Does the Star Alliance Credit Card offer a Welcome Bonus? Sort of, but not everyone can qualify. I will get to the qualification in a minute, but for those not familiar with the card here are the basics :
- The Star Alliance Card is issued by HSBC and is exclusively available in Australia.
- The card carries $450 in Annual Fee which is waived in the first year. It also charges a 3% foreign currency transaction fee.
- Although there is no publicly available Welcome Bonus (in terms of points), the card offers Star Alliance Gold status in Year 1 upon meeting the minimum spend of $4,000 within 90 days of opening the card.
- The card earns 1 Star Alliance Point per $1 on spends of up to $3,000 per month and 0.50 point per $1 thereafter, uncapped.
- You can transfer Star Alliance Points to most airline partners in the ratio of 1:0.80 (1 Star Alliance Point = 0.80 Airline Point) as can be seen below.
Star Alliance Transfer Partners
Welcome Bonus
The most disappointing aspect of the card is a lack of welcome bonus. Yes there is an opportunity to earn Star Alliance Gold status and the annual fee is waived for 1 year, even so, what points and miles collectors covet the most is bonus points, and this is where Star Alliance have dropped the ball, or have they??
Swap Star Alliance Gold for 40,000 Points
When I first heard the rumour about cardmembers being able to swap status for points, I ignored it. Then I came across forums where the topic was being feverishly debated, so I decided to investigate.
Buried deep inside Star Alliance Rewards Program Terms & Conditions, I stumbled upon this piece of information;
As you can see in the part I have highlighted above in red, it is possible to swap Star Alliance Gold status for 40,000 Star Alliance Rewards Points, but there is a catch. This option only seems to be available to cardmembers who already hold Star Alliance Gold status by the virtue of holding a status equivalent to it in a partner Frequent Flyer Program.
Furthermore, you are still required to meet HSBC’s own condition to earn Star Alliance Gold, meaning you cannot simply apply for the card and ask for points. The points can only be awarded after you have spent $4,000 within 90 days and qualified for the status as per HSBC card terms.
Seeing that all of this can be confusing and may overwhelm some people, let me break it down a little. To receive 40,000 points in-lieu-of Star Alliance Gold Status;
- You must already hold Gold status with one of the Star Alliance Rewards Program airline partner and designate them as the Participating Frequent Flyer Program in which you wish to be awarded the status.
- You must spend $4,000 on eligible purchase within 90 days of getting the card.
- Upon qualifying for Star Alliance Gold, you must request that 40,000 Star Alliance Rewards Points be credited to your account instead of the status.
Star Alliance Gold courtesy KrisFlyer Program
Back in the dark days of Covid-19, Singapore Airlines’ KrisFlyer Program ran a promotion where members could earn KrisFlyer Gold status (and by extension Star Alliance Gold) without ever setting foot on a plane.
All you had to do was transfer the equivalent of 250,000 KirsFlyer Miles into your account. Read more on that promotion over here. The status was initially granted for 12 months, but was later extended for a further 12 months. A lot of Australian’s at the time participated in the promo meaning they currently hold KrisFlyer Gold status which is valid until February 2024.
If you took advantage of that promotion and are interested in getting the Star Alliance Card, you are able to request a credit of 40,000 Star Alliance Points to your account in-lie-of the status, as long as you nominate KrisFlyer as the Participating Frequent Flyer Program.
Spending 40,000 Star Alliance Points
Barring Air New Zealand Airpoints, the 40,000 Star Alliance Points can be transferred to any of the remaining 6 airline partners in the ratio of 1:0.80, giving you 32,000 points in a Frequent Flyer Program of your choice.
While a lot of people will naturally gravitate to KrisFlyer and that’s fine, I suggest you don’t discount the likes of Aeroplan and United Mileage Plus as they can potentially be much more valuable.
I have written extensively on programs such as Aeroplan and South African Airways Voyager and many of the redemption sweet-spot they offer. As a matter of fact, it is cheaper redeeming Aeroplan points to fly Singapore Airlines Business Class than KrisFlyer Miles. This is also true for many other Star Alliance carriers.
Fly Singapore Airlines Business Class between Australia & Singapore for 45,000 Aeroplan Points
Although a case can be made to transfer these points to any number of programs, at the end of the day the best program is the one that works for you.
In Conclusion
While there is no publicly available Welcome Bonus on the Star Alliance Credit Card, it is possible for existing Star Alliance Gold members to earn 40,000 Star Alliance Points. These points can be converted into 32,000 points in a Frequent Flyer Program of your choice.
With the $450 annual fee waived in the first year and the card offering access to programs which are generally difficult to access for Australians, it might be worth taking another look at the card and see if it aligns with your travel plans in 2023.
What are your thoughts on the Star Alliance Credit Card? Leave a comment below.
