The shortcomings of airline alliances, and Star Alliance in particular

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In comments to the earlier post on United’s new rules limiting access to Economy Plus seating, Cole writes:

It would be great if the Star Alliance could take a break from expansion long enough to improve its cross-airline benefits. SkyTeam has recently (or, recently to me, anyway) made some major steps in that area: cross-airline club access is much smoother than it once was and accessing a partner club does not require a ticket on that partner airline, and all SkyTeam elites get access to preferred seating at the front of the plane (no more legroom, but faster getting off) and in exit rows on every Sky airline. It’s only a shame they don’t really have any airlines worth getting excited about.

Hear, hear.

(Except for the fact that Star Alliance does need to find itself some coverage in South America, now that Varig has become a shadow of its former self.)

I have a number of quibbles with airline alliances. While they offer convenience and single-ticket travel across a range of airlines, they aren’t yet a perfectly well-oiled machine, from the consumer’s point of view.

- As Cole says, benefits aren’t clear across partners. Can you sit in exit rows, or not? Can you use the lounge, or not? Priority baggage handling? Etc.

- You need a Ph.D. in Milesology to figure out how many miles you’ll actually earn in your “home” program. Buy a ticket that involves SAS, ANA, and Lufthansa, and you might only earn 25%, 70%, and 50%, respectively, of the miles flown if you credit a United Mileage Plus account. Ridiculous!

- Alliances are potentially monopolistic. (SkyTeam has already been investigated for price-fixing.) With multiple companies selling the same itinerary, competition concerns are appropriate.

Now, on top of it all, Gary Leff points to another problem: Fluctuating redemption restrictions. Some alliance members already seem to discriminate against some partners. Try inquiring about award ticket availabilty using Lufthansa’s miles. Then try the same award — same dates, flights, class, etc. — using US Airways miles. Odds are that the availability differs.

Now United is putting the kibosh on business class awards on Singapore Airlines, long considered one of the best (and most luxurious) carriers. Now, under the new rules, if you’re trying to book seats in business class, you can’t book two flights in a row on Singapore. Let’s say you fly over the Pacific in business class on Singapore, and you want to another destination in Asia, also on Singapore. That connecting flight has to be in coach. Even though you’re “paying” the full business rate in miles.

You can avoid this by flying two different Star Alliance airlines, but why why why is this sort of gamesmanship necessary?

If the Star Alliance is really worth anything for consumers, then the alliance’s management will clamp down on this sort of intra-alliance discrimination. Don’t hold your breath.

2 Responses to “The shortcomings of airline alliances, and Star Alliance in particular”

  1. Kate says:

    The Star Alliance is neither celestial nor aligned. Take a strong dose of patience and allocate at least 30-60 minutes of phone time if you want to redeem any US airlines’ frequent flier miles for an international flight which requires any or all portions to be provided by a member of the Star Alliance. Since you cannot book these reservations via United or USAirways’ web sites, you must call and speak to an agent, and they will consume many minutes navigating their own and their so-called partners’ reservation systems to find an appropriate routing. They will then have the audacity to charge you a phone booking fee even though you have no other way to conduct this transaction. You will still have to call the partner airline for your seat assignments and meal preferences, so you are again forced into another 20-30 minute call. There’s little evidence that these airline alliances provide any benefit to passengers because they impose these inconveniences and require the customer to interact wiith each individual airline anyhow. If you fuss about the phone booking fee, they will send you a paper voucher for a future reservation which, surprise, you must conduct via the phone! No wonder airlines are the most despised businesses of all.

  2. Upgrade: Travel Better » Blog Archive » Birth of an alliance? JetBlue and AerLingus join forces says:

    […] Alliances are a mixed bag: On the one hand, they offer you a broader range of destinations to book on a single ticket, ostensibly with point-earnings, mutually-recognized status, and a global network of lounges, etc. to boot. But they’re never as smoothly integrated as the marketers claim. (For some more discussion of the downsides of alliances, see here. For some more color on the pros and cons of codeshares more generally, see here.) […]

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