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THE FREQUENT FLYER GAZETTE   ::   DECEMBER 2005

CONTENTS ::
 
1. Velocity Verdict
2. Member's Talk
3. Travel News
4. FlyBuy Fuel

 

Editors Note ::
 
Welcome to the last edition of the Frequent Flyer Gazette for 2005.

The launch of Virgin�s loyalty program has bought months of speculation to an end.  This month we provide you with a guide to everything you need to know about Virgin's loyalty program Velocity: the good, the bad and the marketing hype.

This month's Gazette is packed with the usual news and insights from our popular Discussion Board.  We all also discuss the latest FlyBuys award offering cheaper fuel.

Until next year I wish you a safe and Happy Christmas. Enjoy!

Leah
Editor, Frequent Flyer Gazette


  
1.VELOCITY - OUR VERDICT
 

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The Australian Frequent Flyer landscape changed dramatically last month with the launch of Velocity, the much anticipated Virgin Blue Frequent Flyer program.

Similar to the Qantas program, Virgin Velocity points are earned by travelling with Virgin (or its partners) and can then be redeemed for free travel.  However, there are some major differences � such as the ability to redeem Virgin points on any Virgin flight.  No more struggling to find a Frequent Flyer seat - if the seat is available for purchase, you can get it with Velocity points.  Velocity has no status levels, blackout periods or joining fees, but then neither does Qantas if you know how :)

From a points value perspective, both programs are very similar.  We undertook a detailed Comparative Analysis and concluded that there isn't much difference between the two programs.  The Qantas Frequent Flyer program offers slightly better benefits for Leisure and Corporate Platinum members; whilst Virgin Velocity offers a better deal for Small Business and the smaller Corporate customers.

One area where Qantas clearly has the upper hand is its extensive partner network.  Virgin�s partner program is still very much embryonic but does already include other airlines (Virgin Atlantic and Emirates), credit card providers (NAB) and car hire companies (Europcar).

Our Conclusion

For the first time in many years, the Qantas Frequent Flyer program has a serious opponent.

Virgin Blue have done their homework and have come up with a program which addresses many of the gripes (eg. the lack of available Frequent Flyer seats) Qantas customers have levelled at their frequent flyer program.  The program is particularly attractive to small and medium businesses as it offers better value, as compared to the Qantas program.

Qantas does have a more extensive partner network, offering more opportunities to earn and spend points.  Those who frequently travel to the United States or South East Asia (some of the most common destinations) will not be able to earn or redeem Velocity points, as Virgin doesn�t (as yet) have partners in this area.

We believe this is the beginning of yet another great battle between Australia�s two major airlines.  Tens of thousands have already signed up with Virgin, and our sources tell us that Qantas is plotting their counter offensive.

Watch this space! 

  


2. MEMBER'S TALK
 

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OzJet: Business or Budget?

The recently launched OzJet has positioned itself as a business class airline.  But based on its advertising, will it meet our discerning member�s EXPECTATIONS?

Baby on Board

How well do airlines cater for parents?  Our members DISCUSS the best ways to land yourself the bassinet seats and provides some useful tips on travelling with children.

Reducing Jetlag

These tips on reducing jetlag are integral for anybody with a long-haul flight.  Adjust to the destinations time zone and stay hydrated are just a few of the helpful suggestions posted HERE.

The Benefits of Bumping

Bumping is the practice commonly known as voluntarily giving up your seat for the next flight due to over-booking.  Our members discuss the LUCRATIVE COMPENSATION some airlines offer for voluntarily being bumped from a flight.

Boredom on Board

Our members DISCUSS the best ways to curb boredom on long-haul flights.  Drink, eat and sleep seem to be the clear favourites.

Virgin Velocity

Our members discuss Virgin blues newly launched loyalty program and its benefits.  Point�s distribution, credit cards and availability of awards seats through the virgin program are discussed HERE.

Frequent Flyer Friend - Special Offer  Advertisement

 

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Those of you who have tested the trial version, now is your time to PURCHASE a license at this heavily discounted - and not to be repeated - price.  If you haven't yet tried Frequent Flyer Friend, DOWNLOAD your free trial copy now.  If you choose to purchase a license before Christmas, you will also qualify for this discount.

