Airline Alliance Basics
Airline alliances are strategic partnerships between multiple airlines designed to enhance service quality and operational efficiency by coordinating schedules, sharing resources, and providing seamless travel experiences across a global network. These alliances offer numerous benefits to passengers, including access to an extensive range of destinations, streamlined connections, and reciprocal frequent flyer programs. For credit card users, airline alliances provide additional advantages such as earning and redeeming miles across partner airlines, enjoying elite status perks like priority boarding and lounge access, and gaining travel rewards and bonuses that can significantly enhance their travel experiences.
Major Alliances
Star Alliance
Founding Year: 1997
HQ: Frankfurt, DE
Member Airlines: 26
One World
Founding Year: 1999
HQ: New York, USA
Member Airlines: 13
Sky Team
Founding Year: 2000
HQ: Amsterdam, NL
Member Airlines: 19
Why is all this important?
Knowledge of Airline Alliances and member airlines will help you maximize the most out of your credit card rewards by providing you with the flexibility of choosing a specific airline or an alliance to route your journey with. Some key benefits include:
- Common rewards currency amongst airlines: Example – British Airways and Qatar Airways both use Avios as their reward currency. They are also part of the One World airline alliance. You can therefore use Avios to book flights on both British Airways and Qatar Airways via their hubs out of London Heathrow and Doha Hamad airport respectively.
- Status benefits: Airlines within the same alliance typically accord status and access rights to partner airlines. Example – An Air Canada Aeroplan 75K Elite member has the Star Alliance Gold Status that gives the member access rights to the Lufthansa Business Lounges at Frankfurt Airport.
- Flexibility in transferring rewards: Flexible travel rewards companies such as Amex Membership Rewards enable you to plan your journey via multiple Airline Alliances by transferring your hard earned membership reward points to multiple alliances, thereby diversifying your options.
The Points Guru Airline Alliance Masterclass (Upcoming)
Stay tuned for our Points Guru Airline Alliance Masterclass that helps you navigate:
- Understand the concept and structure of airline alliances.
- Identify the major airline alliances and their member airlines.
- Recognize the benefits of airline alliances for frequent flyers.
- Utilize alliances to maximize flight rewards and travel benefits.
- Navigate booking tools and resources associated with airline alliances.
What are my points worth? (Upcoming)
When redeeming points for reward hotels, flights, and experiences, it is absolutely necessary to understand the value of each point redemption. A frequently used metric in this situation is the CPP (Cent Per Point), which essentially indicates how many cents is one reward point typically worth. As a benchmark, a 1% Cash Back Credit Card has a 1 Cent Per Point value when equated in rewards.
Too confusing? Don’t fret. Use our Cent Per Point Calculator to identify the overall point value of your redemption so that your decision to redeem your hard earned points is well informed and suits your necessity.
Alliances are everywhere
Having a basic understanding of airline alliances can take you a long way in elevating your travel game. But that isn’t all. Alliances are everywhere. Hotels and Credit Cards have alliances too! The best part is, your points from one credit card are transferable to various hotels partners and airline partners. They’re also transferable from hotel partners to airline partners. Therefore, knowledge of these alliances and point values can put you in the elite league of travellers who maximize their rewards as best as they can!
We are still developing our content on Hotel Alliances and Credit Cards – so stay tuned!
The Points Guru by Ameya 