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THE FREQUENT FLYER GAZETTE
:: FEBRUARY 2002
ISSN 1446-4292 |
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Hello and welcome to the February edition of the Frequent Flyer Gazette.
This month, we concentrate on the events surrounding the historic Ansett creditors meeting and its implications on the failed airline's reward point holders. At the time of writing, it seems all is not lost yet for Global Rewards members, though it's still not really clear how and to what extent their entitlements will be returned by Tesna, the owners of the new Ansett. The best outcome so far is that the presence of
frequent flyers has been felt and recognised by Ansett's administrators and Tesna.
Qantas is also in hot water over the ongoing dispute with its maintenance workers. So far this hasn't impacted on frequent flyer program members, but we'll continue to monitor the situation as it develops. The airline is however offering some good bonus point opportunities to reward its loyal customers, no doubt in an attempt to strengthen the relationship before the return of a stronger Ansett and with increasingly better competition from Virgin. Read on for details.
Don't forget, to keep up with the latest developments and to get the most out of your frequent flyer program,
join our Frequent Flyer Club. For a small annual fee it offers individual - and most importantly - independent support to members.
And finally, check out our bulletin board which has been running hot with hundreds of readers making their views clear on the latest developments in this country's aviation drama.
Enjoy.
Adrian
Editor, Frequent Flyer Gazette
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Ansett Mark II will remain in administrators' hands at least until March. The airline was due to be switched to the Tesna group after creditors voted last month to sell the airline. The creditors meeting was dominated by
Global Reward members demanding a better deal on their Ansett Global Rewards points or their Golden Wing Lounge club memberships. Technical aspects of the settlement of the sale have been quoted as the major cause for the delay of the handover. But the airline is now flying under Tesna's schedule and fare rates. The number of weekly flights has also increased from 424 to 530 between all capital cities except Hobart.
Ansett administrators will spend their last month in office by, among other things, re-valuing the 70 billion reward points owed to Global Rewards members. This follows intense lobbying and pressure from frequent flyers,
many of who have voiced their strong opinions on our bulletin board. The original calculation meant each point was worth only 0.2 cents, or a total of $140 million. The administrators will now take submissions on valuation methods and may take the matter to court to resolve the issue.
Tesna is due to launch its own loyalty program this month, which will not recognise old Ansett points. But the syndicate said "large bonuses" would be offered to travellers taking new flights with the new Ansett.
One proposal is to give Ansett's 2.7 million frequent flyers bonus points for flights in the first few months of the new airline's operation. Better access to free flights is also on the cards but details are yet to be worked out. "We have very commercially sensitive negotiations under way to try to maximise the return to the frequent flyers because they are just as much creditors as anybody else," administrator Mark Korda said.
Diners Club has last month went into bat for its members who have had their Ansett Global Rewards frozen. The company took 5,000 proxy forms and represented members at the Ansett creditors' meeting, voting for the sale of the airline to the Tesna
group. Diners welcomed the administrators' decision to take a fresh look
at the value of reward points but said there were other means to get a
better deal. "These include direct negotiation with the Administrators,
or potential Federal Court action, before the next creditors' meeting in
March," Diners said in a statement.
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Qantas is giving away up to 15,000 bonus points on flights between Australia and selected overseas cities until the end of March. You can get an extra 15,000 points on travel between Australia and London, Paris, Frankfurt or Rome. Get 8,000 bonus points on return flights between Australia and Los Angeles, Bangkok, Singapore, Hong Kong or Mumbai; and 2,000 bonus points on return flights between Australia and Auckland, Christchurch or Wellington.
For comprehensive list of all Frequent Flyer specials,
Gold Subscribers and
Frequent Flyer Club members can use our Frequent Flyer Specials calculator which can be found on our
home page.
Qantas is also offering a 20% discount on Award bookings for Economy Class travel between the following destinations: Sydney and Auckland (excluding QF119), Melbourne and Auckland, Sydney and Wellington, Brisbane and Wellington, and Melbourne and Wellington. It's valid until the end of February. Call the airline for details.
A reminder that some flights purchased on frequent flyer points may have taxes owing on them. During a recent flight from Melbourne to Sydney, for which I paid using my frequent flyer points, I was told at check-in that the booking was not confirmed because the small noise tax was not paid on my ticket. Luckily, some twenty minutes later - and after forking out a few coins - I was allowed to board the flight. However I have heard of a case where a frequent flyer missed out on a booked flight from Melbourne to Perth because he did not pay the relevant taxes within three days of booking his award flight. The best bet is to ask and pay for any taxes and additional charges at the time of booking your flight. Does anyone have similar stories? Share them on our
bulletin board.