To take advantage of this exclusive offer, enter the coupon code "15f743f075895180" (no inverted commas) when purchasing your Frequent Flyer Friend license.  This offer is valid until 24 December 2005.

 


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

 

Love is in the Air...

... this was the main finding of a survey conducted in the US by Chase United Mileage Plus Visa Card.

One in five people have flirted and exchanged phone numbers with their fellow passengers whilst 40% have shared a drink or meal with a fellow passenger at the airport.  Travel and holiday plans dominate in-flight chatter.

However friendship is the most likely outcome of such in-flight encounters with 14% of passengers establishing friendships and a mere 5% actually went on a date with their fellow flyer.

The survey was conducted in November and over 500 regular flyers were interviewed.

Risky Business: Trafficking Airline miles

Selling or exchanging Frequent Flyer points is relatively easy; there are dozens of websites accommodating the trafficking of Frequent Flyer points.

However, most airlines prohibit the sale of Frequent Flyer points - a condition which members agree to abide by.  A Northwest Airline spokesman, Kurt Ebenhoch said members who sell their miles risk having their membership permanently revoked, whilst members who engage in the purchase of miles could have their ticket confiscated.

Qantas also explicitly prohibit the sales of its Frequent Flyer points.  However you can donate them to family members or use them to purchase tickets for family members.

Air Paradise Flops

Less than two years after it was launched the Bali-based carrier, Air Paradise has gone bust.

Up to 2,000 Australians were left stranded after the sudden announcement that the carrier was immediately ceasing operations.  Qantas came to the rescue, offering stranded Air Paradise passengers airfares at no cost until December 10th.

It believed the airlines demise was caused by the recent terrorist attacks on Bali tourist hotspots.

Qantas: 85 Years Young

Qantas celebrated 85 years of aviation history last month with the first Australian landing of the massive new airbus A380.

Its believed the A380 will revolutionise air travel in much the same way as the Boeing 747 did in the 1960�s and 70�s.  The A380 will allow airlines to increase capacity on busy routes and provides new levels of space, comfort and service for long-haul routes.  The A380 boasts an enhanced version of sky bed in Business class, a new seat type in economy, special lounge areas, internet capability and larger entertainment screens for all passengers.  Qantas has 12 A380�s on order with the option to purchase another 12.

The festivities also involved Movie star and avid pilot John Travolta touchdown in his own classic Qantas 707 and a birthday dinner bash with over 600 guests.

PM Urges Foreign Ownership for Qantas

The PM has urged Qantas to work more closely with Singapore Airlines or consider a merger.

The current maximum level of foreign ownership in Qantas is 49%.  This may be set to change following comments made by the airline's chairman, suggesting that Qantas could have a greater level of foreign ownership and still retain its status as a great Australian brand.

Qantas guarantees that the chairman will always be an Australian and the place of running the business will always be Australia.

Jet Airways and Qantas Partnership

Jet Airways and Qantas have entered into an agreement to allow members of their respective Frequent Flyer programs to earn and redeem miles when travelling with either airline.  The partnership enables Jet Airways members to redeem their miles across Qantas� global network of 145 destinations.

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4. FLYBUYS FUEL RIP-OFF
 
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In these days of skyrocketing petrol prices, a 10c per litre discount sounds like a pretty sweet deal.

But, to get this discount you will need to sacrifice 1,000 FlyBuy points.  Still a good deal??  Crikey did the maths and as it turns out the so-called discount is a bit of a sham:

On the basis that one standard point is earned for every $5 spent at Coles/ Myer outlets, to earn 1,000 FlyBuy points you need to spend $5,000.  Let's assume that the average person fills up their vehicle with 40 litres of petrol, the 10 cent discount equates to a $4.00 discount for every $5,000 spent.

Sacrifice 1,000 hard-earned points to save a measly couple of bucks?  Not a good idea!  It seems FlyBuys are taking advantage of our concern of rising petrol prices, teamed with our poor mathematical prowess!

   

� THE AUSTRALIAN FREQUENT FLYER, 2005