Originally Posted by
florin
Now think of airlines and FF partnerships. If 2 airlines are partners, it makes sense for them to share award inventory. I.e. all award seats are available to members of both FF programs. Why would they bother paying each other? It sounds like a complicated, unnecessary exchange. Those seats would be empty anyway. Why keep swapping around small amounts of money, when it will likely pretty much even out in the end?
It sounds like airlines do have to pay -
http://online.wsj.com/article/SB1000...719220624.html
"When airlines let you use your miles on partners, they typically end up having to pay the partner for providing the transportation. So it can be cash out the door.
A spokesman for United says Star Alliance members set the price United must pay for each award flight flown by a member of United's Mileage Plus program. "