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.”
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.”