[redrat]

I just got this notification of the ASX and it poses some interesting thoughts...

SUBJECT Relaunch of customer loyalty programme
Air New Zealand today announces enhancements that make Airpoints one of the world’s most innovative and attractive airline customer loyalty programmes.
Managing Director and Chief Executive Officer Ralph Norris says one of the key features of the enhanced programme is that Airpoints members will be able to book any seat on any Air New Zealand ticketed and operated flight.
From 16 November, Air New Zealand Airpoints Dollars ( ) will replace Airpoints as the programme currency.
Able to be used just like cash when booking seats, one Airpoints Dollar will be equivalent to one New Zealand dollar, with members able to choose from every seat, every flight, on every Air New Zealand ticketed and operated flight. More than one million Air New Zealand customers are Airpoints members, with 780,000 of these living in New Zealand.
On 16 November, all members’ existing Airpoints balances will be converted to Airpoints Dollars with 75 Airpoints equating to one Airpoints Dollar.
Mr Norris says the conversion ensures that the vast majority of journeys that could have been taken by Airpoints members with their reward points can still be taken with their new Airpoints Dollars balance.
“As well as being able to purchase any seat, 61% of flight redemptions will require fewer equivalent points to purchase the lowest fares and 15% of redemptions will require the same number of equivalent points.”
Overall, the number of Airpoints Dollars required at the lowest published fare to obtain the flight redemptions taken in the past 12 months will be an average 6% less than the equivalent number of Airpoints required under the old programme,” says Mr Norris.
As an earning rate example, a return flight between Christchurch and Auckland costing 20,000 Airpoints would convert to 266.67 Airpoints Dollars. A standard return Smart Saver fare is available from as low as 172 Airpoints Dollars, representing a saving of more than 94 Airpoints Dollars. Sale fares will provide even greater savings.
Mr Norris says the new programme is designed to more fairly reward frequent flyers.
“Under the existing programme, Airpoints are rewarded based on distance flown, rather than the fare paid. An Airpoints member currently paying around $2,400 for a discount economy return flight to London would receive 26,966 Airpoints, rewarding them with a return domestic flight (20,000 Airpoints) or nearly enough for a return trans-Tasman flight (30,000 Airpoints). However, to earn the same rewards, a frequent domestic customer would have to fly return between Auckland and Wellington 14 times at a cost of at least $3,900,” says Mr Norris.
Under the new scheme, dollars spent on travel will be recognised ahead of distance flown. This means there will be greater earning potential on most domestic, Tasman and Pacific Island fares, but lower earning on long haul discounted economy fares.”
Mr Norris says the enhanced Airpoints programme is a further reflection of Air New Zealand’s commitment to being innovative, efficient and nimble.
“For an airline to survive in this fiercely competitive era of air transport, it must always strive to stay a step ahead of the competition, while at the same time delivering maximum value to customers and shareholders.
“Today’s announcement is a further signal that Air New Zealand is committed to delivering innovative product offerings.”

[arun]

It will be interesting to see, how they will look at points to be earned on *A partners flights. Will it be still based on the fare paid?

[dajop]

Interesting development. This values points to 1.2c (Australian) per point. I think I'll stick to QF, where I aim to get at least 1.5-2.0c per point.

[redrat]

Are you sure you're really looking at the real value?
I've just been across to the FT site & there's not much talk there yet. I went to the Air NZ website & the FAQ's are excellent.

Think about the fact that any seat can be purchased with the Air Dollars (AIRBUCKS as one FT'er put it). There are no blackouts, no restricted seats.
You can use the AIRBUCKS across the *A (with a small handling fee). I'm almost in a mind to pay the $50 NZ and join. All I have to figure out is if I can wangle a txfr of my UA & SIA points. I don't even mind losing points in the changeover.

[dajop]

Maybe because I'm Platinum, I don't have a huge problem with award seat availability on QF, and in fact in my last Y redemption got nearly 3c/point value out of it. For the average punter though, it is probably quite a good system.

[clifford]

Hi All,

Personally, I wouldn't touch this new NZ FF scheme with a barge pole. Linking benefits to the amount of money paid? Who would go along with that?

There are much better FF schemes available (eg many of the other *Alliance airlines), where you can get full mileage credit for discount fares. Don't be fooled into thinking that awards are impossible to redeem via the *Alliance (if you think they are, please ask me and I will explain how this is not so). And furthermore, why would anyone actually PAY to join a frequent flyer scheme?

In my opinion, this is just a ploy from a cash-strapped airline to further reduce the benefits to its frequent flyers.

Regards,
clifford.

[pomjim]

G'day
Well, by my reading, it would appear that the new scheme is better re. redeeming points on other airlines.

Example: now, 90,000 points Brisbane-Asia return. With the "airbucks" scheme, 910 return, needing 68040 airpoints.

Or have I got it wrong?

[thadocta]

More disinformation from clifford.

He seems to be ignoring the fact that most carriers base the number of points you get on the fare that you paid. I as a QF FF for example get less points on BA in N than I do in Y. I get more points in J, and even more in F.

Having looked at the points earning table, there is nothing even remotely radical in it, it is fairly similiar to most other airlines (even his beloved Star Alliance airlines).

What IS radical about this proposal, and which he singularly failed to address, is the award redemption function, which is, I believe, unique (and should be emulated).

You have 347 AIRBUCKS? The fare is $NZ347? Bingo, it is yours, no stuffing around with whether there ar any redemption seats available and so on.

QF is criticised for only having one or 2 F seats open per flight, under this scheme, someone with sufficient points could book out the entire F cabin if they so wanted. Nothing I can see would prevent this, if the seat is there you can have it.

Bring it on to other carriers is what I say.

(We now return you to clifford's disinformation.)

Dave

[kristo]

The only way to properly compare the current scheme with the new one is to do just that, compare.
For example, currently it costs 30000 points to fly SYD to New Zealand, say Christchurch.
Under the new scheme 30000 points gives you 357 airpoints dollars.
Using Air NZ Smart Saver airfare it would cost 418 airpoints dollars return,so you would need the equivalent of approx 35000 points which is 17% more than the current scheme.
It looks like we are being taken advantage of , doesnt it?
Any comments?

[Kiwifruit]

OK Kristo lets revisit your example, by my calculation at the rate of 75 airpoints per airpoint dollar, 30,000 points equates to 400 airpoint dollars, not 357 as you state (I suspect you may be using some exchange rate conversion factor though its not entirely clear from the ANZ press release how they intend to take into account disparity between the currencies). In any event the cheapest fare I have found on the ANZ website (excluding taxes which were always additional) is AU$358 which would seem to suggest in this case the status quo has at least been maintained so far as the cost of award travel is concerned.

In my opinion the real benefit of the new scheme lies in its flexibility being able to purchase any seat on any flight using airpoint dollars rather than being limited to a few seats on each flight. Haven't attempted the conversion for other routes but attach following from ANZ press release:

<Mr Norris says the conversion ensures that the vast majority of journeys that could have been taken by Airpoints members with their reward points can still be taken with their new Airpoints Dollars balance.

"As well as being able to purchase any seat, 61% of flight redemptions will require fewer equivalent points to purchase the lowest fares and 15% of redemptions will require the same number of equivalent points."

Overall, the number of Airpoints Dollars required at the lowest published fare to obtain the flight redemptions taken in the past 12 months will be an average 6% less than the equivalent number of Airpoints required under the old programme.>