In May of this year the world’s largest airline alliance, Star Alliance, revealed its intriguing plan to launch a co-branded credit card. This was hugely exciting, and something we’ve never seen from an airline alliance. The idea was to offer a rewards credit card that would unlock the ability to earn points or miles across Star Alliance’s worldwide reach of 26 member airlines.
News picked up today reveals the all-new Star Alliance credit card is set to launch to an Australian market, with the Singapore Airlines website sharing some previously hidden information on the card. For now, no launch date has been confirmed but we do get an inside into the card’s perks.
Star Alliance Points To Become The Alliance Currency
Based on details shared and since removed by Singapore Airlines, Australia has been chosen as the launch market for the new “HSBC Star Alliance Credit Card”. We note that HSBC is an ideal banking partner for the product, operating across several countries popular with Star Alliance loyalty programmes, including Australia, the United States, Singapore and many European countries.
We can expect the card to come to market with an annual fee of AU$450, waived in the first year for a limited time. As was expected when news of the Star Alliance card first broke, a new central currency has been established, dubbed “Star Alliance Points”. Singapore Airlines has confirmed that each Star Alliance Point will convert to 0.8 KrisFlyer Miles.
The HSBC Star Alliance card is expected to launch in Australia with the following earn rates;
- 1 Star Alliance Point per AU$1 spent (up to AU$3,000 per statement period)
- 0.5 Star Alliance Points per AU$1 spent on eligible purchases thereafter
This yields a somewhat disappointing earn rate of 0.8 KrisFlyer Miles per AU$1 spent and 0.4 KrisFlyer Miles per dollar in excess of AU$3,000 monthly. The Singapore Airlines website did not confirm any exchange ratios for transfers to other Star Alliance programs, but we do expect the exchange rate to differ based on the program you wish to send points/miles to.
Star Alliance Points To Transfer Automatically
The Star Alliance website appears to reveal that HSBC Star Alliance cardholders will gain access to a central Star Alliance Rewards Portal, where points are stored and transfers can be made. Although, according to details provided by Singapore Airlines, members will have the ability to nominate a specific carrier as their “Status Airline” when completing their application.
Star Alliance Points would then be “converted and credited automatically” into your chosen frequent flyer account each month.
What will be interesting to learn is whether you’ll be able to accumulate Star Alliance Points as a single universal currency for transfers at a later date, or if cardholders must lock in a specific airline during application. If the latter prevails, many will want to know if their Status Airline can be changed at any point.
Fast track To Star Alliance Gold
While a list of card perks is yet to be released, the HSBC Star Alliance card will launch in Australia with one huge benefit – a fast track to KrisFlyer Elite Gold status. To unlock membership, you’ll need to spend AU$4,000 in the first 90 days of card membership.
From there, a spend of at least AU$60,000 in every 12-month period from account opening will retain this status level. That’s the equivalent to spending AU$5,000 each month.
KrisFlyer Elite Gold status is equivalent to Star Alliance Gold status and unlocks lounge access worldwide, provided you are travelling with a Star Alliance member airline. You will also receive an increased checked baggage allowance, plus priority check-in, boarding and baggage.
Stay Tuned: More Details To Come
At the time of writing, the links to apply for this brand-new card are not displayed on the Singapore Airlines website. The HSBC Australia site is also yet to receive details on their new card.
Therefore, lots of questions remain, and it looks like we will have to wait a few more days to find out the finer details of the HSBC Star Alliance Credit Card. Stay tuned for a full card overview once we know more…
