planemannyc
Topic Author
Posts: 939
Joined: Wed Aug 06, 2003 12:54 am

How Do FF Miles Transactions Btwn Airlines Work?

Fri Mar 25, 2011 2:13 am

I just bought a R/T ticket on TK using my CO miles. I know they are both *A members, and so they honor miles from the other airline. But how does it work? Did CO "pay" TK for my seats on those TK flights? Also, is it just courtesy reciprocity? I mean, there may be more people holding CO and UA miles (I am not sure this is the case, but given they had FF plans before some of the other A* members, it may be), does that not mean that it is likely CO and UA will be requesting more seats on other member airlines flights then other members asking for CO and UA seats? Also, I am sure there are airlines like SQ where FF members of other airlines requests seats, while SQ FF members may not request in the same numbers of other *A members. How does it balance out? Are there monetary transactions involved between airlines?

Remaining curious,

Wasim / Planemannyc

[Edited 2011-03-24 19:16:27]

[Edited 2011-03-24 19:16:58]
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: How Do FF Miles Transactions Btwn Airlines Wor

Fri Mar 25, 2011 5:44 am

In simple terms, there is a agreed valuation of miles. CO in this case would pay TK to essentially buy your set.

With airlines having many thousands of transactions between them, much of these owed sums gets cancelled out at the end, however if a carrier burns more miles than it earns for instance payment is made for the difference.

Remember nothing is for free, and no airline is going to give up a potential revenue making seat without some compensation.
From the desert to the sea, to all of Southern California
 
Yflyer
Posts: 1189
Joined: Sat Feb 17, 2007 4:05 am

RE: How Do FF Miles Transactions Btwn Airlines Wor

Fri Mar 25, 2011 5:31 pm

Quoting LAXintl (Reply 1):
In simple terms, there is a agreed valuation of miles.

I assume earning miles on a partner airline works similarly? That is, if I fly somewhere on AS, but choose to earn miles in my DL Skymiles account, does Alaska pay Delta something for those miles? And I assume, like you said above, that once all the accounting is said and done this debt could potentially be canceled out by someone on a DL flight choosing to earn miles on AS, or a DL customer using their Skymiles to book an AS flight.
 
Viscount724
Posts: 18974
Joined: Thu Oct 12, 2006 7:32 pm

RE: How Do FF Miles Transactions Btwn Airlines Wor

Fri Mar 25, 2011 8:55 pm

Selling frequent flyer miles to other carriers, hotel chains, credit card companies etc. generates a lot of revenue.
 
odysseus9001
Posts: 76
Joined: Sat Oct 04, 2008 6:02 pm

RE: How Do FF Miles Transactions Btwn Airlines Work?

Sat Mar 26, 2011 2:36 pm

This is a good question. I've always wondered about this myself.

Over in FlyerTalk and in published press articles, it's sometimes asserted that some airlines (like United) make it difficult to book available award seats on other airlines in their alliance. For example, the Washington Times article below states that United filters Star Alliance Award Seats:

http://www.washingtontimes.com/news/...irlines-curb-award-tickets/?page=2

Is this because they would have to compensate Lufthansa (for example) if they provided an award seat on a Lufthansa flight? Perhaps the award transactions generally do not cancel each other out, and United ends up paying Lufthansa money without partner award seat flltering?

regards,

John
 
planemannyc
Topic Author
Posts: 939
Joined: Wed Aug 06, 2003 12:54 am

RE: How Do FF Miles Transactions Btwn Airlines Work?

Sat Mar 26, 2011 7:08 pm

Quoting odysseus9001 (Reply 4):
Over in FlyerTalk and in published press articles, it's sometimes asserted that some airlines (like United) make it difficult to book available award seats on other airlines in their alliance. For example, the Washington Times article below states that United filters Star Alliance Award Seats:

http://www.washingtontimes.com/news/...irlines-curb-award-tickets/?page=2

Is this because they would have to compensate Lufthansa (for example) if they provided an award seat on a Lufthansa flight? Perhaps the award transactions generally do not cancel each other out, and United ends up paying Lufthansa money without partner award seat flltering?

Very interesting. Thanks for the link.

Now, could that be that just like passengers having to pay more if they book later (typically that's the pattern), do airlines end up paying more to other airlines (even partner airlines) closer to the date of departure, as noted in the article:

Another solution would be to book months in advance, before United applies the filters.

and therefore, UA is unwilling to provide seats to it's FF members when there are seats being made available by its partners?

Still curious,

Wasim / Planemannyc

Who is online

Users browsing this forum: Starlionblue and 9 guests