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 THE FREQUENT FLYER GAZETTE   ::   MARCH 2002
 ISSN 1446-4292
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CONTENTS ::
 
1. Ansett News
2. Reward Programs
3. In the News
4. Club Corner
5. Promotions
 

 

Editors Note :: 

Well, here we are again. If you're getting a sense of de-ja-vu over yet another collapse of Ansett in just under six months you're not alone. Some commentators have predicted that Australia's airline industry would not be able to support three airlines. But many expected Ansett to at least get off the ground before merging with Virgin Blue or crashing out all together.

So where does the death of Ansett leave the Global Rewards program members? We'll discuss that and the fallout from the breakdown in talks between Ansett administrators and the Tesna group in this month's newsletter.

Don't forget our bulletin board, which has proven to be one of the leading discussion forums on frequent flyer issues in Australia.  Visit the Bulletin Board and see what others like you are talking about.

And here's a cheeky observation from one of our members sent to us last month: "Today's date is a rare triple palindrome 20-02-2002. Yes you can read it backwards. This will not happen again in our lifetime - and we will never see Ansett again in our lifetime."

Enjoy.

Adrian
Editor, Frequent Flyer Gazette

 
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1. ANSETT NEWS
 

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Its all over

The collapse of the Tesna deal was undoubtedly the final nail in the Global Reward members' coffin. It's unlikely that even a class action against the administrators would reap any benefits for the 2.7 million members of the failed airline's frequent flyer program. Unless new developments prove otherwise, we can now focus on the duopoly and the head to head fight between Qantas and Virgin Blue.

We can expect both airlines to use whatever means they have to win the war for customers.

While Virgin is considering beefing up its number of flights, the budget airline will most likely to continue offering cheap, no frills deals. We believe the airline has no plans to introduce a loyalty program in Australia anytime soon.

Qantas on the other hand will probably focus on the quality of its service and flight availability.

Expect fewer frequent flyer seats in the short term as the airline struggles to cope with increased passenger numbers spilling over from Ansett Mark II. In any case, the battle lines are drawn: it's discount travel versus full service experience.

Angry response

Ansett Global Rewards program members have blasted the Tesna group's for its efforts to win over their business just before the collapse of takeover negotiations.

More than 800 messages had been posted on our bulletin board objecting to Tesna's program, which ignored the 70 billion points accrued under the old Ansett by its most loyal clients.

Under the new plan, 500,000 base Global Rewards customers would have needed to pay more than $80 to join Tesna's frequent flyer program. This would also have given them 10,000 starting points, followed by another 10,000 for their first return flight and another 2,000 each time they travelled during the first year of the program.

Another 2.2 million Sapphire, Platinum and Diamond members were to get between 25,000 and 80,000 bonus points for their first flight with Tesna, followed by up to 10,000 in bonuses for flights in the first 12 months.

Members fight

Responding to Tesna's frequent flyer program proposal, Global Rewards Action Group spokesperson Jon Caneva said his group would pursue Ansett administrators for a better deal.

Since the collapse of the transfer talks the group's next move is yet to be announced, but judging from the fight they've put up so far we may yet hear from Mr Caneva, his group and Diners Club which has also joined in the lobbying on behalf of its frequent flyer members. The group's address is: [email protected]

 


2. The Reward Programs' Low down
 

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Sweet carrot

Qantas is continuing its 15,000-point promotion until the end of this month. Under the program, frequent flyer members flying return between Australia and London, Paris, Frankfurt or Rome will get up to 15,000 bonus points for their troubles.

Those travelling to LA, Bangkok, Singapore, Hong Kong or Mumbai will receive 8,000. A return flight to New Zealand will earn you 2,000 bonus points.

Insurance scoop

Good news on the insurance front for Global Rewards program members. One of our readers says she's managed to successfully claim her unused but purchased award flights through Zurich Insurance.

"At one stage Ansett had told me to throw away the tickets," she wrote.

"Zurich were very helpful. I had to provide a quote for the travel, copies of tickets, copies on rewards statement showing points deducted and letter from Westpac re points. They reconfirmed the points with Westpac and bingo."

