Thanks to Ansett, and all the members who have taken the time to ask Lesley and her team questions about Qantas and the Frequent Flyer program.
As you know, the questions asked spanned across our broader Group, and so we sought input from a number of stakeholders in order to provide a considered response.
We have now consolidated the answers, and provided as much detail as we can in response to questions posted below:
Q1: What consideration is being given to Lifetime Platinum?
A: Qantas continuously reviews all aspects of the Qantas Frequent Flyer Program including long term loyalty. We believe Lifetime Gold is the appropriate offering in recognising long term loyalty.
Q2: QF has a higher points burn rate with OW airlines than with QF yet it has slashed the earn rates when flying on OW airlines. When one is trying to redeem, it seems easier albeit more expensive to do so on OW airlines versus QF why is that and how is that simpler and fairer?
A: For travel from 1 July 2014 changes to Partner airline earn applied to Status Credits only.
Q3: Given QF is a founding Member of OW, why do you penalise members for flying OW especially where QF has no flights i.e. International out of Perth or Adelaide?
A: Members have the ability to fly on Jetstar,
oneworld and Qantas marketed Emirates operated services to/from Perth and Adelaide. In addition to these services, Qantas codeshares on services operated by China Southern to/from Perth. Minor changes applied to Status Credit earn were as a result of transitioning to a zonal framework. We introduced a new earn category on the Qantas and Jetstar earning table from 1 July 2014 that provides higher Status Credit earn rates for more flexible fares including a new earn category, Economy Saver. Members flying from Perth and Adelaide can earn more on Qantas marketed flights this way.
Q4: QFF is reported to be the most profitable part of QF. Where does QFF gain most of its revenue from? Is it from selling points to commerce and grocers etc.
A: For information on the economics of the Loyalty business, please refer to the Qantas Airways
Full Year Results ending 30 June 2014.
Q5: The simpler and fairer campaign has been shown not to be so with many FFers confused and despondent. When will it get simpler and fairer?
A: We understand from feedback received from some Members that there was confusion in relation to this campaign. Based on our Members’ feedback, we recently made improvements to the earn calculator and earn panel in the booking flow on qantas.com. Look out for further improvements over the coming months.
Q6: What impact is QF expecting or seeing from Status Members dropping from say WP to SG over the next 18 months now that it is harder or impossible to achieve since the changes for many people. Current pole on AFF shows around 50% of people that responded to be expecting to drop at least one level. Many are now making other choices rather than chase status with QF whereas before they would try to get to that next level.
A: Recent program changes will impact Members differently in relation to Membership Status. Some Members will find it easier and faster to earn Status Credits due to the increase in Status Credit earn on flexible fares. Members can optimise earn by choosing Qantas or Qantas code (QF flight number). We continue to introduce more Qantas codeshare services operated by partners such as Bangkok Airways and Westjet which provide greater opportunity for our Members to book flights with a QF code to earn more Status Credits.
Q7: Given what was considered to be a relatively small uptake of MASA in the grand scheme of things why did QF remove this feature which was considered by many to be the best feature of the program? Would it not have been better to simply manage this via Yield management or perhaps reprice the monetary contribution?
A: We launched the new qantas.com booking engine in June 2013 which offers Members the ability to compare and book Classic Awards and other fares. This change made it impossible to continue to offer MASA online. The change to the booking engine was a result of feedback received from Members wanting Qantas Frequent Flyer to improve visibility and use of Classic Awards. We understand a small number of members have been negatively impacted by the change whilst the benefits of our new booking engine are benefiting our broader base.
Q8: The new earnings calculator is excellent when can we expect to see the same for redemptions and when will the rate be dropped in line with simpler and fairer.
A: We are pleased to receive positive feedback regarding the new earning calculator on qantas.com. Like all aspects of our Program, the online functionality is continuously under review and where we can, we will make relevant changes and improvements.
Q9: Catering has been somewhat disappointing to say the least over the last few years especially Breakfast, how is QF going to reverse this and when?
A: In March this year we launched a number of improvements to our Business class breakfast offering for flights departing Asia. Our breakfast offering was redesigned to include the addition of Brookfarm muesli, our signature breakfast energisers, seasonal fruit, and a baked egg dish, (classic dishes including Mushroom and Pancetta with a tomato relish). The changes maintain a service that allows our passengers to maximise rest when on board. Since launch we have seen a significant increase in customer satisfaction.
Q10: Based on various conversations P1 has not met the expectations of the hype for many. Other than the changes announced this week what plans does QFF have to improve this, have you or are you considering perhaps offering Confirmed Upgrades at time of booking for international or perhaps a guaranteed number of upgrades per annum?
