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THE FREQUENT FLYER GAZETTE   ::   APRIL 2006

CONTENTS ::
 
1. OzJet Collapses
2. Member's Talk
3. Travel News
4. Bank FF Points

 

Editors Note ::
 
Welcome to the April edition of the Frequent Flyer Gazette.

In what may be the shortest airline life-span OzJet has officially gone bust. This month we speculate as to why OzJet failed to compete in the lucrative business class market and discuss whether Australia is destined to remain a duopoly forever.

We also discuss the benefits for banks cashing in on the Frequent Flyer market or perhaps more aptly named the frequent buyer market.

This month is also packed full of the regular members insights and travel news.

Until next time, Happy Flying!

Leah
Editor, Frequent Flyer Gazette


  
1. OzJet COLLAPSES
 

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OzJet made Australian aviation history this month when it unceremoniously collapsed after just three months in operation, that�s the shortest life span for an Australian airline ever! Following in the footsteps of Compass Airlines that lasted only a year, Ozjet has returned the state of Australia�s aviation industry into a duopoly once again.

It seems in the current market climate to not have a Frequent Flyer program is to die. Owner, Paul Stoddart said the absence of a loyalty program was a major factor in the demise of OzJet. The focus on a niche market of business people, many of whom are vehemently loyal to Qantas was another prime factor leading to its demise.

It seems the offer of business class service at full economy prices did not have the requisite pulling power to attract customers. Some business analyst feel OzJet was immediately at a disadvantage; pitting eight return services a day against half-hourly peak departures by Qantas and Virgin. The rigid schedule did not give business passengers the chance of putting flights back if meetings ran late.

Furthermore OzJet entered the market in late November 2005, undoubtedly the quietest time of the year for business travel. They entered the market with no strong marketing campaign (no Magda!) and their 30-year-old 737 200�s dulled in comparison to planes flown by Qantas and Virgin Blue.

The airline was losing Stoddart up to one million dollars per week and he has reportedly lost an eight-figure sum on the venture. It seems his pockets weren�t deep enough and his passion wasn�t strong enough. Stoddart admitted last month to spending more time on his Formula One racing team rather then the airline. The airline is set to move into a new charter role with just two aircraft, leaving 70 of the 100 staff will jobless. It seems Virgin and Qantas are set to dominate the Australian market for the time being.

Read what our member think HERE.   

  


2. MEMBER'S TALK
 

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Sandpit Shenanigans

Everybody loves a bit of good-old fashioned banter, that�s why a brand new discussion topic has been launched. THE PLAYGROUND is designed for all your off-topic threads!

Virgin Seats, a killer

The new Virgin Velocity campaign featuring the Virgin economy seats is a real turn-off for our members. Check out their preferred seating HERE.

The Best Airline Lounges

What do our members VALUE MOST in an airline lounge? Comfy seats, eats and free alcohol tend to be top of the list in what consumers want.  A good alternative to an airline lounge is PRIORITY PASS where you can access over 450 airport lounges worldwide with a single card!

Finding the Perfect Trolley Case

Our members HELP one Frequent Flyer in his quest for the perfect trolley case. Quality, durability and price were all factors, the Samsonite brand won, hands down.

OzJet Collapse

Our members took the recent collapse of OzJet badly. The GENERAL CONSENSUS was that OzJet provided exceptional service and the competition and choice it gave consumers will be sorely missed.

Full Fuel Surcharge for Babies

Babies are being charged the same fuel surcharge as adults but only paying 10% of the adult fare price. Where�s the logic? - our members ASK.

Moving Overseas

What is the cheapest, easiest and most efficient way to move your entire life to another country? Find out HERE from those who�ve done it.

 


3. TRAVEL NEWS
 
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For the latest travel news, check out our new Travel News service
 - travel news from leading agencies, updated continually

Prepaid Travel in a Card

In a new venture United Airlines has launched the prepaid travel card that can be used like a debit or credit card to purchase travel on the airline. Cardholders can purchase tickets, upgrade seating, purchase miles and take advantage of the United Airlines' club membership program. Cardholders also can use the card to reserve priority check-in, boarding, and receive standby status. The major perk is that cardholders earn bonus miles for all flights they purchase using the cards.

2005: A Busy Year for Travel

Passengers passing through world airports last year totaled four billion, a six per cent increase from last year. The airport council international released the figures last month. The results are positive as it shows a renewed interest in air travel. The figures further showed the top five busiest passenger airports in 2005 were: Atlanta, Chicago O�Hare, London Heathrow, Tokyo Haneda and Los Angeles.

Popularity Increases for Round the World Tickets

The round the world ticket has grown in popularity with everyone from the serious business traveler to the jetsetting students cashing in on the deal. United says its revenue from round-the-world tickets recently jumped 33 percent in a year, and Singapore Airlines says demand for tickets in both business class and economy has risen strongly in the past two years.

Qantas defends A330 Maintenance

Qantas has told the Australian Stock Exchange that any suggestion it was looking to permanently outsource A330 heavy maintenance is incorrect. The executive general manager of Qantas engineering, David Cox, said Qantas had always used external providers in the early days of a new aircraft�s maintenance program and then looked to bring this work onshore at a later time.

LJ Hooker earns you points

If your thinking of selling your home, LJ Hooker real estate has become partners with Qantas offering vendors lucrative rewards to list their properties with the real estate giant. You can earn up to 20,000 points when you list and sell a residential, industrial or commercial property in Australia exclusively through LJ Hooker. Who said Frequent Flyers actually have to board a plane?

   


4. BANKS: THE LATEST HOTSPOT FOR FREQUENT FLYERS
 
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To be a Frequent Flyer nowadays your feet never have to leave the ground. Airlines are giving more frequent flyer points away to credit card spenders then high fliers. Banks seem to be airlines new vehicle for attracting customer loyalty.

Airlines charge the banks on a monthly or quarterly basis for a conversion rate for customers redeeming their points from accumulation on their credit cards. Banks have to continually renegotiate with airlines for more frequent flyer points. The frequent flyer industry is a lucrative market for banks to engage in. The cost to banks is relatively low given that airline seats are purchased at 40 percent or less the price a customer would pay. Seats are traditionally sold to the customer at around $0.03 a mile, and to the banks for between half a cent and $0.01.

As more points are now earned on the ground than in the air, it is obvious to see why the number of participants in frequent flyer programs globally has risen more than 100 million in the last decade.

If you haven't done so already check out our free Frequent Flyer Credit Card Guide , as well as our Guide to earning Frequent Flyer Points with your Mortgage.

 

� THE AUSTRALIAN FREQUENT FLYER, 2006