A Guide to the Winners and Losers in Star Alliance’s and SkyTeam’s Membership Shift
When a major airline changes alliances, shockwaves are felt throughout the industry, with loyalty programs affected most profoundly. Let’s examine what we can expect when Continental’s shift from SkyTeam to the Star Alliance takes effect on Oct. 27.What OnePass Members Gain
International First Class: Though it’s almost hard to believe, U.S. members in the mileage programs of SkyTeam partners have no access to international First Class—even on airlines offering that cabin. With Continental moving to Star, that all changes. OnePass members will now have First Class award access on All Nippon, Lufthansa, SWISS, and United, to name a few. Often the front cabin can cost just a few miles more than a Business Class award. Example: Continental’s Business Class saver award from the U.S. to Japan is 125,000. Add 10,000 miles and you can fly in All Nippon’s new First Class suite—a night and day difference in comfort and service, and otherwise up to quadruple the cost if you paid for the seat in cash.More Airline Options: The Star Alliance has 24 members to SkyTeam’s 13. The difference multiplies seat award availability and options for earning miles and building elite status.
Upgraded Ground Service: Continental OnePass Gold and Platinum elites will join Star Alliance’s Gold, its top tier. SkyTeam’s top status, Elite Plus, accepted OnePass Platinums, but OnePass Gold-level members had to settle for SkyTeam’s lesser Silver tier. Star Alliance Gold members are welcomed in 805 lounges worldwide (compared to SkyTeam’s 440) when traveling on international itineraries, regardless of the class of service booked. Other benefits include up to three bags checked free, priority check-in, and early boarding.
Lower Mileage-Award Costs on Some Routes: Business Class saver awards to some destinations from U.S. gateways will cost less: 30,000 fewer miles for travel to Tahiti; 15,000 fewer miles to Australia and New Zealand. Anytime awards are also less expensive on some routes: Central and Southern Africa cost 20,000 fewer miles; North Africa, 30,000 fewer miles.
Other High Points of the new OnePass program include: No co-pay is required for upgrade awards from B fares. No Saturday stay is required for award travel. Same-day change fees are waived for Platinum Elites. Members earn 100% EQMs or EQPs on discounted fares, regardless of where they’re purchased. Elite bonuses are based on a 500-mile perflight minimum instead of the actual miles flown.
What OnePass Members Lose
Reduction in mileage earning power: Starting Jan. 1, International Business (C, J, and D fares) and domestic First Class (F) tickets earn 125% of miles flown rather 150%. However, most discounted Business and First Class tickets are booked as A fares, which earn 100% (unchanged).Reduced Elite Qualification Points: Also on Jan. 1, EQPs earnings are reduced for fare codes F, C, J, D, Z, Y, and B, from two elite points to one-and-a-half (EQMs are unchanged at 150%).
New Benefits for Members of Other Star Partners’ Programs
Seldom does a seismic change to an airline alliance bring only good news, but members of existing Star Alliance partners’ programs, such as United’s Mileage Plus and US Airways’ Dividend Miles, will be hard-pressed to find a downside to Continental’s inclusion.Star Alliance Fares Plummet: Continental is known to offer low holiday Business Class fares to Europe, and sometimes Asia, which are not always matched by other airlines. This year, for instance, Continental’s Thanksgiving fare from New York to London starts at about $1,000 (plus taxes), while other Star Alliance members’ fares are at about $1,900. Now members of Star Alliance partners’ programs can take advantage of Continental’s lower Business Class fares while still earning miles in their own programs.
More and Better Business Class Seats: Continental starts rolling out its new lie-flat Business Class seats on B777s in November, expanding Star members’ comfort options. Even its current B777 Business Class seat, at 22-inches wide with a 170-degree recline, isn’t bad.
Best First Class Round-theWorld Deal: The Amex Membership Rewards transfer option gives access to Continental’s First Class Round-theWorld award for only 280,000 miles, 120,000 fewer miles than United and US Airways (400,000).
SkyTeam Takes a Hit
While Star Alliance partners celebrate Continental’s arrival, SkyTeam, with Delta/Northwest as its lone remaining power player, has little to cheer about. One less alliance member means fewer routes and reduced mileage and award availability. And access to Continental’s low holiday Business Class fares while earning SkyMiles will soon be but a memory.[aside headline="Star Alliance Status Report" alignment="alignright" width="half" headline_size="default"]
US Airways’ Dividend Miles is still the best saverand anytime-redemption program among the three U.S. majors in the Star Alliance. On many routes, Dividend Miles award levels can be much lower than those of the competition. For example, an offpeak (Jan. 15-Feb. 28) Business Class saver award to Europe is only 60,000 miles on US Airways vs. 105,000 on United and Continental.
Transferring Starwood Starpoints: US Airways has the best transfer rate at one-to-one. United and Continental suffer with a two-to-one transfer rate.
New Seat Update: US Airways new Envoy Suite (Business Class) with lie-flat seats will debut in its A330-200 aircraft in December. United is scheduled to have all of its B747s outfitted with new lie-flat seats in Business Class, also in December. The lie-flat seat upgrade in its B767 fleet is already completed.
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American Express Reward Transfer Option: Both Continental and Delta are transfer partners with Amex Rewards, which gave SkyTeam travelers the option to choose the better program to a specific region. The difference in saver awards wasn’t significant, but the cost of the two carriers’ anytime awards sometimes varied by as much as 100,000 miles: To Europe, a 350,000-mile anytime award on Delta would go for 250,000 on Continental.
Oneworld/American
The jury is still out here. American may tinker with its AAdvantage program to keep up with United, its biggest competitor, which will now have more partners and may attract more travelers that waver between the two.As Continental Checks Out
Key Dates to Remember:Oct. 24: Last day for OnePass members to receive SkyTeam benefits.
Oct. 25 and 26: Limbo for OnePass members. Save copies of all travel documents to match against your OnePass statement.
Oct. 27: Star Alliance membership takes effect
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