A: The new Platinum One additional benefits recently announced were based on feedback from Members and continue to be very well received. The changes are part of the ongoing evolution of the Platinum One tier and we are on a constant quest to make improvements to the recognition and reward elements of the program.
Q11: Members were told that QF was reviewing the reduced S/C earn on OW flights to/from Destinations that QF does not fly to. What was the outcome of that review?
A: We continue to monitor feedback from Members and review this.
Q12: What plans are in place to build a J lounge in Perth and Adelaide Domestic?
A: Construction of a new Qantas Business Lounge at Qantas Domestic Perth has commenced and is due to open in mid-2015. The next generation lounge will include a new dining experience, distinct quiet and social areas, a work area zone and conference facilities, full shower and bathroom facilities and capacity for 360 customers. Qantas Platinum One, Platinum and customers travelling in Business will have access to the new domestic Lounge. There are currently no plans for a Business Lounge for Adelaide.
Q13: Given SQ/VA announcement re interchange ability of points for award flights and upgrades between the two programs when will QF FFers and EK FFers be able to this especially from say Perth and Adelaide where members do not have the ability currently to use points to upgrade internationally thus devaluing the program in people’s eyes.
A: We continue to work closely with our partners, including Emirates, and will make changes and improvements when and where we can.
Q14: What is the normal Gestation period for program enhancements, changes between review and implementation? We ask based on the assurance that MASA where here to stay then very shortly thereafter Bang Gone.
A: It depends on many things including the nature of the change, the competitive environment and Member considerations.
In relation to MASA, Qantas advised that the product was under review in August 2013; announced the removal on 28 March 2014 to be effective 30 June 2014, giving Members time to adapt to the change.
Q15: Is QF considering selling S/C as an additional revenue stream either direct by way of additional cost on Classic awards as per say a JQ Bundle or perhaps indirect via Credit Card Promotions such as VA has done?
A: There are currently no plans to sell Status Credits as an additional revenue stream.
Q16: A lot of frequent flyers like the family pooling at VA what plans does QF have to add this feature to QFF program?
A: Qantas offers our Members ‘Family Transfers’, the ability to transfer Qantas Points between Family Members. Due to Member feedback, we recently increased the number of transfers from 1 to 4 in any 12 month period of up to 100,000 Points per transfer. Overwhelming feedback from our Members is that tier recognition should be based on individual travel.
Q17: Under simpler and fairer LAX-JFK is classed as under 2500 miles and earns yet when redeeming it is classed as 2400+ miles why is there a difference between redemption and earning mileage classifications?
A: Under the new earn structure for Qantas flights, LAX-JFK earn is not based on mileage.
Q18: Why does JQ/3K SC Not Count towards P1 Qualification given that they are QF group companies and often booked under QF Codeshares.
A: Status Credits earned on Jetstar Group flights (JQ, 3K, GK) count towards the overall Platinum One Status Credit requirement. In addition, Status Credits earned on QF flight numbers (booked and ticketed on QF flight number) including services operated by partner airlines count towards the Qantas Status Credits requirement for Platinum One.
Q19: How does QF and QFF account for the good will / ambassadorship of High Tier Status passengers and the influence they have over non F/F choice of airlines and programs?
A: The additional benefits and services that Qantas offers tiered Members are offered in appreciation and recognition of individual loyalty.
Q20: Why is it that on a recent trip MEL-coughet via Singapore booked on a saver fare and a QF Codeshare no points or S/C were earned on the JQ/3K Operated sectors yet the Earn table tells us we would earn how is this simpler and fairer?
A: To earn Status Credits on Qantas codeshare flights operated by a Jetstar Airways Group flights, Members must book a Qantas flexible fare in Y, B, H, or K; or L class on a
oneworld fare.
Q21: Why can’t passengers pay all fees and taxes using points both domestically and internationally?
A: Members can pay all taxes, fees and carrier charges using Qantas Points when booking a Classic Award using the qantas.com commercial fare engine. Members are able to use Points Plus Pay to choose the combination of Points and cash to pay for taxes.
Q22: Why does QF require the recipient of a reward flight to be related to the account holder when it cannot realistically monitor it, why not make it simpler and fairer and remove this requirement?
A: Qantas can monitor the transfer and redemption of Qantas Points. The Qantas Frequent Flyer program is designed to award its individual Members. The extension of some Member benefits to Eligible Family Members is considered a valuable benefit of the program.
Q23: Given the above requirements to transfer redeem points for reward flights and upgrades how does the Aquire program get around this?
A: Unlike the Qantas Frequent Flyer program, the Aquire program is designed to benefit businesses.