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China Southern to Leave the SkyTeam Alliance
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The SkyTeam alliance is losing one of its member airlines. Effective Jan. 1, 2019, China Southern will leave the alliance, instead choosing to meet the needs of its own development strategy.
According to a source at the airline and reported by Reuters, the airline is leaving because it believes it's too expensive to be a member of the alliance, relative to the benefits it gets in return for being a member. The source added that the airline will consider joining the Oneworld alliance, but it has not yet made a decision. China Southern is the largest airline in China by passenger numbers.
Cathay Pacific, the Hong Kong-based carrier that's a founding member of the Oneworld alliance, has the right to veto the entrance of a new member airline from the greater China region, said two sources familiar with the matter. China Southern, which is based on the southern Chinese city of Guangzhou (CAN), competes directly against Cathay for traffic in the region. The two cities are located just 84 miles apart.
China Southern said in a statement to the Shanghai stock exchange that it did not expect its exit from SkyTeam to significantly impact operations. SkyTeam said that it's working with China Southern to ensure a seamless transition for both other members and for customers. The process will be completed by the end of 2019.
Remaining SkyTeam members after China Southern's departure include: Aeroflot, Aerolineas Argentinas, Aeromexico, AirEuropa, Air France, Alitalia, China Airlines, China Eastern, Czech Airlines, Delta, Garuda Indonesia, Kenya Airways, KLM, Korean Air, Middle East Airlines, Saudia, Tarom, Vietnam Airlines and Xiamen Air.
Xiamen Air, which is a subsidiary of China Southern, said that it has no plans to leave the group.
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At this point, it remains unclear what China Southern's exit from SkyTeam will mean for flyers — especially in the near term. Because there are strong ties between SkyTeam carriers, such as reciprocal benefits, codesharing, ticketing and more, there is plenty to be worked out between the two groups.
Since the official exit won't take place until Jan. 1, 2019, if you have travel booked with China Southern for the remainder of 2018, there should be no impact on your flight. In addition, there's the possibility that no changes to earning miles and elite status credits could take place until the end of 2019. Though those details remain unseen.
China Southern's exit from the SkyTeam alliance comes on the heels of Qatar Airways threatening to leave the Oneworld alliance. The airline's CEO Akbar Al Baker has threatened three times since October to leave the alliance because other member airlines are not playing fair.
China Southern flies nonstop to New York (JFK), Los Angeles (LAX) and San Francisco (SFO).
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Best for dining at restaurants
TPG Editor‘s Rating
Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.