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Star Alliance and HSBC Australia reimagine airline rewards for consumers with a world-first credit card (media release)

HSBC Australia and Star Alliance, the world’s largest airline alliance, today announced the launch of the HSBC Star Alliance Credit Card in Australia, providing customers with greater choice when earning and using their airline points. Australian customers can earn Star Alliance Points on their everyday eligible credit card purchases that can be converted to miles/points in participating Star Alliance member carrier frequent flyer programs. The card is the world’s first credit card created with an airline alliance and will be issued exclusively on Visa credit. It brings together seven launch Star Alliance carriers on a single credit card platform. Jeffrey Goh, CEO of Star Alliance, said: “Star Alliance is delighted to launch this industry-first loyalty product together with HSBC and Visa. This is very much consistent with a key strategy of Star Alliance which is to offer a loyalty proposition that others talk about. This unique product is an outcome of strategic discussions with our member airlines for the Australian market. It will offer a new world of loyalty experience with not only the ability to earn points, but also a fast track to Star Alliance Gold Status through everyday spending. Star Alliance Gold Status offers a range of benefits such as lounge access and priority boarding across all Star Alliance member carriers.” At the time of the launch, the participating member airlines and their respective frequent flyer programs are: Air Canada - Aeroplan®, Air New Zealand - Airpoints™, EVA Air - Infinity MileageLands, Singapore Airlines - KrisFlyer, South African Airways - SAA Voyager, THAI - Royal Orchid Plus, and United - MileagePlus®. The HSBC Star Alliance Credit Card provides Australian residents a fast track to Star Alliance Gold Status in the first year of their account, when they spend AUD$4,000 on eligible purchases within 90 days from card approval[5]. Star Alliance Gold Status gives customers access to over 1,000 airline lounges worldwide, priority check-in, boarding and baggage handling, as well as excess baggage allowance on eligible fares and other privileges when travelling on flights operated by Star Alliance member airlines. (Release has more.)<br/>

US fines airlines more than $7m for not providing refunds

The Transportation Department said on Monday that it had fined a half-dozen airlines a total of more than $7m for failing to provide timely refunds to customers. The department’s intervention contributed to the airlines’ issuing more than $600m in refunds, it said. Frontier Airlines, a budget carrier based in Denver, was fined $2.2m, more than any other company. It was the only US airline penalized as part of Monday’s announcement and has issued $222m in refunds, according to the department. The refunds were meant to compensate passengers for flights that were canceled, significantly delayed or otherwise altered substantially, the department said. “As people get ready to fly this holiday season, I want customers to know that the DOT has their back,” the transportation secretary, Pete Buttigieg, said on a call with reporters. Air India was assessed the second-largest fine, of $1.4m, and TAP Air Portugal was fined $1.1m. The remaining three carriers — Aeromexico, El Al and Avianca — will each pay less than $1m. Including the penalties announced on Monday, the department’s Office of Aviation Consumer Protection has issued a record $8.1m in fines in 2022. In a statement, Frontier said it had issued about $100m in what it described as “good-will refunds” that were not legally required. The airline will pay only $1m of the $2.2m fine because the DoT credited it for providing refunds to passengers who canceled nonrefundable tickets early in the pandemic. The announcement followed months of growing complaints from travelers about flight delays, cancellations and other problems. <br/>

Britain raises concern over Korean Air-Asiana combination

Korean Air said Tuesday that Britain's antitrust regulator has expressed concerns over its planned integration with smaller local rival Asiana Airlines, citing monopoly worries on routes between the two countries. In a statement released Monday, Britain's Competition and Markets Authority said the buyout of Asiana by Korean Air could lead to higher prices for passengers flying between London and Seoul, as well as impacting air cargo services. "Korean Air and Asiana Airlines are the two main players on the London to Seoul route and the deal risks UK customers and businesses paying over the odds or receiving a lower quality of service," Colin Raftery, senior mergers director at the CMA, said in the statement. Should Korean Air and Asiana Airlines fail to address our concerns, this deal will progress to a more in-depth investigation, he said. In response, Korean Air said, "We are on the right track to finalize the process and will soon submit the updated remedies after discussions with the CMA." The national flag carrier said it will continue to cooperate closely with the CMA and the remaining authorities to complete the merger process. In January last year, Korean Air submitted documents to antitrust regulators in 14 countries for the review of its combination with Asiana. The company has received approval from nine countries -- Australia, South Korea, Singapore, Vietnam, Thailand, Turkey, Taiwan, Malaysia and the Philippines -- so far for the integration while awaiting the go-ahead from five countries -- China, Japan, Britain, the European Union and the United States.<br/>

Air India becomes AAPA’s first Indian member airline

Air India has joined the Association of Asia Pacific Airlines (AAPA), giving the trade body an active member in the fast growing Indian air travel market. Air India’s membership is effective immediately, says AAPA. News of its membership also comes days after the conclusion of the the association’s 66th Assembly of Presidents in Bangkok. Air India will be the AAPA’s 15th member, according to the association’s web site. “It is an honour for AAPA to welcome Air India into our ranks as the first Indian airline to join the association,” says AAPA director general Subhas Menon. “Air India operated its first flight in 1932 in India, which represents one of the largest civil aviation markets in the world. The airline will add considerable weight to the international aviation discourse undertaken by AAPA on behalf of Asia Pacific airlines.” Air India CE Campbell Wilson attended the recent AAPA meeting. Before joining Air India Wilson served in several senior roles in the Singapore Airlines (SIA) Group – itself an AAPA member. Air India has also announced that it is re-joining the Federation of Indian Airlines, which works with authorities on matters of concern such as safety, passenger amenities, and other areas.<br/>

SIA blacklists passenger who was unruly on one flight and hit cabin crew member on connecting flight

An unruly passenger has been blacklisted from all Singapore Airlines flights after hitting a cabin crew member. The man was on board SQ711 from Bangkok to Singapore last Tuesday when he became unruly during meal service, and made many requests for alcohol. To ensure the safety of other passengers, the crew politely declined his requests. A video of the incident has gone viral online. It shows the man hurling vulgarities at the cabin crew and demanding water. He was handed over to the auxiliary police after the flight landed at Changi Airport, and he was issued a verbal warning. But he hit a cabin crew member on a subsequent SIA flight, according to the airline’s statement on Monday announcing his blacklisting. An SIA spokesman said the man had appeared calm and agreed to behave for connecting flight SQ352, which was scheduled to depart from Singapore for Copenhagen last Wednesday. So he was allowed to continue with his flight. But once he was on board, he became disruptive again. “In one instance, the passenger became aggressive and hit a cabin crew member,” said the spokesman. “However, our cabin crew managed to calm the passenger down eventually.” The rest of the flight had proceeded uneventfully. The cabin crew member who was attacked later received medical attention and did not sustain any serious injuries. SIA said it would continue to provide the necessary support to the crew member, and that the airline has since decided to blacklist the passenger from all SIA flights. The spokesman added: “Singapore Airlines takes the well-being of our staff and customers seriously. We will take appropriate action against any passenger who may risk the safety of our staff and customers.”<br/>