star alliance is the world’s largest airline alliance, home to big names like United Airlines, Lufthansa, Air Canada and Singapore Airlines.
Earlier this year, the world’s first airline alliance celebrated its 25th birthday. In recognition of this special occasion, Star Alliance has launched an HSBC co-branded credit card and points currency in Australia, known as Star Alliance points.
Interestingly, Star Alliance does not have any member airlines in Australia. But we have seen Virgin Australia partner with many Star Alliance carriers over the years, including Air Canada and United. Many of these partnerships include elite reciprocal benefits, meaning Australians can also use Star Alliance Gold card benefits on domestic flights.
Star Alliance has yet to come up with any plans for the card for the US market, but it’s still an interesting prospect. And as a Star Alliance loyalist, the program and its co-branded credit card have a few cool perks I’d love to see in the US
This is why I’m happy to see a Star Alliance credit card in the US, if Star Alliance offers it here.
Star Alliance Gold Status
Australia’s Star Alliance credit card offers cardholders Star Alliance Gold Status. Some of the benefits of Star Alliance Gold status include Gold Track security, increased baggage allowance, priority boarding, priority baggage handling, and best of all, access to Star Alliance airport lounges .
Australia’s Star Alliance credit card, just opened to subscribers, offers Star Alliance Gold status to all cardholders for the first year after spending AU$4,000 (about $2,670) in the first 90 days become a card member. To renew Star Alliance Gold status for subsequent years, cardholders must spend AU$60,000 (about $40,000) annually on the card.
Customers can choose Star Alliance Gold status from Air Canada Aeroplan 50K, Air New Zealand Airpoints Nominated Gold, EVA Air Infinity MileageLands Gold, Singapore Airlines KrisFlyer Elite Gold, South African Airways Voyage Gold, Thai Airways Royal Orchid Plus Gold or United Airlines Premier Gold. This is a pretty neat feature, as travelers can choose a status with a program that best suits their travel habits.
For those who already have Star Alliance Gold status, you can decline Star Alliance Gold status on your credit card — by declining this status, you’ll receive 40,000 Star Alliance points. For reference, English Premier League Gold, Premier Platinum, Premier 1K and Global Services members all have Star Alliance Gold.
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While a $40,000 annual spend isn’t too small for most credit card holders, for those who spend a lot of money on Star Alliance Gold currently, having 40,000 Star Alliance points is transferable every day. years when spending $40,000 on a co-branded credit card can be tempting. In other words, it’s like getting extra points for every dollar spent.
Related: Book this, not that: Star Alliance Award Ticket
Mark moving
Star Alliance points can be transferred to seven Star Alliance airlines. These seven airlines represent 92% of Star Alliance flights to Australia, according to Renato Ramos, Star Alliance loyalty director:
With the exception of Air New Zealand, Star Alliance points are transferred to member airlines in a 0.8:1 ratio. By the way, at the time of this writing, 1 US dollar is equivalent to 0.67 Australian dollars, although it has fluctuated between 60 and 80 cents per US dollar over the past 5 years. This makes me wonder if Star Alliance could offer 1:1 transfers if US credit cards are launched, but I’ll talk more about that later.
This is similar to what we see with some transferable points programs outside of the US, where transfer and earning rates are often adjusted to reduce exchange fees and local currency. For example, many American Express International Membership bonus points transfer in a 3:2 ratio to airline partners.
Related: How (and why) you should earn transfer points
What I’d like to see from a US Star Alliance credit card
Alliance-wide money transfer
First and foremost, to offer a credit card that really makes a difference, ideally, Star Alliance points will go to all airlines in the alliance.
Transfer partners like Avianca Life Miles, Turkish Airlines Miles and Smiles and Club ANA Mileage provide some Best Star Alliance Redemption Rewardsoften a fraction of the price of the same seat in a program like United MileagePlus.
There are plenty of sweet spots in lesser known Star Alliance point currencies. For example, you can fly Lufthansa first class from USA to South Africa with only 75,000 Aegean miles one way. Giving members access to all Star Alliance loyalty programs unlocks many high-value redemptions currently unattainable for those based in the US
Although the seven transit partners available on the Australia card represent most Star Alliance flights to and from Australia, most Star Alliance member airlines serve the Americas. After all, if Star Alliance offers a credit card, shouldn’t its points be key to the alliance?
Better earning rate
HSBC Star Alliance Australian credit card offers 1 Star Alliance point for every dollar spent in the statement period for the first $3,000 and 0.5 points thereafter. When each statement period ends, cardholders earn 1 Star Alliance point for the next $3,000 spent during the period and 0.5 points thereafter.
Due to differences between the Australian and US credit card markets, I would expect the US Star Alliance credit card to earn at a similar rate to some other US travel credit cards.
