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British Airways is facing a challenge to its Air Miles loyalty

scheme as rival airlines gear up to launch a competing rewards

programme.

Twelve airlines, including British Midland and American Airlines, are

joining forces to launch Buy and Fly!, which will offer frequent flier

miles to UK consumers.

The Buy and Fly! scheme will be operated by specialist travel promotions

firm Landround, with the 12 airlines splitting the marketing costs.

An industry source said: ’Buy and Fly! is designed to operate on the

same scale as Air Miles.’

Consumers will collect frequent flier miles through purchases made at

partner companies. Buy and Fly! will announce partnerships with several

companies, including a large retailer and financial services company

this month.

The other airlines involved are Canadian Airlines, Cathay Pacific,

Delta, Iceland Air, Jersey European, KLM/Alitalia, Sabena, Singapore

Airlines, Swiss Air and Virgin Express.

Travellers will not be able to collect Buy and Fly! points on flight

purchases initially but it is looking at introducing this later.

Consumers will be able to spend Buy and Fly! points via an internet

site.

American Airlines, Canadian Airlines and Cathay Pacific are part of the

Air Miles scheme, through BA’s Oneworld alliance. But the two schemes

will use different partners.

Buy and Fly! will launch within the next two months. An ad agency has

yet to be appointed. Buy and Fly! will be managed by Landround directors

Michael Crompton, David Lyne and Tina Mills, but it may appoint a

marketing director later this year.