United Mileage Plus members can donate their frequent flier miles to the American Red Cross or the September 11th Fund of the United Way of Greater New York. The drive has been set up in the aftermath of last year's terrorist attacks on the US. Donations of 1,000 miles or more are accepted. Contact United Mileage Plus for details.
The Frequent Flyer Gazette has been getting numerous inquiries from our readers about their frequent flyer programs. Unfortunately our small editorial team is not in a position to provide individual assistance to our subscribers. We suggest you either post your question on our public
Bulletin Board or join our
Frequent Flyer Club
which does provide individual support.
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While the Federal Government is keen to keep charging air travellers the $10 Ansett tax despite the sale of Ansett, its guarantee to underwrite all Ansett tickets has expired at the end of January. The Ansett tax will continue until the sale of all Ansett assets is complete, which could take a year. Administrators Mark Mentha and Mark Korda, from accounting firm Andersen, said money from sold tickets was being held in trust and customers would be refunded if the airline closed.
Ansett's unsecured creditors will get just five cents in the dollar, following the sale of the airline to Tesna. They are owed nearly $2 billion. The group will reportedly inject $400 million in cash into the revived airline, $270 million for terminals, and $244 in staff entitlements. Tesna's new fleet of 29 Airbuses will cost $2.5 billion.
What's the difference between an Express Ticket and
an E Ticket? Some travellers have been confusing the two - which could
prove frustrating and costly. An Express ticket is simply an itinerary
and you must still present a paper ticket at check-in. An E Ticket is an
electronic ticket on the airline's computer, which means you only need
to present ID to collect the boarding pass.
Virgin may not be the cheapest alternative, says one of our readers, Darren F, from Perth. Darren writes that after reviewing Virgin's Melbourne to Perth fares for March, he found that after adding taxes, and other expenses Virgin "end up being not that much cheaper than Qantas, and without some of the benefits (flight choice, food etc)."
While east coasters seem to be benefiting significantly at present it would seem that the same benefits are not so great for WA patrons. Having said that the current fares are at least a respite from the $1,300 return fares that some were paying when Qantas was the sole provider and seats were at a premium."
Virgin has introduced connecting travel. From February 14 connecting fares will allow for travel on up to two flight sectors for the price of one. "So for instance, you could travel from Sydney to Cairns, with a transit in Brisbane," boasts the airline. Connecting flights include travel between Adelaide and Brisbane, Darwin and Sydney, and Melbourne and Mackay among others. Perth travellers have been left out of the new scheme.
In addition to fare specials Qantas and Virgin have also sweetened their services to customers in order to put a dent in the new Ansett. Qantas is putting new planes on smaller routes, which until now have been neglected by the big airlines. Virgin is increasing legroom on its planes and offering business-class seats to passengers buying unconditional fares.
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All
Frequent Flyer Club members are entitled to a free Frequent Flyer
Health Check each
year. This month we thought we would share some of our insights by
making available a sample Health Check we prepared for one of our Club
Members.
Tony M has 90,000 Qantas points, 14,000 United points;
has an ANZ and Westpac Visa card; and earns about 8,000 Qantas pointer
per month, 60% from Credit Cards. His goal is to obtain the
maximum number of award flights to the United States.
If you are interested in what we had to say, you can
download the Report we
prepared for Tony.
Remember, this unique service is available to Frequent
Flyer Club members only.
Join the Club, and let
our Frequent Flyer experts prepare an individual report for you.
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Qantas Holidays is offering two points for each dollar spent on its land arrangements in Queensland. Bookings must be made before the end of February for flights until the end of March.
Companions can take 50% off their Qantas award booking on selected flights between Sydney and Paris until the end of February. Effectively, this is a "buy one, get another for half price" deal. The discount applies to business and first class fares only and both award flights must be booked at the same time.
Ansett has taken about $100 off its one way full economy fares in the ongoing war for customers. One-way flights between Sydney-Melbourne and Sydney-Brisbane are now going for $280.82 (including taxes). The standard full economy fares are $346 and $379 respectively. You'll pay $683.64 one way between Sydney and Perth, compared to $833, and Melbourne-Adelaide one-way will set you back $273.76, compared to normal price tag of $334.
Ansett has also released its latest return airfares, which can be booked through the internet. They include Melbourne to Sydney for $143, Sydney to Perth for $451, Brisbane to Adelaide $231 and Adelaide to Perth for $385. We recommend checking the latest ticket offers with all three major airlines as the low season and heightened competition has lead to regular discount offers being advertised by the airlines.
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