How to Leverage Seldom-Used Star Alliance Upgrades to Save Up to 61% to Europe

August 2013
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Business and leisure travelers can grow their Business Class Upgrade-Strategy Quiver just by knowing special routes and fares that play nicely with “Alliance Upgrades”

Just as there are three different upgrade programs with airlines on routes to Asia (see part one of this story in the July issue), so there is a trio of them to Europe. Trying to figure out when one works best, however, can be a full-time job; so here’s the blueprint to the least-considered upgrade option, as well as a concise summary of when it’s worth using instead of the other better-known two.

A Recap of the Three Basic Mileage Upgrades

  • Upgrade Option #1: An airline’s own upgrade from lower economy fares—the upgrade most people go for. With United’s loyalty program it requires a cash surcharge (a “co-pay”). FCF calls this the Discount Fare Upgrade (DFU).
  • Upgrade Option #2: An airline’s own upgrade from non-discounted fares (usually B and Y), and usually referred to as a full-fare upgrade. This option is not often used by leisure travelers these days because fares have risen steadily over the years, leaving this option primarily for business travelers. United does not require a cash surcharge on these fares. This could be referred to as a Full Fare Upgrade (FFU).
  • Upgrade Option #3: An airline’s loyalty program partner upgrade, which is just that: An upgrade on a partner’s flights. Among United’s partners, that could be Scandinavian Airlines or US Airways. This upgrade is rarely used because it generally means buying a B or Y fare, which are generally not worthwhile unless you know the airlines and routes that offer unusually low upgradeable fares. This option doesn’t require a cash surcharge and could be referred to as a Full Fare Alliance Upgrade (FFAU).

[aside headline="B Fare Bonus: Flexibility & Hedge-Ability" alignment="alignright" width="half" headline_size="default"]Singapore’s fares carry a mere $100 refund fee; Air New Zealand’s is $300, while Scandinavian’s and US Airways’ are non-refundable. There’s no change fee on Air New Zealand (just the fare difference as the result of the change), a $100 change fee on Singapore, and a $300 one on Scandinavian and US Airways. In other words, with these low change fees, you are NOT “locked in”, so you can easily “upgrade” (e.g., improve) your booking downstream, should a better upgrade opportunity reveal itself because there is little cost to make the change.[/aside]

This third option is the focus of today’s intelligence.

The Nucleus of this Special Opportunity: Knowing the Hidden Routes and Airlines That Offer Unusually Low B Fares

Air New Zealand, Scandinavian, Singapore, and US Airways offer some of the lowest applicable Star Alliance Upgrade Fares (B and Y). For example, on the Philadelphia-Brussels route US Airways’ B fare is only $2,143 r/t (all in, and only requires 40,000 miles r/t for the upgrade via its partner Air Canada), while the lowest Business Class fare is $5,545, a savings of $3,402 (61%). See the chart below for more sample savings.

Sample Routes That Net Savings Up to 61% With Star Alliance Upgrades*

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Where the Low Mileage Upgrade Awards Are

You might think that all Star Alliance airlines would charge the same for this type of upgrade, right? That’s not often the case. For example, US Airways charges 60,000 miles r/t to Europe, Singapore charges up to 80,000, while Air Canada only charges 40,000 miles r/t.

Don’t Have Air Canada Miles? No Problem.
Air Canada is a point-transfer partner with Amex’s Membership Rewards and Starwood’s Starpoints. Amex allows you to buy up to 500,000 MR points per year. You can also buy up to 50% of the miles required from Air Canada, if you already have at least 50% in your account.

[aside headline="Take Special Notice" alignment="alignright" width="half" headline_size="default"]

You need NOT be traveling to Europe—or be a United MileagePlus program enthusiast—to reap huge cash discounts from employing this (advanced and little-known) upgrade opportunity, for two reasons:

Special Notice #1: If you are not traveling to Europe, you can benefit from FCF’s analysis specifically here: Because many of the SAME principles apply to non-European destinations. (e.g. Asia, South America, Inter-continental, et al.)

Special Notice #2: If you are not a United or other Star Alliance loyalty program enthusiast, it often doesn’t matter: Because ANYONE can buy miles directly from the (many different) airlines (or multi-currency point programs) which can be used—in combination with this deep-discount methodology—to destinations the world over in many cases.[/aside]

More Reasons to Like Star Alliance Upgrades

No Upgrade Cash Surcharges: Star Alliance upgrades do not have a co-pay, which on some airlines (like United) can be as high as $1,100.

Lower Change Fees: Many low economy fares have high change fees, whereas the cost of changing ranges from nothing to $100 (but $300 on Scandinavian and US Airways) with these types of fares. This is great for business travelers, mind-changers, and hedgers—which describes many of you (and me as well).

More Partner Schedule Opportunities: The Star Alliance Upgrade provides access to seven+ airlines to Europe vs. its own upgrade program (access to one).

Short-Notice Travel: Star Alliance B fares are great for the business or last-minute leisure traveler, who is already paying a higher fare.

Earn Miles: B fares earn 100% base miles on both United and US Airways, whereas free award travel does not. (Scandinavian flights earn 175% base miles on United and 150% on US Airways.)

Elite-Status Friendly: B fares also earn 100% EQMs (Elite Qualifying Miles) on both United and US Airways, whereas free award travel does not. (Scandinavian flights earn 150% PQMs on United.)

[["B Fare","Airline","Route","Normal Business Class Fare","Airline","Savings"],["$1,501","Singapore","New York - Frankfurt","$2,944","Singapore","<span style=\"color: #ff0000;\">$1,443 \/ 49%<\/span>"],["$1,849","Scandinavian","Chicago - Copenhagen","$3,955","Scandinavian","<span style=\"color: #ff0000;\">$2,106 \/ 53%<\/span>"],["$1,994","US Airways","Atlanta - Paris","$4,911","Air France","<span style=\"color: #ff0000;\">$2,917 \/ 59%<\/span>"],["$2,059","Air New Zealand","Los Angeles - London","$4,068","Air New Zealand","<span style=\"color: #ff0000;\">$2,009 \/ 49%<\/span>"],["$2,143","US Airways","Philadelphia - Brussels","$5,545","US Airways","<span style=\"color: #ff0000;\">$3,402 \/ 61%<\/span>"],["$2,180","Scandinavian","Washington, DC - Stockholm","$4,797","Lufthansa","<span style=\"color: #ff0000;\">$2,617 \/ 55%<\/span>"],["$2,387","Scandinavian","San Francisco - Stockholm","$4,687","KLM","<span style=\"color: #ff0000;\">$2,300 \/ 49%<\/span>"]]
<small><em>* Using 40,000 Air Canada miles (US Airways charges 60,000); other Star Alliance airlines charge between 50,000 and 80,000 miles. ** Fares include average taxes and fees for the route. *** Upgradable Fares Codes: Usually B or Y, with these exceptions: Air Canada (O), Air New Zealand (E, U, O), Scandinavian (S), and Singapore Airlines (S).</em></small>