Miles & More

Miles & More is the frequent flyer program of Lufthansa, which was launched on 1 January 1993 and since then have joined the other airlines.

• 4.4.1 Taxes and fees on free flights
• 4.4.2 Monetary value of miles
• 4.4.3 mile devaluation

• 5.1 Frequent Flyer Status on Star Alliance

• 6.1 Transferability of Miles
• 6.2 Private use of official miles acquired
• 6.3 Admissibility of premiums
• 6.4 taxation

Participating companies

In addition, Lufthansa has nine other carriers Miles & More. These are Austrian Airlines Group (since 2000), Swiss ( since 2006), Air Dolomiti (since 2008), and German Wings (since 2010), which have become through acquisitions to Lufthansa subsidiaries, Brussels Airlines ( since 2009) and Luxair ( in which Lufthansa holds investments since 2009), and independent of Lufthansa Star Alliance members LOT ( since 2003), Adria Airways (since 2005) and Croatia Airlines ( since 2005). Depending on where the member a Miles & More card with appropriate design will be handed out. For example, receives an exemplary living in Germany member a Miles & More card with the motive of Lufthansa.

Operator

The program is run by the Miles & More International GmbH, headquartered in Neu-Isenburg. This GmbH is a 100 % subsidiary of Lufthansa AG.

User

In March 2014, the program had more than 25 million subscribers.

End of 2012, the Miles & More program had 23 million participants.

In February 2011, the program had 20 million participants, including 6 million in Germany and one million in Switzerland. After that time information every day would be an average of 5,000 new members are added. According to information provided by the operator, the average age of participants is 40 years. 62 % of users are male, 38 % female. In 2010, the participants collected a total of 198 billion miles. The end of 2012 decreed Lufthansa customers over 205 billion bonus miles. The Company recorded the value internally to 1.66 billion euros ( Deferred ). About 20 to 30 percent of the miles are not used.

On the number of members of the highest status, HON Circle Members, Miles & More International is silent. In March 2007, it should have been about 3000 HON Circle members. Current estimates from a number of 2000 to 4000 in 2011.

Mileage

The unit of account of the program are " miles". These are divided into Level Miles and Award Miles. Miles are personal. They are not transferable to other participants.

Bonus Miles expire after 36 months, unless the owner has a status, a ( paid ) Lufthansa credit card or is under 18 years old and has a Jetfriends card.

Status miles

Status miles are used for determining the frequent flyer status. These can only be purchased with purchased and flown flight tickets with Lufthansa, Swiss, Austrian, German Wings and other Star Alliance partners. These expire after one calendar year.

" HON Circle" Miles

The " HON Circle" miles are a special kind of status miles. For this collection the possibilities are more restrictive than for normal status miles. Collect a customer in two years HON 600,000 miles, it shall receive the HON status as the highest frequent flyer status of Lufthansa. September 1, 2012, this HON miles can be acquired only in the business and first class.

Bonus Miles

Award miles can be redeemed for flights and merchandise awards. The acquisition of status miles results in a credit of award miles in the same amount. In addition, miles can be collected and redeemed also eg hotels, car rental companies, Travel Value and Duty Free Shops or Lufthansa 's World Store (2008 total, over 200 partners worldwide, as of July ). They usually lapse after three years at the end of the quarter. Award miles of state customers (Frequent Traveller, Senator, HON), owners of a Lufthansa Miles & More Credit Card do not expire.

Acquisition of miles

Miles are primarily collected by flights, but also through credit card transactions. Other sources include bonuses for special customers, telephone services, bonuses for special flights, hotel bookings, purchases and car rentals.

The number of miles credit for flights depends very strongly on the booking class. Thus, in higher classes generally more miles will be credited as in the lower. Similarly, a distinction is made between individual rates. As a basis for the calculation usually fixed mileage levels are unrelated to the actual distance traveled. Also no miles credited - For flights with partner airlines are sometimes - depending on the booking class.

On European flights flat rate is obtained for each flight depending on the booking class between 125 and 2,000 miles. On intercontinental flights is obtained per booking class 0.5 - 3 times the great circle distance in statute miles. The minimum amount of 500-1500 miles will be credited on those flights.

Physicians who identify themselves as such before the flight can receive additional bonus miles.

Redeem miles

The award miles eg seat class upgrade ( Economy → Business → Business or First Class ) or award flights can be booked. Originally these were the only uses. An upgrade is always possible only by one class.

The suitability for an upgrade depends on the booking class, for which there are separate rules with the participating airlines. In some " cheap " booking class upgrade is excluded. Since May 2008, the redemption is also available for airport taxes and charges on intra- European flights possible, contributing to re- win the golden " Freddie " at the Freddie Awards Frequent Flyer programs. Additionally, you can miles donate to charities, but these donations are 10,000, 20,000 or 50,000 miles set.

With the growing supply of " miles - revenue " grew gradually take uses. So you can today, provided enough miles, also pay all travel, rent car, the Lufthansa World Store or in the Travel Value and Duty Free Shops shopping at many airports. Especially for redeeming award miles for hotel and car rental reservations Miles & More offers its subscribers since August 2011, the online booking platform " Hotel & Car Awards" to.

Taxes and fees on free flights

Flight awards are not really free flights, because in addition to the appropriate award miles on the normal taxes and charges are yet to be paid. Only the booking fee is waived. For example, does a flight award Frankfurt- London ( direct flight, including return flight) 15,000 award miles in tariff Fly Smart, taxes, and fees of around 127 euros (as of February 2011). International flights have taxes and fees of up to 400 euros, because Lufthansa hides the fuel surcharge in these fees and applying for award flights.

U.S. carrier in the Star Alliance ( U.S. Airways and United Airlines ) does not require typically this fuel surcharge for award flights.

