Why Do Competing Airlines Allow Reciprocity for their Frequent Flyer Miles?

Why Do Competing Airlines Allow Reciprocity for their Frequent Flyer Miles?
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1 Answer

Answer :

United and US Air offer routes that Continental doesn’t. By working together, they can drive business to each other against other airline alliances. For instance, United does the West Coast pretty well, and so does Alaska. Continental helps United get passengers to the southeast, which is Delta country, while Alaska routes Delta customers along the west coast. Airline alliances and code-sharing provide a lot of savings on routes that individual airlines may not be able to fly.
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