The question is: different airlines in the same alliances have different policies on their high-level status membership. Some only require 20,000 miles to have prioritized services and lounge access, but the other can ask customers to fly 70,000 miles for the same privileges. To me, the airlines that are more lenient on giving out gold memberships are taking advantages from the others because the gold memberships from all the airlines are treated the same in the alliance. Is there a committee to review the policies or is there any cost (e.g. annual fee) to the airlines for granting a gold membership?
Not a nerdy question at all. It's great that you've put some thought into it.
Each airline's FF programme is catered for its local market. Therefore the threshold for elite status is dependent on the market conditions of the airlines home base.
So to use Aegean as an example. The primary focus of Aegean is Greek domestic flights and intra-European flights. As such it was not unreasonable for Gold status with Miles&Bonus to require only 20,000 miles (someone correct me if I'm wrong). But it is expected that certain safeguards are built in to make sure the opportunities for "arbitrage" is minimised.
In this case Aegean didn't build in adequate safeguards and their programme got abused so much so that they had to change. I'm not sure if there is a committee but I'm certain anomalies are discussed and partner airlines are compelled to make changes to minimise abuse.
That being said, the principles of competition remains in place, if for anything, to keep competition regulators at bay. I like to think of it as competitive independent tax policies adopted by states within a federation/commonwealth.
To some extent alliances do this "matching the mismatched" with a seperate rating system. Hence in One World you are rated ruby, emerald and... spandex, or somethin else i dont recall. Now while i have platinum in Qantas, I have an american friend who is platinum with AA. His Platinum is Ruby in One Wold, Mine is a grade higher at emerald.
I am sure this isn't a perfect system, but it works.when flying AA and they see i am emerald, i seem to get exceptional treatment!
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OK this is a nerdy question: how do alliances work?
DBPZ
DBPZ
Virgin Australia - Velocity Rewards
Member since 26 Feb 2016
Total posts 38
OK this is a nerdy question: how do alliances work?
DBPZ
DBPZ
Virgin Australia - Velocity Rewards
Member since 26 Feb 2016
Total posts 38
The question is: different airlines in the same alliances have different policies on their high-level status membership. Some only require 20,000 miles to have prioritized services and lounge access, but the other can ask customers to fly 70,000 miles for the same privileges. To me, the airlines that are more lenient on giving out gold memberships are taking advantages from the others because the gold memberships from all the airlines are treated the same in the alliance. Is there a committee to review the policies or is there any cost (e.g. annual fee) to the airlines for granting a gold membership?
TheRealBabushka
TheRealBabushka
Member since 21 Apr 2012
Total posts 2,058
Not a nerdy question at all. It's great that you've put some thought into it.
Each airline's FF programme is catered for its local market. Therefore the threshold for elite status is dependent on the market conditions of the airlines home base.
So to use Aegean as an example. The primary focus of Aegean is Greek domestic flights and intra-European flights. As such it was not unreasonable for Gold status with Miles&Bonus to require only 20,000 miles (someone correct me if I'm wrong). But it is expected that certain safeguards are built in to make sure the opportunities for "arbitrage" is minimised.
In this case Aegean didn't build in adequate safeguards and their programme got abused so much so that they had to change. I'm not sure if there is a committee but I'm certain anomalies are discussed and partner airlines are compelled to make changes to minimise abuse.
That being said, the principles of competition remains in place, if for anything, to keep competition regulators at bay. I like to think of it as competitive independent tax policies adopted by states within a federation/commonwealth.
anthony watts
anthony watts
Qantas - Qantas Frequent Flyer
Member since 29 Mar 2015
Total posts 15
To some extent alliances do this "matching the mismatched" with a seperate rating system. Hence in One World you are rated ruby, emerald and... spandex, or somethin else i dont recall. Now while i have platinum in Qantas, I have an american friend who is platinum with AA. His Platinum is Ruby in One Wold, Mine is a grade higher at emerald.
I am sure this isn't a perfect system, but it works.when flying AA and they see i am emerald, i seem to get exceptional treatment!