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 THE FREQUENT FLYER GAZETTE   ::   FEBRUARY 2005
 ISSN 1446-4292
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CONTENTS ::
 
1. FF currency
2. Member's Talk
3. Travel News
4. Freq Flyer News

 


Last minute hotel reservation!
 
eBay is Australia's leading online marketplace

Editors Note ::
 
Hello and welcome to the February edition of the Gazette. 

I trust you all had a good holiday and are returning refreshed for 2005.  After taking a bit of a break in January, I have prepared a bumper February edition.

Virgin Blue is again rumoured to be introducing a frequent flyer program.  We have no firm confirmation of this from the airline, but do understand that it's scheduled to be launched early in the new year and will operate on a simple "buy x flights, get 1 free" principle.

Our lead story looks at an article published in The Economist which speculates that frequent flyer points are now the world's most popular currency - there are 14 trillion frequent flyer points in circulation, valued at over $US700 billion!

There's also the usual news, insights and tips from our readers, and Frequent Flyer Club news.

Happy reading.

Ben
Editor, Frequent Flyer Gazette

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1. Frequent Flyer points - the most popular currency
 

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At frequentflyer.com.au we have long held the view that frequent flyer points should be considered to be a currency.  Points are earned, accumulated, and then spent.  Much of our work has gone into assisting members in determining the value of their points (eg. Guide to calculating value of QF points) and how best to manage them (eg. PocketMiles).

Last month The Economist, a leading international news and analysis magazine, published an article entitled "In terminal decline" where they speculated that the US dollar has been toppled as the world's leading currency - not by the euro or the yen - but by the humble frequent flyer point! 

By the end of 2004, The Economist estimates that almost 14 trillion frequent-flyer points had been accumulated worldwide - they value this at over $US700 billion, more than all the dollar notes and coins in circulation!

Continuing with the currency metaphor, The Economist goes on to claim that airlines have been printing too much of their currency.  The number of points outstanding has risen by almost 20% a year over the past decade.  At the current rates of redemption - even if no more points were issued - it would take 25 years to use up the stock.

Such inflationary policies must inevitably lead to a devaluation of the value of points, as evidenced in the recent devaluation of Qantas frequent flyer points in November last year.

  


2. MEMBER'S TALK
 

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Virgin Blue Frequent Flyer program?

The industry is buzzing with rumours that Virgin Blue will launch its Frequent Flyer program early in the new year.  A member polled our readers to try to determine whether Qantas frequent flyers would make the switch.  It seems as though they will.  Have your say HERE. (By the way, these results are consistent with another poll taken shortly after Qantas announced their program changes in late November.)

Not all Qantas points are equal

Did you know that the higher your Qantas Frequent Flyer Status, the more useful your points become.  Frequent flyer award seats which are not available to the majority of members (eg. those with Bronze membership) suddenly become available to the elite Gold and Platinum members.

Use this fact to your advantage:  As one of our senior member suggests, use the new family points transfer facility to transfer points to a family member with high status.  That person then gets access to the extra seats and can book the ticket in your name!  See the discussion HERE.

How to spend 1 million points

Imagine winning 1,000,000 American Express Membership Reward points!  Well, one lucky reader has done that just that and seeks some advice on how best to use them.  Read what our members suggest HERE.

Need help planning your next trip?

One of our members asks for assistance in planning his trip to the US.  This generates an interesting discussion and some useful tips - such as to get a good hotel rate, its usually better not to mention you're attending a conference, when making the booking.  Read the discussion HERE.

Available for auction from eBay right now!  Advertisement

 


3. TRAVEL NEWS
 
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Traveller duty free limits doubled

The Federal Government has doubled the value of duty free goods travellers can bring into and take out of Australia, effective from 1 February.

Customs Minister Senator Chris Ellison says the travel industry has been pushing for the change for many years. "We'll see an increase from $400 to $900 for duty free goods and for a child from $200 to $450," he said.  "As well as that we'll see a doubling of the alcohol allowance from 1.125 litres to 2.25 litres.  Tobacco will remain unchanged."

No Flight Centre �fares guarantee� for five years

Flight Centre will stop using its �lowest airfares guaranteed� slogan for five years and undertake extensive corrective advertising in response to ACCC concerns.  ACCC�s investigations into the use of the slogan claims has led Flight Centre to make the court-enforceable undertakings, but no admissions.

ACCC chairperson Graeme Samuel said the ACCC believed the slogan indicated to customers that Flight Centre�s airfares were guaranteed to be the lowest available, when it was not always the case.  �The ACCC had serious concerns that customers may have been misled by FC�s slogan which may have led them to decide not to �shop around� for lower prices from competing agencies,� Samuel said.

New Super jumbo to be used on Australian routes

Airbus has unveiled its A380 super jumbo.  This huge new aircraft, which can carry up to 840 people on its two full decks, supersedes the ageing 747 by US rival Boeing as the biggest passenger aircraft ever made.

When it starts flying commercially early next year, it will become the flagship of many airline fleets and offer unprecedented amenities on long-haul services, including, in some cases, gyms, bedrooms and bars.  Thirteen airlines have already placed firm orders for 139 of the planes. And it doesn't come cheap - the "catalogue price" is between 263 and 286 million dollars!

Although already HUGE - wingspan of 80 metres, overall length of 73m, height of 24m - Airbus is under pressure to make the world's biggest passenger aircraft even bigger!  Airlines including Emirates and Virgin Atlantic are already lobbying for a stretch version of the plane, which could carry more than 1000 people on shorter, heavily travelled routes.

Passengers flying the so-called Sydney to London Kangaroo route will be the first to experience the new jet, with a Singapore Airlines service commencing from the middle of next year.  The airline plans to eventually use the planes on routes from Australia to the US (see next story).

