Avianca LifeMiles introduces new points transfer relationship with Gol Smiles

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Avianca LifeMiles introduces new points transfer relationship with Gol Smiles

Research

Gary Leff Chief Financial Officer | View from the Wing

By Sky Industry News

Jul 11, 2024

Star Alliance frequent flyer program Avianca LifeMiles is testing points transfers with Brazilian carrier Gol, which may have significant implications.

"We have good news for you! You have been selected to participate in a pilot test for a new benefit. Smiles will soon be offering this opportunity to a select group of members as well," stated the announcement. Starting today, members can convert their miles from LifeMiles to Smiles, the loyalty program and currency of Avianca’s sister airline GOL. Members need a Smiles account to convert their miles; non-members can join for free.

LifeMiles describes this as "a temporary benefit" that they "will evaluate the results in a few months," with the intention of making it a permanent feature. Points currently transfer at a 1:3 ratio, but this may be adjusted monthly during the test period.

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For instance, if 150,000 Smiles are needed for redemption and the exchange rate is 3:1, then 50,000 LifeMiles must be converted. Once converted to Smiles, these miles must be used within 12 months before they expire. If not used, they can be converted back to LifeMiles at the prevailing exchange rate before expiration.

American Airlines and Gol have an exclusive partnership over Brazil and have developed joint frequent flyer programs and credit cards while offering elevated elite benefits between carriers. This arrangement presents potential arbitrage opportunities—occasional American Airlines flyers can move points into a Star Alliance program (LifeMiles), and occasional Star customers can credit to LifeMiles with the option to redeem with American Airlines. This scenario mirrors Aer Lingus's partnerships with both United and British Airways.