by Libby Peacock

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ON 1 May 1981, American Airlines launched the world’s first mileage-based frequent flier program, AAdvantage. Initial rewards for frequent fliers included First Class upgrades from Economy for 12,000 miles, and 20 percent off a roundtrip ticket for 20,000 miles. Within a few days, United Airlines followed with its own loyalty programme, Mileage Plus. The air miles war had started. Today, there are over 130 airline mileage FFP (Frequent Flyer Programs) worldwide, and a complex web of airline alliances [see box] and partnerships. AAdvantage now boasts 25 participating airlines and 1,500 overall program participants. Today, step out of your home, and you're collecting frequent flier miles already for the most mundane chores, like filling petrol or buying groceries. Here's all you need to know about how airline frequent flyer programs stack up, collecting airline miles and redeeming those slippery points.

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The truth is that mileage accrual these days depends less on the frequency of your business and flights, and more on how much you spend – both on your ticket and other partner services linked to your programme. As one influential magazine recently put it, “the biggest collectors of miles today are not frequent flyers but frequent buyers”. The Economist is right. More than half of all miles are earned on the ground – on credit cards linked to airline programmes, for instance. It’s a mega-bucks industry: in 2004, more than 20 million free tickets were issued globally. To help make sense of it all, here is our guide to airline frequent flyer programmes (FFPs) and global combines.

Earning airline miles

First thing to remember is not every flight will earn you miles. That discounted economy ticket may be easy on the pocket, but the low fare may gather no miles – or a vastly reduced percentage. With Malaysia Airlines’ Enrich, certain discounted Economy fares earn 70 percent of miles. Cathay Pacific frequent fliers earn anything from zero to 50 percent flying discounted Economy. Group tickets may not bring the miles you expect (with Korean Air’s SKYPASS, they only earn you 80 percent of normal Economy miles). With Flying Returns, the joint Air India and Indian Airlines FFP, promotional fares earn 70 percent of normal Economy mileage points.

Some programmes are more generous than others. In March 2006, Virgin Atlantic’s Flying Club implemented some changes, allowing members to earn miles on all flights, including the airline’s lowest Economy fares. It also introduced mileage bonuses for Silver and Gold members. The only flights not qualifying for miles are ones bought with redemption awards in the first place. Fair enough.

Royal Brunei’s FFP, Royal Skies, has two elite categories above basic: Silver and Gold. It is one of few programs allowing members 100 percent of miles even for discounted Economy flights. Royal Skies frequent flyers get 125 percent of miles for discounted Business fares. Full-fare Business earns 150 percent. Qantas’s Frequent Flyer has a minimum points guarantee: members earn at least 1,000 points on Economy, and at least 1,250 on Business or First. Singapore Airlines’ KrisFlyer warns that certain categories of economy class tickets “are ineligible for mileage accrual”.

China Airlines Dynasty Flyer members don’t earn mileage for tickets sold at discounts of 50 percent or more. Free, infant, barter, charter, excess baggage, airline and travel industry discount tickets don’t earn miles either. Always check with the airline or travel agent whether your flight will accrue miles.

There is an important distinction between air miles or points, and “tier” or “status” miles or points. Most FFPs work along similar principles. Air miles or points (earned by flying or buying services from FFP partners) make up the “currency” you need to redeem tickets. Tier or status miles, on the other hand, collected through actually flying, allow you to progress to higher membership levels within your programme. The higher your level, the more benefits you get (typical perks include extra baggage allowance, dedicated check-in, the use of airport lounges, priority waiting lists, priority for upgrades and so on). Several programmes have three elite tiers above basic, although some, such as Malaysia Airlines and Thai Airways International, manage quite well with two.

Members of Cathay Pacific’s FFP, Marco Polo Club, earn “Club Miles” that are used to determine their membership tier (20 club sectors or 30,000 miles for Silver, 40 sectors or 60,000 miles for Gold and 80 sectors or 120,000 miles for Diamond). All Marco Polo club members are also enrolled in the Asia Miles program (www.asiamiles.com), and it is Asia Miles that can be redeemed for flights or other awards. Here is where it becomes potentially confusing: Marco Polo members can also earn Club Miles when flying with other OneWorld partner airlines, while Asia Miles can also be earned when flying with Cathay’s 17 Asia Miles airline partners.

