FF Partnerships: How do they work?
I can't figure out how partnerships between FF programs work. How is the deal structured so that each airline gets burdened fairly by redemptions? Do AA and Cathay Pacific, for example, agree to pay each other compensation for each cross-club ticket issued? And if that compensation is cash, doesn't that partially defeat the business goal of a FF program (gaining loyalty with non-cash future benefits)? Or is there simply a formula that sets aside a maximum numbers of seats on each qualifying flight for partner awards? Any method I come up with seems fraught with the potential to be lopsided.