'Free flights' schemes

Are they worth it?

By far one of the most popular incentives offered by credit cards today is the free flights scheme. Originally introduced by the Air Miles Company, many credit card providers have jumped on the bandwagon, leading to a rise in the number of credit cards offering such bonuses.

But are these schemes worth it? And just how much does it cost to gain a free flight?
Having compared the prices of some of the major credit cards offering this benefit, it is evident that the cost of free flights varies considerably from one credit card provider to another. To be awarded a free flight to Paris you could pay anything from ₤3900 with a Morgan Stanley buy and fly! card to ₤20,000 with the Citi A-Advantage Visa card. The difference in prices arise from the differing structure of point allocation systems. Whilst the Morgan Stanley buy and fly! scheme requires a fifth of the money that the Citi A-Advantage Visa card does, it has its drawbacks too. Points are redeemable only at a limited number of partner companies. In addition, Morgan Stanley’s points are valid only for two years. As a result it can take longer for points to be collected, resulting in the expiry of points before a flight may be earned. In contrast, the Air Miles Company awards points at a wider selection of outlets and allocates double points at major stores. As a further incentive Air Miles offer an instant 200 free miles upon opening an account with them.