Similarly, Qantas Frequent Flyer “status” credits are separate from frequent flyer points. The number of status credits you earn is determined by cabin class and distance flown – the more credits you earn, the sooner you can achieve a higher status. Qantas Frequent Flyer, with Bronze (entry level), Silver, Gold and Platinum cards, is the largest FFP in the Australian region, with over four million members. Partner airlines include OneWorld alliance members such as Cathay Pacific and British Airways.

Cathay: Marco Polo	Singapore Airlines	China Southern	Thai: Good network	Vietnam Airlines

While air miles remain valid for a few years, tier miles are generally re-set to zero annually. A few airlines are slightly more lenient. Vietnam Airways Golden Lotus Plus Silver card members must accumulate at least 26,000 qualifying points (or take 14 eligible international flights in Business Class) in a year to move to the Gold tier – but the points remain valid for two years after 31 December of the year in which they were earned.

Korean Air SKYPASS members who have flown more than 50 000 miles on Korean Air (or 30,000 miles on Korean and 20,000 on another SKYPASS partner) are eligible for “Morning Calm Club” qualification, which brings privileges such as additional 10kg baggage allowance and exclusive check-in. The next tier is Morning Calm Premium Club. As for those high fliers who manage to accumulate a million miles, life membership to the Million Miler Club beckons.

As you move up flequent flyer tiers, it becomes easier to earn miles. A higher membership level translates into more award miles for members of Flying Blue, the frequent flyer programme of major European airlines Air France and KLM, which joined forces in June 2005. (The programme has about 100 partners and four membership levels, Ivory (basic), Silver, Gold and Platinum, depending on the number of “Level Miles” earned in a year.) Silver members get 50 percent more award miles for flights than Ivory, Gold members get 75 percent more and Platinum 100 percent more. Along with other typical high-tier benefits, the extra baggage allowance doesn’t hurt either: 5kg more for Silver, 10kg more for Gold and 20kg more for Platinum.

Qantas Frequent Flyer Gold and Platinum members are privy to a range of benefits and free membership of the Qantas Club programme. They also earn Qantas Frequent Flyer points faster (Silver members get a 25 percent “status bonus”, Gold 50 percent and Platinum 100 percent, on top of base miles earned.) Garuda Indonesia re-launched its mileage programme in February 2005 with new benefits and services, offering three tiers above basic Blue: Silver, Gold and Platinum.

Extra baggage allowance is a handy perk. Malaysia Airlines Enrich Gold members (the tier above basic Blue) enjoy an extra 50 percent. Platinum members (the level is reached only by invitation) get a whopping 100 percent extra – and their miles never expire. Qatar Airways Privilege Club Burgundy cardholders are allowed an extra 15kg of baggage, Silver 25kg and Gold 30kg.

Free miles do have a shelf life, usually three years. After that period some airlines will let you pay to keep them

FFP membership is generally free (although you may have to pay for services offered further down the line). But the miles you earn aren’t yours for keeps. They often have a three-year shelf life, after which they expire (although some programmes, including that of Cathay Pacific, allow you to extend validity by paying a fee). Qatar Airlines Privilege Club Qmiles are valid for five years, and Gulf Air Frequent Flyer Programme miles for an exceptionally generous 10 years. Flying Blue award miles don’t expire – as long as you take at least one flight with a SkyTeam airline partner in 36 months.

Malaysia Airlines Enrich miles remain valid for three years. So do Krisflyer (www.krisflyer.com) miles. Northwest Airlines WorldPerks miles officially don’t expire, but if members don’t earn mileage from any source (including hotel stays, car rentals or credit cards) for three years, the account can be terminated and accrued miles forfeited. Virgin Atlantic Flying Club miles do not expire as long as you take part on at least one “earning or spending activity” every three years. Similarly, United Airlines Mileage Plus miles do not expire, as long as you earn or redeem some miles at least once every 36 months.

In November 2004, Air New Zealand changed its FFP mileage currency to Airpoints Dollars, which are valid for four to five years. Airpoints Dollars can be used just like cash to buy seats on Air New Zealand flights. A one-way flight between Asia and New Zealand, on full Economy fare, earns 80 Airpoints Dollars, Premium Economy earns 100 Airpoints Dollars and Business Premier, 205. Every year, on a member’s anniversary of joining, all Airpoints Dollars earned more than four years earlier expire (with the exception of Gold and Gold Elite status member miles, which don’t expire).

