year. Dalio recently completed his exit from the company, selling the final slug of his remaining shares in the money manager he started 50 years ago, and resigning from the board. BLOOMBERG
Business Times
6 hours ago
- Business Times
Airbnb touts good talks with New York City mayor candidates on rental ban
[CHICAGO] After pouring more than US$1 million into New York's mayoral race, Airbnb said that it's having 'really good conversations' with candidates about restrictions that wiped more than 80 per cent of its listings in the city. Chief business officer Dave Stephenson said that he is optimistic and that politicians are starting to realise the rules have not been good for residents, who cannot supplement their incomes with short-term rentals. It has also sent hotel prices in the city soaring, he said. Airbnb plans to spend US$10 million on getting homesharing-friendly politicians into New York City and state offices just this year. The company is pushing back on New York City's Local Law 18 regulation, which outlawed most of its short-term rental listings when it came into effect in 2023. 'Conversations are happening there, top-level conversations with the mayor and with mayoral candidates,' Stephenson said on Thursday (Jul 31). 'We are having really good conversations about the importance of supporting the communities and the economics in those communities and I think that they are realising that the law is not serving the community well.' New York politicians have argued short-term rentals have exacerbated the city's housing affordability crisis. The measure, which wiped out more than 18,000 of Airbnb's listings in the city within a year of coming into force, was strongly supported by the powerful hospitality workers union, the Hotel and Gaming Trades Council. Stephenson, who was in Chicago to mark Airbnb's first global live music partnership with Lollapalooza festivals around the world, blamed the restrictions for rising hotel prices in New York. The average cost of a room in the city surged to a record US$439.71 in December, according to CoStar data. He also said smaller neighbourhoods are missing out on economic activity. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'There are so many boroughs that are struggling now, because you can't stay in Brooklyn, you can't stay in Queens, you can't stay in Staten Island – there are no hotels,' he said. 'People are not able to earn income from their homes, so they're actually seeing the negative side of this.' The company's super-PAC spent over US$1 million in the Democratic primary, targeting three candidates who did not support rolling back the short-term rental ban during the race: Zohran Mamdani, Scott Stringer and Brad Lander, Politico reported at the time. In a separate statement, Airbnb said it's 'committed to supporting candidates who champion common-sense solutions to the affordability crisis, including empowering everyday New Yorkers, especially one- and two-family homeowners, to share their own homes as a way to afford their mortgages'. New York City Mayor Eric Adams did not respond to a request for comment. Remaining candidates, Mamdani, Andrew Cuomo and Curtis Sliwa, did not respond to requests for comment. Jim Walden, who is also running, declined to comment. Stephenson did not specify which candidates the company was speaking to. Advocates for short-term rentals are trying to revise the law ahead of next summer, when New York will be one of several North American host cities for the 2026 FifaWorld Cup, an event franchise Airbnb has also partnered with. In March, the chambers of commerce for New York City's five boroughs sent a joint letter to the city council saying the regulations have had 'devastating consequences for small businesses'. A bill relaxing some of New York's stringent ban has been introduced in the city council, but it's a long way from viability, the bill has only a few sponsors and has yet to receive a hearing. Cities across the US are grappling with an affordable housing crisis, and several have turned to the regulation of short-term rentals after concerns that real estate speculators are entering the market, purchasing housing and then renting it on platforms such as Airbnb and Vrbo. Chicago limits how many units within an apartment building can be used for short-term rentals and requires city approval and registration. While the city is weighing an ordinance that would allow council members to ban short-term rentals within their wards, the proposal has stalled. 'We found very specifically in Chicago that the actual residents of many of these neighbourhoods, we have civil rights people in the neighbourhoods, are actually advocating to keep Airbnbs because it's an important way for people to earn income,' he said. 'I'm really happy with where we are at in Chicago, because I think the neighbourhoods are actually starting to see the benefit and are speaking up.' BLOOMBERG