Monetary value of miles

The monetary equivalent of a mile for a customer can be due to different bonuses in exchange for a lump sum einzulösender not exactly quantify. He is, one takes as premiums " Coupons " or " financial services" as a measure to about 0.3 cents per mile. Assuming, however, flight awards as a benchmark, it is clear with about 3 cents / mile one ten times as high value. Award miles can also be purchased directly. Here, the prices from 2.42 to 3.5 cents per mile are. In proceedings before the Regional Court of Cologne ( Az: 14 O 245/11 ) put the Lufthansa 2011 the miles value by 2.77 cents. Internally presented the Lufthansa in 2008 still 0.73 cents per mile as a provision in its balance sheet a. In your Annual Report 2012, the Lufthansa rated one miles on average only 0.31 cents.

Miles - devaluation

Early December 2010, Lufthansa informed about changes in the online catalog Airline Rewards January 3, 2011. Due to the change in the required miles for intercontinental business class flights by an average of 15% and for intercontinental First class flights were increased by an average of 20 %. The Airline Rewards maturity for continental European and domestic flights as well as for intercontinental flights in economy class remained unchanged. This meant that the value of each mile fell accordingly.

A frequent flier complained in 2011 before the Regional Court of Cologne against the devaluation of its mileage account. The district court ruled in favor of the frequent flyer. The company should have announced its new conditions with a lead time of four months in order to avoid discrimination. The Lufthansa would have on all purchased by the plaintiff before the changeover miles must continue to apply the old premium rate.

This judgment put Lufthansa appealed to the Higher Regional Court of Cologne. This overturned the judgment of the district court and ruled in favor of Lufthansa. Immediately prior to the expiration of the statutory period, Lufthansa reached agreement with the plaintiff. Lufthansa undertook to announce future changes in the Miles & More bonus program for at least 3 months in advance. In return, the plaintiff waived further legal action against Lufthansa.

Frequent flyer status

Miles & More has five categories of participants:

• Provisional members receive a blue "Miles & More" Paper card when registering by paper form.
• Base members from the first mile (blue card or old gray card)
• Frequent Traveller, from 35,000 status miles per year. Valid for two calendar years. The 35,000 status miles must be purchased for the continued existence of the state in one of the two calendar years prior to the expiration of the status. In addition, there is still the possibility since 2010, more than 30 so-called segments ( flight segments or status -related flights) with certain airlines to reach or extend ( silver card / silver card ) status.

• Senator, from 100,000 status miles. Valid for two calendar years. The 100,000 status miles must be purchased for the continued existence of the state in one of the two calendar years prior to the expiration of the status. It is possible to extend even without reaching the status miles Senator Status for a fee of 2,000 euros for a year. From 1 September 2012, living end, a Senator status to achieve in Germany as early as 100,000 status miles ( golden card ).

• HON Circle Members, from 600,000 HON Circle miles in two consecutive calendar years ( black card ).

Frequent Flyer Status on Star Alliance

The Miles & More status also extends to Star Alliance, in which Lufthansa is a member. The Frequent Traveller status is assigned here to the Star Alliance Silver status (* S). The Senator and HON Circle status is recognized as a Star Alliance Gold status (* G).

Miles can be collected usually on flights operated by Star Alliance; be individual booking classes are excluded many airlines. Earning reward flight is possible with all Star Alliance members - but not all partner airlines. An upgrade of the class of travel by award miles can be done in many Star Alliance airlines.

Terms of Use

Transferability of Miles

In June 2013, the Higher Regional Court of Cologne clauses in the terms and conditions of the Lufthansa declared invalid, according to which premiums given away only to friends and relatives, not likely to be sold to Third Parties. Lufthansa announced to appeal to the Federal Court.

Private use business miles acquired

On the question whether acquired Miles can be used for private business trips in the Miles & More program or not, the Federal Labor Court ruled in April 2006 in favor of the employer. Thereafter, the employer may require to issue the miles acquired on business trips and especially to use in the interest of the employer.

Bonus miles affair became known in 2002. Here, to the conduct of various member of parliament has been criticized that used Acquired on business trips bonus miles according to the regulations for private flights. On the other hand, data protection in dealing with the bonus miles evaluation has been criticized.

Admissibility of premiums

The Association against the mischief in trade and commerce complained in 2001 against their opinion illegal premiums away from the core business of Lufthansa. The Cologne Regional Court gave this lawsuit initially in the first instance rather, the Court of Appeal rejected the other hand, in the second instance those cases.

Taxation

The acquired business trips bonus miles and the premium received for it is a taxable benefit in kind. First, the Lufthansa took over the taxes due thereon. This amounted to 2002 flat rate of 2 %. 2008, the Federal Ministry of Finance regulated for the first time in the payroll tax guidelines dealing with bonus miles. Therein, a flat tax rate of 1.5 % was determined. In 2012, the flat tax rate is in accordance with § 37a of the Income Tax Act for bonus miles 2.25%. The tax base is the value of the premiums.

Cooperation with railway companies

In early 2000 ran talks between German railway and Lufthansa to make train journeys collecting capable. From 1 March 2001 as part of a pilot project for selected trains of Deutsche Bahn (ICE Sprinter, Metropolitan, AIRail trains) bonus miles could be collected. Especially organized shutdown of rail lines was also a long time as a way to relatively quick and cheap to buy bonus and status miles. However, the Lufthansa stopped by a change in the terms and conditions of this method.

Since December 11, 2011, Austrian private railway western railway cooperates with the Miles & More program. Per euro ticket sales, the customer receives two award miles.

Passengers arriving by City Airport Train to Vienna International Airport, can get three bonus miles for online bookings per Euro revenue.