Several FFPs welcome young travellers from the age of two (otherwise enrolment age is normally 12). The Young Explorer is KrisFlyer’s programme for children between two and 12, who get all the benefits of KrisFlyer membership and automatically become members of the Young Explorer Club. (KrisFlyer is also the frequent flyer programme of Silkair, which only has economy and business class cabins.)

Children don’t always earn miles at the same rate as adults. Toddlers on Korean Air’s SKYPASS programme earn 75 percent of adult miles. However, child redemption award tickets tend to “cost” the same number of miles as adult tickets. A welcome exception is Air India’s Flying Returns, requiring only half the mileage points for award tickets for children under 12. Lufthansa’s Miles & More requires only 75 percent of the miles normally redeemed for adult flights awards for children from two to 11. Lufthansa, Thai Airways International, Austrian Airlines and Cathay Pacific have signed a reciprocal frequent flier agreement with India's fast-growing Jet Airways. The Jet Airways FFP, Jet Privilege, operates on a five-tier basis. Jet Blue is the entry level, followed by Jet Blue Plus (10 flights/ 15,000 status miles). The highest tiers are silver, gold and platinum. On Jet Airways, complete 14 domestic Club Premiere of full fare economy flights to get a free international sector ticket to SIngapore, Kuala Lumpur, Colombo or Kathmandu. For 20 domestic flights you can get a free return ticket to London. Recently launched Indian Kingfisher Airlines has its King Club FFP.

Most FFPs don’t allow spouses or family members to pool miles. Miles earned by a China Airlines Dynasty Flyer member, for example, may not be combined with those of another member. But a few programmes, such as those of Japan Airlines (JAL) and Korean Air, are more generous. JAL Mileage Bank’s JAL Family Club is a programme for members living outside Japan and their families, which – for an annual fee of Y3,150 – allows family members to combine miles to redeem awards. In April 2007, Japan Airlines, the biggest carrier in the Asia-Pacific region, joined the oneworld alliance. Up until this point, JAL was the largest airline in the world not aligned to a multilateral global alliance. Members of the JAL Mileage Bank can earn and redeem mileage awards on all other oneworld carriers, and frequent flyer programme members of the other oneworld airlines can earn and redeem awards on JAL.

Under Korean Air’s SKYPASS Family Plan, enrolled family members (including parents, spouses, brothers and sisters and even sons- and daughters-in-law) may also pool awards. Korean Air also requires only 90 percent of the standard award redemption mileage when family members with the same itinerary claim two or more round-trip award tickets. (This doesn’t apply for one-way and infant tickets.)

The Qantas Frequent Flyer program doesn’t offer a family plan, but it does give members the flexibility to transfer a portion of their points (5,000 to 100,000) to one family member, who must also be a member, once a year. This is helpful when couples have enough points between them, but not individually, for an award flight. Flying Returns, the joint frequent flyer program of Indian Airlines and Air India, also allows members to pool points with spouses (provided the spouse is also enrolled).

Emirates	Japan Airlines	Srilankan: Skywards	British Airways	MAS: Enrich

Vietnam Airways’ Golden Lotus Plus Gold card members may nominate and transfer awards to up to seven people registered on their redemption group forms. (The programme has Silver and Gold tiers above basic; to obtain Silver status, members must take one eligible flight with Vietnam Airlines within a year of becoming a member.) Thailand-based regional airline Bangkok Air offiically launched its first FFP in January 2006. The concept is simple: members get one free one-way domestic ticket for every 10 paid domestic segments. To progress to the programme's premier tier, 200 points a year are needed.

Fast-expanding Middle-Eastern airline Qatar Airways (www.qmiles.com) carried 3.3million passengers in 2003/4, up 35 percent on the previous period (the figure was projected to rise to about 4.5 million in the next year). The airline describes its Qatar Airways Privilege Club as “one of the most generous frequent flyer programmes” in the world. Every time they fly, members accumulate Qmiles, at a comparatively generous rate: Economy flights earn 100 percent of miles, Business earns 200 percent and First 300 percent. There are three tiers: to reach Burgundy, you need 4,000 Qmiles or three flights in 12 months, for Silver you need 20,000 Status Miles or 15 Qatar Airways flights, and for Gold you need 50,000 Status Miles or 30 Qatar flights. Once you have reached Burgundy status, you can enroll up to nine family members, with Qmiles earned by members credited to you account (children between two and 11 earn 50 percent of miles; those over 12 earn 100 percent).