Qantas said it has ordered 12 A380 aircraft with the first being delivered in October 2006. Qantas plans to deploy its first four Airbus A380 aircraft on flights between Los Angeles and Sydney/ Melbourne.

Singapore seeks "US open-sky" deal with Australia

Transport ministers from Australia and Singapore will, at Singapore's request, meet next month to discuss opening routes from Australia to the US to Singapore Airlines, a move hotly contested by Qantas.  Qantas has argued that it needs protection amid the turbulent world airline market after the attacks of September 11, 2001.

Singapore�s transport minister, Yeo Cheow Tong claims the aviation industry had recovered strongly since Singapore and Australia last discussed access rights in September 2003.  Then, the Australian government had cited the poor state of the local aviation industry following the September 11 attacks on the US in 2001, as a reason for holding back on full liberalisation.  But Yeo said the timing was now right to discuss further liberalisation.

Yeo said in the past year he had given Qantas permission to establish Jetstar Asia in Singapore, putting it in direct competition with the Singapore flag carrier in its home market.

See what our members have to say about this HERE.

Oneworld adds four new destinations

The Oneworld alliance, of which Qantas is a member, has added four new destinations to its network:

  • Pucon, Chile (Chile�s LAN to introduce flights between Santiago and Pucon three times a week)

  • Xiamen, China (Cathay Pacific begins services between the city and Hong Kong three times a week)

  • Bangalore, India (British Airways will connect London and Bangalore with three flights a week)

  • Chihuahua,  Mexico (American Eagle introduces a daily service from Dallas/Forth Worth hub)

French propose AIDS tax on travellers

French President Jacques Chirac has suggested that governments should slug international travellers with another tax, this time to pay for research into AIDS!  Speaking to political and business leaders attending a World Economic Forum in Switzerland, Chirac said funds to help fight AIDS could be raised through a levy on the 3 billion airline tickets sold each year.

Snake on Air NZ flight

A snake found its way onto an Air New Zealand flight from Brisbane to Auckland in late January.  A passenger discovered the non-venomous green tree snake in the economy cabin one hour into the flight.  Air NZ said the in-flight service director put the 50-centimetre reptile in a bag and placed it in the fridge, then handed it over to the NZ Ministry of Agriculture and Forestry when the plane landed.

World first with Virgin Blue's "Happy Hour"...

Virgin Blue has introduced a new marketing initiative called "Happy Hour".  The concept - a global aviation first according to the airline - will involve offering discounted fares across various domestic routes for sale via the internet for one hour every day on a permanent basis.

Happy Hour will be from 1-2pm (EDST) and will offer the best deals of the day.  Different routes will be on sale each day.  Fares could be as low as $1 plus taxes.  Virgin Blue says that it will put thousands of seats on sale each Happy Hour.

... and something is brewing at Virgin Blue

In January Virgin Blue's share price plummeted after the carrier dramatically cut its profit forecast following weaker than expected passenger numbers.  It was their second profit warning in three months, prompting the share price to drop by as much as 15 per cent.

... and then a few days later, one of its major share holders, Patrick Corporation makes a $1.1 billion offer for the 54.6 per cent of Virgin Blue it does not already own, by offering $1.90 per share - 10c more than its closing price.

... and then on the same day, Richard Branson has raises his stake in Virgin Blue by purchasing 5.1 million shares in Virgin Blue.  This takes Virgin's stake from 24.6 to 25.1 per cent.

Maybe its just the effects of the "Happy Hour", but lets watch this space closely...

 


4. FREQUENT FLYER CLUB NEWS
 
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This section of the newsletter is sponsored by the new revamped Frequent Flyer Club.  The Frequent Flyer Club is owned and operated by the Handzon Company.

  • Qantas flights very full in 2005  Even at this early stage, Qantas award tickets for travel throughout 2005 are hard to secure.  We have been inundated with requests by travellers with requests for travel to Rome, London, Dubai and Hong Kong.  Los Angeles and Paris are particularly hard to secure.  Contact us on frequentflyerclub.com.au whether you want to check availability or go for the actual booking request.
     

  • Hyatt vs Sheraton vs Hilton Honors - Recently we compared the number of points required for a free Hotel night in over 40 properties worldwide.  Hilton won by having more room nights available, using less points and less �blackout� days.  The Sheratons were second best available and offered good value-for-money.  We are able to book these room nights using your points - great for a weekend away or gift for your family or partner.
     

  • Avis Promotion on again!  Book an Avis Car in Australia and receive 500 Qantas Frequent Flyer points per rental will apply.  The rates are competitive and right now when you rent any Avis car in Australia you�ll receive double Qantas Frequent Flyer points on eligible rentals.
     

  • Star Alliance AirPass  Star Alliance members travelling to Japan have the option to purchase a Japan Air Domestic Airpass to travel inside Japan from only (approx) $260 per sector.  Excellent value as Japanese air travel can be expensive.
       

  • When is it better not using Frequent Flyer points?  When you can score a very cheap airfare deal with flights/dates that suit you best and therefore retain your points for future travel!  We do this weekly for our travellers - examples are a $69 domestic airfare instead of wasting 30,000 points or a cheap $1499 ticket to Europe instead of wasting 110,000 points.  Your choice of course but frequentflyerclub.com.au give you the choice with realistic and logical options!
     

  • Its more than a free flight  Not much good using a free frequent flyer ticket if you're pay too much for your hotel or tour when you get there!  Frequent Flyer Club extends to all booked travellers and members corporate discounted Car and Hotel rates.  Also cruise savings and Travel Insurance discounts.  Save on the total deal, not just the frequent flyer portion!

 

Get us to secure your frequent flyer seats now online or by calling 1300 738 073.

 

� THE AUSTRALIAN FREQUENT FLYER, 2005