What Do Free Tickets On Other Airlines Cost Us?

[Revolutions]

Just as nothing in life is free, so goes for award reservations booked by USAirways on other airlines.

Can anyone enlighten me as to approximately how much US has to pay other airlines for Dividend Miles award reservations?

Example: DCA-SFO on a first class DM award ticket issued by US on UA metal . Does US pay UA $200, $400, $800 or more for this ticket?

Also, I am assuming that, in this example, UA would only be paid after travel has been completed?

Thanks for any info you can provide. . .

 

[TomBascom]

My pool position is $30 to $50 for a domestic F seat. $20 to $30 for domestic coach.

 

[whlinder]

You are correct in assuming that UA would not get paid until travel is complete. I am pretty sure that whatever agreement US and UA have is confidential, as for free tickets the proration would be whatever is agreed upon between the two parties as opposed to industry standard proration based on IATA prorate values and the fare paid. But UA wouldn't get paid $50 or $500 the next day; UA would bill US, and at the end of the month they do interline settlement and settle on a difference. So if at the end of the month US charges UA 90 mil and UA charges US 100 mil, US pays 10 mil to UA.

 

[reznc]

All the airlines have different rates in the Star Alliance for our cost for award seats, and CCY is pretty tight lipped about actual costs. I have tried to find out when challenging some crazy "legal" routings.