One of the majors Points are transferable card in the US is Chase Sapphire Priority Card, offers 5 points per dollar on travel purchased through Chase Ultimate Rewards, 2 points per dollar on all other travel, and 3 points per dollar on dining. The Capital One Venture Rewards Credit Card Xa popular premium travel card that earns 5 Capital One miles for every dollar spent on airline tickets booked through the Capital One Travel portal.
To match US travel credit cards, ideally a US Star Alliance credit card will offer 3 or more points per dollar on Star Alliance flight purchases. The card can also have other bonus categories, such as 3 Star Alliance points per dollar on dining and 1 or 1.5 points per dollar on everything else.
More attractive signup bonus
Most premium credit cards in the US offer sign-up bonuses that range from 50,000 to 150,000 points. The HSBC Star Alliance Australia credit card doesn’t have the typical points sign-up bonus.
As discussed, new cardholders get Star Alliance Gold status for one year after spending AU$4,000 (about $2,670) on the card during the first 90 days of being a member of the card. Australian Star Alliance credit card holders must spend AU$60,000 (approximately AU$40,000) annually on the card to maintain Gold status.
In the US, I would expect a (potentially much higher) spending requirement to maintain Star Alliance Gold status, but instead of offering Gold status as a sign-up bonus, I’m hoping for a way Traditional approach: Earn a certain number of Stars Alliance Points after spending a certain amount on the card in the first few months.
When Capital One Ventures The card was launched last year, it offered a 100,000-mile sign-up bonus after you spent $10,000 on purchases within the first six months. I would like to see the same welcome offer from the US Star Alliance credit card.
US cards may have higher spending requirements for status
Unfortunately, we may see higher spending requirements for Star Alliance Gold status if the card reaches the US
Let’s look at the competition. Right now, you can earn the equivalent of Oneworld and SkyTeam Star Alliance Gold through credit card purchases alone, but it requires a substantial $40,000+ in annual credit card spending to reach equivalent status.
America’s Platinum Airlines status – comes with Oneworld Emerald – claim $75,000 in annual spending for a American Airlines co-branded credit card (except for the free annual fee AAdvantage® Aviator® Mastercard® would require $150,000 in annual spending).
You may be eligible for Delta Gold Medal status – comes with SkyTeam Elite Plus — when you earn 50,000 Medal Eligibility Miles. Delta SkyMiles® Reserve American Express Card earn 15,000 MQMs for every $30,000 you spend on the card in a calendar year (up to 60,000 MQMs). You will also be exempted from the Medals Eligible Dollars after spending $25,000 on the card. In return, you need to spend $120,000 on a Delta Reserve card to achieve Gold Medal status.
While a US-issued Star Alliance credit can earn Star Alliance Gold status, I wouldn’t be surprised to see an annual spending requirement above $75,000.
Related: Best credit cards to achieve elite status before year end
This card is an attractive alternative to win status outright
With Star Alliance Gold status, the Star Alliance credit card can be an attractive alternative to pursuing status by flying, especially when it receives harder to qualify for Star Alliance Gold with airlines like United. Cardholders enjoy status like United Premier Gold or Aeroplan 50K just by holding the card and spending the equivalent of $40,000 per year.
Star Alliance Gold status includes the following benefits:
- Priority reservation waiting list.
- Priority airport waiting.
- Security gold track.
- Increase baggage allowance.
- In-house preferred.
- Airport lounge access.
- Priority baggage handling.
- Priority check-in at the airport.
- Upgrade Business Class on Heathrow Express.
Some Australians may want to choose a program like United MileagePlus or Air Canada plane for their elite status, as both programs have a partnership with Virgin Australia that allows reciprocal points earning, lounge access and other benefits.
When comparing the Australian Star Alliance credit card with United Chase co-branded credit card setannual fee of AU$450 ($300) closest to the AU$250 annual fee of Unity quest card. The United Quest card does not offer Star Alliance benefits, so if it is offered in the US at Australian rates, the Star Alliance credit card could be a game changer, especially with possible points. transfer and Star Alliance Gold status through a program such as MileagePlus.
Related: This is how Star Alliance can learn from Oneworld Emerald status
bottom line
While the Star Alliance credit card is currently only available in Australia, we are delighted to see another transferable point currency hit the market through a scheme that allows you to earn Star status Alliance without flying.
Star Alliance has chosen Australia to launch its new Star Alliance loyalty program and HSBC co-branded credit card. Australia is a “safe” market for Star Alliance as their credit cards do not compete with any home airlines. At the same time, a small number of Star Alliance members have a partnership with Virgin Australia, offering elite benefits of reciprocity.
I’d love to see a similar Star Alliance co-branded credit card come to the US, with improved points transfers and higher earning rates.
