Paying for taxes with points!!

[leahm]

Just got this in my email:

New payment options for domestic taxes, levies and charges on Award bookings

From November 2006, Qantas will offer members the choice of paying for domestic taxes, levies and charges with either cash or Frequent Flyer points. This option will be available on Qantas domestic, Qantaslink and Jetstar domestic itineraries. The points option cannot be combined with international flight or partner airlines. The points payment option cannot be combined with cash and will only be available for online bookings

What responses?

LeahM

 

[oz_mark]

Some discussion has occurred on another thread:

http://www.frequentflyer.com.au/community/qantas-frequent-flyer/media-flyers-win-new-deal-7592.html

 

[JohnK]

What responses?

It is up to the individual and how they value their points. Most ff'ers do not use points for domestic award flights but some do not have a choice as they do not collect enough ff points for international award flights and use them for domestic award flights rather than have their points sitting around constantly being de-valued due to ff program 'enhancements'.

For me I would not normally use points for domestic award flights or to pay taxes. For example a one way SYD-BNE or SYD-MEL flight would require 8,000 ff points + ~$50 in taxes which you could now use 6,000 ff points (I hope this is right). All up return 'free' airfare for 28,000 ff points or to buy a return red e-deal would cost ~$230 SYD-BNE or ~$250 SYD-MEL.

With 60,000 points + ~$320 in taxes I can go to SIN, BKK or HKG return in peak season with the value of the airfare excluding the taxes ~$1200-$1500. Others would use their points for upgrades to business class on long haul flights for better return.