The Scandinavian Airlines Eurobonus frequent flyer programme has two tiers above basic: Silver and Gold. Silver members earn 15 percent more “Basic” points, while Gold members get 25 percent more. Membership level is determined by the number of Basic points members earn during a specific period, but – and this is where things get more complicated – Gold membership levels depend on the region you find yourself in (70,000 Basic points for Asia and the US, but 55,000 for Denmark and Finland). Discounted Economy earns only 25 percent of points. Normal Economy earns 100 and Business 200 percent. But, on the upside, tickets can be redeemed up to departure for bonus flights on SAS on destinations where e-tickets are available. Members are allowed to let family or friends use their points.

A number of FFPs have different programmes for different parts of the world. Flying Returns (www.airindia.com) has a range of four: the India programme, UK-US-Canada programme, the Gulf programme and the Far East and Southeast Asia programme. Membership is valid for three years, and all reward miles must be redeemed in that time.

Redeeming airline miles

You have the miles. Now you need to book your flight. But with millions of frequent flier air miles competing for a limited number of available redemption seats, this can be tricky. Redemption tickets occupy limited quotas on various flights and busy sectors can be hard to get onto.

Flying Blue allows members to book flight award tickets on Skyteam members online (www.airfrance.com or www.klm.com, or by contacting the Customer Service Centre) until 24 hours before departure (for other airline partners, at least two weeks are needed). Thai Airways International’s Royal Orchid Plus, with Basic, Silver and Gold cards, makes it relatively easy for members on all tiers to redeem miles: they simply have to contact a THAI reservations office worldwide three days in advance, and if they go through the Royal Orchid Plus online service, award tickets can be issued instantly. From talking to frequent travellers, it appears that redemption tickets may be somewhat easier to come by on THAI than on some of its Asian airline competitors.

Gulf Air Frequent Flyer Programme Blue cardholders have to redeem their miles for a free ticket 14 days before departure, Silver four days before and Gold only a day in advance. While Qantas Frequent Flyer points can technically be redeemed up to 24 hours before departure, the airline recommends booking well in advance, as award seats are limited and may not always be available. Members can book award flights at www.qantas.com/frequentflyer, or call Qantas reservations.

Royal Brunei’s Royal Skies requires award flight redemption requests to be made at least five working days before departure. Members have to submit redemption forms to a Royal Brunei office or Royal Skies service centre. KrisFlyer members can redeem awards online, through Singapore Airlines reservations offices or Krisflyer service centres. To redeem miles for free tickets with Qatar Airlines Privilege Club, Burgundy members need to act at least seven working days before departure, Silver members four and Gold members three. Flying Returns members must generally allow about 15 days for awards to be issued.

The other major obstacle is blackout periods and the fact that most airlines limit the number of redemption seats available on flights. Thai Airways International states that award travel is subject to “capacity control” and that there “may be” blackout periods. Malaysia Airlines says it does not have fixed blackout dates for redemption tickets – as long as there are seats available.

Another major obstacle is the blackout periods and the limited seats available for redemption especially at holiday times

Virgin Atlantic’s regional partner airline Virgin Blue, which recently launched its own frequent flyer programme, Velocity, prides itself on not limiting the number of redemption seats on flights. If there’s a seat available on a flight, Velocity (www.velocityrewards.com.au) members can redeem miles to have it. The same goes for Pacific Blue and Polynesian Blue. Virgin Blue also does not impose blackout periods (not even during high-traffic periods such as Christmas), and Velocity points do not expire while members remain “active”. Under the Korean Air SKYPASS programme, more miles are needed to redeem award tickets and upgrades during peak seasons than quiet periods.

Lufthansa’s frequent flyer program Miles & More, which was launched in 1993 and is also the programme of the Austrian Airlines Group and LOT Polish Airlines, has more than 10 million members. From April 2006, members’ status levels are no longer determined by the number of flights they take – they can only progress to the next membership tier by collecting the required number of status miles (35,000 status miles in a year for Frequent Traveller status, and 130,000 to reach Senator level). Unusually, Senator-level members of both sexes who cannot maintain their status level due to “parental leave” of at least six months are allowed to keep it.

