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 THE FREQUENT FLYER GAZETTE   ::   JULY 2003
 ISSN 1446-4292
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CONTENTS ::
 
1. Virgin Loyalty
2. Program News
3. Airline Lowdown
4. Promotions

 


Editors Note ::
 
Hi everyone, welcome to July�s Frequent Flyer Gazette. It�s a packed issue this month, with news from here and abroad, plus some handy tips on the home front.

Overseas, the northern summer means increased activity and the airlines have responded with special offers and changes to the frequent flyer programs. Today we�ll take a look at some of them.

It�s starting to sound like the worst-kept secret in the aviation industry, but the rumour mill is full of whispers about a no-thrills frequent flyer scheme from Virgin. We�ll tell you what we think it will be like.

And the customer, it seems, is finally king in the Australian air travel industry. After decades of limited � at times even non-existent � choice, these days even loyal frequent flyers are making Qantas work harder for their bums on seats.

I hope you enjoy this month�s news and don�t forget to visit the Frequent Flyer Bulletin Board for more information and discussions on the latest developments in the world of airline loyalty programs.

Adrian
Editor, Frequent Flyer Gazette

 

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1. VIRGIN LOYALTY SCHEME
 

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The rumour mill is running wild with talk of an imminent announcement of a frequent flyer program at Virgin Blue.

The company recently introduced a low-fee credit card which already offers discount on overseas travel through the Virgin network.

But the latest plan for a domestic frequent flyer program seems to be, quite literally, pointless.

We hear Virgin may opt for a simple buy-10-flights-get-one-free deal. Instead of expensive frequent flyer memberships and point deals, the fly-some-get-some-free offer would fit in nicely with the discount carrier�s ethos of no thrills air travel.

The down side to such a deal would be that passengers in isolated areas like Perth, would effectively need to cover many more miles than those on short routes such as Sydney to Melbourne to get the freebie. But Virgin need not worry � the cheap East Coast flights are making the airline quite popular out west.

The loyalty program could be announced within weeks.

 


2. PROGRAM NEWS
 

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** STOP PRESS ** Changes to the Qantas Program

Qantas have just announced some fairly significant changes to their frequent flyer program. We will comment on the changes in full next month, after we�ve had time to digest it all.

However, we are concerned about the almost 100% increase in the number of points required for certain upgrades.  More next month �

View our reader�s opinion�s on these changes at www.frequentflyer.com.au/discus/viewtopic.php?t=159

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eBay bail

Frequent flyers wanting to get rid of their points with some of the world�s bigger airlines have been selling them on eBay � but not necessarily to other frequent travellers.

It�s now possible to convert miles from American, Cathay Pacific and Air Canada for credit points on eBay. You can then use that credit towards purchases you make on the on-line auction site. Conversion rates vary, depending on the award program.

Three-piece lounge

Continental Airlines, Delta Airlines and Northwest Airlines are sharing their frequent flyer program and lounge benefits.

Program members will be able to earn miles on any of the airlines� international flights, while elite members of the three programs will be able to share each other�s airport lounges.

Members will also most likely get the chance to redeem points on all three airlines later this year.

Wind of change

A reminder that changes to British Airways frequent flyer program took effect on July 1. The airline is sweetening the changes with a 6,000-bonus-point offer on car rentals.

No advantage

Aadvantage will this month stop offering upgrade awards on Cathay Pacific. If you don�t want to miss out, book your upgrade before July 31.

Instead, Aadvantage is offering up to 35,000 bonus miles for flights to Japan. The airline will give a bonus of 5,000 miles for one round trip, 15,000 for two and 35,000 bonus miles for three trips on first, business and full economy fairs. The economy class gets 2,000, 6,000 and 14,000 bonus points respectively.

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3. AIRLINE LOWDOWN
 
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Unfaithful punters

Australian air travellers are an increasingly unfaithful and bargain-savvy bunch. And leading the pack of bargain hunters seem to be the traditional loyalists, annoyed with diminishing incentives and steep pricing.

But what we�re seeing is that rather than boycotting Qantas Frequent Flyer memberships, the frequent travellers are hunting for the best deal, no matter which airline.

The biggest fight is taking place in the world of travel management, which caters to the needs of large private and government organisations. In the old days of the Qantas and Ansett duopoly, clients were happy to stick to one airline and let their employees reap the benefits of award flights.

But now travel agents are making the airlines compete for the best and cheapest deals, which means program loyalty often goes out the window.

Virgin has already manage to grab a quarter of the sales generated by the top 500 companies, largely due to its discounting and no thrills policy.

And you can bet your bottom dollar that if Virgin introduces the rumoured fly-10-get-one-free policy, bargain hunters will continue to make the switch.

Footnote  Having said all that, one of our Frequent Flyer Bulletin Board regulars said Qantas is feverously competing with Virgin, at least on the Perth-Sydney stretch. He said internet fares in June were the lowest he�d seen: �I've just booked two return flights to Perth from Sydney for a total of $438. (And) Sydney to Melbourne / Brisbane / Canberra at just $49 each way!�

More flights

United is beefing up its flight schedule this month. The struggling airline is planning 54 additional flights. It has also announced it wants to make its planes e-mail-ready. The JetConnect service would allow users access to e-mail facilities through portals on the back of seats.

But the cost is expected to be around $16 per flight plus transfer fees which could make for an expensive exercise on the narrow-band service.

More �roos in the air

Qantas is joining the fleet of international airlines opting to increase their flight numbers. Perhaps it�s a sign of the air travel industry finally picking itself up from the post September 11 and SARS downturn.

So far Qantas has increased its flights between Australia and the US from 25 to 28 a week, and then to 30 in August and 33 in September. When that happens, Qantas would be flying the same number of flights per week as it did prior to the terrorist attacks two years ago.

3 4 1

United is leading the pack of American airlines in the fight for loyal customers. But instead of frequent flyer program promotions, the airline is offering �fly three, get one free� deals, that have also been matched by other airlines.

Off the radar

The grace period for converting defunct TWA frequent flyer program miles to American Aadvantage miles is over. The former Aviators members were given a two-year chance to resurrect their old miles with Aadvantage but that window of opportunity closed at the end of last month.

    


4. PROMOTIONS
 
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Fly Buys

Rent a vehicle from budget for six days and get the seventh day free plus two points per dollar spent, plus 1000 bonus Fly Buys points. You must book before July 27.

Liquorland is offering 250 bonus Fly Buys points if you purchase a mixed dozen of wines and join the regular delivery plan before August 17.

Get triple points when you purchase Optimax from Shell before July 15.

KrisFlyer

American Express and KrisFlyer are offering 5,000 bonus miles the first time you use their Gold Credit Card, or 3,000 miles when you use the Classic Credit Card.

You�ll also get double KrisFlyer miles on Singapore Airlines or SilkAir tickets if you purchase them on the Gold Card, or 50 per cent more miles if you prefer the Classic card.

United extra

Mileage Plus members will earn up to an extra 2,500 miles for flying between the US, Sydney or Melbourne until August 31. Coach class flyers will get a bonus 1,000 miles.

Sweep up the points

Avis car rental is offering double Qantas Frequent Flyer points if you book using the Qantas ANZ Visa Card before the end of July.

Safari break

Fancy a Qantas African safari to get you through the southern winter? You'll earn triple points on any nine to 17-day Wildlife Safari adventures. Travel must be completed between July and December.

  

� THE AUSTRALIAN FREQUENT FLYER, 2003