Reward Bookings - Who Pays?

9 replies

canook

Member since 17 Aug 2014

Total posts 18

Reward Bookings - Who Pays?

canook

Member since 17 Aug 2014

Total posts 18

I'm curious - Recently I made a Qantas FF booking for fights on Cathay (4 flights) and American airlines (2 flights) on the same ticket.   My flight out of Sydney was delayed, causing me to miss the second leg of my Cathay booking (1 flight) as well as my American booking (1 flight).  

 Cathay re-routed me on to another of their flights, but then put me on an Air Canada flight instead of the American flight.  The Air Canada flight was significantly longer than what the American flight would have been.

My original booking was with One World airlines, but Air Canada is not part of the one world alliance.  Did Cathay have to pay for that Air Canada flight?  How does a situation like that work?   Or did Qantas since all flights were paid with Qantas points?    What goes on behind the scenes in terms of cost sharing?

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

I think it's Cathay that pays because they stuffed up and your flights are all on the same PNR, they are obligated to take you to your final destination.

canook

Member since 17 Aug 2014

Total posts 18

Interesting.  I'm also assuming they pay hard cash - do the airlines have any sort of reciprocal agreement to handle such instances?

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

I can't imagine it's hard cash. I should think these transactions are recorded in the reservation system that is interfaced with an accounting system, where a back office function is responsible for payment. 

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

Probably through a clearing house of sorts as part of an agreement. I wonder if IATA is involved as an independent facilitator of that clearing house.

Mark77

Member since 06 Sep 2015

Total posts 13

Babushka, curious to know if this is actual knowledge or speculation as you use words like "I think" "I wonder" and "probablyl". My friend who works for an airline says within an airline alliance there is no payment as they track points redeemed between airlines. In this case, there would be some form of payment but Cathay would have factored that in given the airlines have their own valuation of points value.

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

I'm talking about the payment Cathay made to Air Canada. That would have been a payment.

Air Canada's not going to give CX a seat for free.

Mark77

Member since 06 Sep 2015

Total posts 13

Agreed. and Cathay used their discretion to do this not to inconvenience the customer any further than the first missed flight.

kimshep

Qantas - Qantas Frequent Flyer

Member since 11 Oct 2014

Total posts 336

Hi TRB - all payments from Agents (and other member airlines) are made through IATA's BSP - Bank Settlement Program.

An overview of the process is available on IATA's website at:

http://www.iata.org/services/finance/bsp/Pages/how-bsp-works.aspx

The service is provided to all IATA member airlines. BSP has been in operation for many, many years - from the late 1940's, IIRC. Originally devised to handle 'paper' tickets, the pink coupon was always forwarded by member airlines to a central clearing house. Now - in the days of 'electronic' ticketing - done completely online via a secure website portal..

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