Star Alliance launches airline alliance credit card
A world-first flexible points credit card offers fast-tracked status, access to thousands of lounges and more.
Australian frequent flyers will be the first to trial a new rewards program — a one-of-a-kind product created on the basis of a global airline alliance.
In a world first, HSBC has teamed up with Star Alliance to launch the Star Alliance Credit Card which will allow members to earn points on everyday purchases and convert them into miles across 26 member airline rewards programs.
Unlike existing products, the new HSBC card, which will be issued exclusively on Visa credit, will include the frequent flyer programs of multiple carriers, including Air Canada’s Aeroplan, Air New Zealand’s Airpoints, Singapore Airlines’ KrisFlyer and THAI’s Royal Orchid Plus.
Revolving around a major global alliance involving unique partners whose programs aren’t usually involved in other Australian flexible rewards programs — like United Airlines’ MileagePlus and South African Airways’ SAA Voyager — the Star Alliance Credit card has entered a market which, up until now, has been dominated by American Express, whereby members accrue Amex Membership Rewards Points which then convert into miles for a limited number of airlines.
“It will offer a new world of loyalty experience with not only the ability to earn points, but also fast track to Star Alliance Gold Status through everyday spending,” Star Alliance CEO Jeffrey Goh said, who noted the credit card program was the outcome of strategic discussion with member airlines in the Australian market.
Members are required to spend $4,000 in the first 90 days in order to reach Gold status on a nominated participating airline, and then $60,000 every following year to attain the status. Other perks include access to over 100o airline lounges worldwide, priority check in, boarding and baggage handling as well as extra baggage allowance on eligible fares.
Daniel Sciberras, editor-in-chief at Point Hacks, said meeting the minimum spend requirement is imperative to activating the many benefits of the card.
“If you are a big spender, you might just want to spend $5,000 per month on the card to work towards qualifying for fast-track Gold (minimum $60k annual spend), then look to use a higher earning card above that spend for the rest of the month,” he said.
Otherwise, Sciberras recommends starting with a $3,000 spend per month to earn 1 star point, the equivalent to equivalent to 0.8 frequent flyer points, and work your way through the tiered structure.
While the causing factors of current inflated ticket prices, like aircraft and labour shortages, outstanding travel credits and pent-up demand for travel, remain in play, Sciberras said holding the card could maximise the chances of Australian flyers finding a reward seat as it opens up another channel of availability outside of their direct carrier’s rewards program.
“That is, it opens up Star Alliance airlines using Star Alliance points,” Sciberras said.