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Credit card customers to reap frequent flier benefits

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HONGKONG Bank and Citibank have taken the battle for dominance of the credit card market to the skies, by linking spending on their cards to airline frequent flier programmes.

Another major player, American Express, is believed to be close to announcing a similar deal.

Hongkong Bank has teamed up with United Airlines, giving holders of the bank's Visa, Mastercard and JCB Gold Cards a kilometre of free flight on the airline for every eight dollars they spend.

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The deal will be available from September 1 to all card holders in Hong Kong, and will soon be expanded to other Asian countries.

''This is a world first,'' said Mr David Solloway, United Airlines general manager in Hong Kong.

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''It is the only partnership between an airline and a banking group which involves all their credit cards, not just affinity or private label cards.'' But Citibank yesterday launched a similar scheme - called Preferred Passages and involving Cathay Pacific, Singapore Airlines and Malaysia Airlines - which it also claimed as a world first.

Citibank Gold Card holders who enroll in the programme will accumulate free kilometre credits if they charge their cards.

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