Posts: 365
Joined: Fri May 12, 2000 3:03 pm

FF Miles Question...

Thu Jun 20, 2002 7:04 am

I've always wondered how airlines benefit from Frequent Flyer Partnerships with eachother.

For example: If I earn a bunch of AAdvantage Miles on American, then use 25,000 of them to fly to Juneau on Alaska Airlines (as I'm doing this summer), obviously, i'm happy because I got a free flight on an expensive route! But, which airline is better off? Does American pay something to Alaska Airlines for my seat? Or am I really freeloading on Alaska, and benefiting American by not using my miles to take a revenue seat on AA?

I happen to like Alaska Airlines more than American, so I kinda hope they get something out of the deal. Obviously there is a reciprocal deal, and some other passenger may be using Alaksa miles to fly AA, but for me personaly, i'm wondering exactly what I'm taking and giving to the two airlines.

Curious, and hope I make sense!
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American 767
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RE: FF Miles Question...

Thu Jun 20, 2002 8:17 am

I don't think that you personally are giving anything to Alaska because all the miles that you had came with tickets paid at AA. So in the first turn, AA is being "paid" by you, the customer. Filling a seat on Alaska doesn't mean Alaska is direclty making more money by increasing the load factor, like you say American must be paying something to Alaska. It's like paying a rent when you rent an apartment. So yes, Alaska is making money but not directly by all passengers, some passengers directly buy tickets on Alaska, others like you are flying Alaska though AA's AAdvantage program. And the same works vice-versa. The reason airlines work out deals like that is to allow their own customers to get Frequent Flyer miles on destinations not served by the airline itself. That is called codeshare.
I don't know if this answers your question but I think that's how the airlines work with each other.

Ben Soriano
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Ben Soriano
Posts: 122
Joined: Sat Feb 16, 2002 11:46 am

RE: FF Miles Question...

Thu Jun 20, 2002 1:21 pm

Any time you use your miles to fly on another carrier they are getting paid for that seat by the carrier you used to get the ticket. The two carriers have agreed on a contract price for each mileage seat of a given type i.e. Coach Domestic, First Class Hawaii, etc.

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Joined: Sun Mar 19, 2000 1:45 pm

RE: FF Miles Question...

Thu Jun 20, 2002 1:24 pm

It makes their own progams more attractive.