As we said, you don’t have to travel to earn mileage. It’s easy to clock up miles on the ground. Non-airline frequent flyer partners typically include finance companies, hotels and travel businesses, telephone and car hire companies. Qantas Frequent Flyer has more than 2.4 million members, and its partners include hotels, car rental companies, charge cards, a phone card company, insurance company and even a wine club. With the Continental Airlines OnePass program, travellers earn OnePass miles that can be redeemed for reward travel or for bidding on packages and products at the “OnePass Online Auction”. They also earn miles and points that qualify for special “Elite” status benefits. OnePass members can redeem miles for travel to more than 500 travel destinations worldwide, and get a minimum of 500 OnePass miles for every flight.

Marco Polo Club members have access to about 220 Asia Miles partners in eight “lifestyle” categories – from finance, hotels and telecoms to dining, retail and the health and beauty sector, while Malaysia Airlines Enrich members earn miles not only when flying MAS or its airline partners, but also when buying Golden Holidays tour packages, staying at participating hotel properties, using credit cards and driving rented cars from car rental partners. American Airlines AAdvantage members can earn miles with anything from beach holidays to golf outings and spa services. Japan Airlines Mileage Bank members can even earn miles through newspaper subscriptions.

The fast growing China Southern Airlines Sky Pearl Club (www.cs-air.com/skypearl) only accepts members over the age of 12, but already has more than three million members, with over 500 new members joining each day. Travel awards can be earned by flying with flying China Southern Airlines or partners (including Northwest Airlines), staying at participating hotels and so on. As with most FFPs, the higher the class of service you fly, the more miles (or, in this case, kilometres) you earn. In April 2007, China Southern Airlines made some changes to its Sky Pearl Club frequent flyer programme, including dropping the mileage threshold from 20,000 to 10,000 for a free ticket. Gold and Silver Sky Pearl Club card members now also receive special elite bonus mileage on eligible flights. Sky Pearl Gold Card members earn an extra 30 percent and Sky Pearl Silver Card members an extra 15 percent.

Pearl Club members need 80,000 Elite Qualifying Mileages or 40 elite Qualifying Segments to upgrade to Gold Card status. For Silver Card membership, 40,000 Elite miles or 20 Elite qualifying segments are needed. First or Business Class travellers get more benefits: flying First or Business Class once is counted as two Elite Qualifying Segments (EQS) while one flight in Economy is calculated as one. The programme also expanded award tickets zones from six to eight zones. The airline is planning a full re-launch of its programme later in 2007.

Emirates Skywards, with Blue, Silver and Gold tiers, is the FFP by Emirates. As is generally the case, tier miles are accumulated within one calendar year. Economy flights earn one Skywards Mile per mile flown (100 percent), Business flights 150 percent and First Class 200 percent. Members can redeem awards online at www.skywards.com, or through Skywards service centres or the airlines’ reservations offices. SriLankan Airlines was part of the Skywards programme, but recently launched its own FFP, FlySmiLes.

All Nippon Mileage Club does give members up to two to three days before boarding their flight to book redemption tickets – but members cannot pool miles, and there are blackout periods. The airline also warns that award seats are “subject to availability”. Equal numbers of redemption miles are required for adult and child seats. To quality for Bronze tier, members need 30,000 ANA Platinum Points or fly 30 times over a year, for Platinum they need 50,000 Platinum Points or fly 50 times, and to reach the highest level, ANA Diamond Service, 100,000 Platinum points or 120 flights a year are needed.

China Airlines’s Dynasty Flyer has a special Junior card for kids, and Gold, Emerald and Paragon elite tiers. Members of all tiers get an extra bonus of 2,000 miles as a birthday gift if they fly on China Airlines or Mandarin Airlines in their birthday month. Other bonuses include an extra 3,000 miles credited when members use a Dynasty Package to travel to the United States, Canada, Europe or Australia, or 1,000 miles for Dynasty Packages to all other destinations.

Finally, fine print, blackout periods and limited seats may all make FFP membership seem more hassle than it’s worth, but if you persist with one programme, make use of partner services on the ground and plan ahead, that elusive “free ticket” may yet be yours. Failing that, early check-in, lounge access and other FFP higher-tier benefits do make travel just that tiny bit more comfortable.

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