"Only the points earned on the Gold Visa Card were insured, so I got $1212 for one return ticket Syd/Denpasar/Syd."

She says all she had to do was send copies of the Global Rewards statement showing the points deducted, copies of tickets, and a letter from Westpac confirming the points were accrued on the Gold Card.

Hot rumour

Another of our readers has posted what he or she called an "insider trader" on our bulletin board. The hot goss was that apparently the Coles/Myer group was considering opting out of the Fly Buys program.

Another reader responded claiming the scheme has been under review and the Coles/Myer decision has been postponed since October last year to weather the industry shake-up.

Diners bonus (See important update)

One of our readers has pointed to an offer being run by Diners Club over the course of the year. Diners will give you 12,000 frequent flyer miles on any major airline of your choice when you join quoting code SIZK5617. It's worth checking out.

IMPORTANT UPDATE (5 March):  Diners contacted us (4 March) with the following: "Information regarding the above offer published in the current edition of The Frequent Flyer Gazette is incorrect and has been published without the permission of Diners Club Australia. We have urged the Editor to contact Diners Club Australia immediately to print a retraction. This offer may relate to another program run by Diners Club USA and we are currently investigating"

We were simply reporting one of our reader's comments.  As this does not apply to cards issued by Diners Club Australia -  although as Diners have stated, the offer may apply to cards issued by another (non Australian)  Diners Club franchisee -   we do apologise for any inconvenience caused.  A correction will be published in next month's Gazette.

If anyone knows of similar offers, let others know on our bulletin board.

    


3. THE PRESS ROUND UP
 
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Net advantage

American Express says its business clients are increasingly turning to online air ticket bookings as a means of saving money on airfares. It comes in wake of a global trend to make Internet air travel bookings easier and with the added bonus of online discounts.

Watch Qantas

Just days before the final collapse of Ansett, Qantas managing director Geoff Dixon said consumers would be the winners in a bloody air war, but that workers would lose their jobs. Now Australia's biggest airline is frantically looking at ways to accommodate grounded Ansett passengers, while still fighting off competition from budget Virgin. Mr Dixon said until now Qantas has struggled to maintain standards while competing with lower airfares and dwindling traveller numbers.

New air taxes raise fares

In this uncertain world one thing is certain. Taxes. Air travellers have been hit with two new taxes on domestic flights. A safety and security charge, set at $1.63 and a variable passenger service charge will add up to $6 to all Qantas domestic airfares. Similar charges have already applied to international flights.

Fly and talk

Qantas is to allow passengers to use their mobile phones on its planes - just before take off and soon after landing. Air safety officials have given the green light to the airline, allowing its passengers who are waiting for take off to get off the plane to use their mobile phones. Passengers on the CityFlyer services to Brisbane will be the first to enjoy the relaxed rules with other Qantas flights to follow.

Tax boost

What to do with the $10 Ansett tax? It's expected the federal government will soon scrap the tax, imposed last year to guarantee Ansett employee entitlements.

Australia's tourism body the Tourism Task Force says if there are any leftover funds the money should be pumped into promoting tourism down under. The tax was expected to raise up to $95 million a year.

    


4. CLUB CORNER
 
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Last month we published the Frequent Flyer Health Check we prepared for Tony M - one of our Frequent Flyer Club members. This month we feature the Health Check requested by Janelle J, another Club member.

Janelle J and her partner have a combined total of over 180,000 Qantas points. They earn approximately 8,000 points per month, all from their affiliated credit cards. Their goal is to travel to Eastern Europe in my 2003. They are unsure as to the best way to use their points and are concerned that they need to book 12 months in advance to have any chance of getting an award ticket. For those of you who are interested in our analysis, download the report we prepared for Janelle.

Frequent Flyer Health Check is a free service offered to all Frequent Flyer Club members. Many readers have requested that this service be made available to non-members.  In response, we will be offering the service to all our readers - on a trial basis - for the month of March. The cost is $27.95 (payable by cheque or credit card).

The questionnaire and instructions can be downloaded here.

    


5. REWARDS AND SPECIALS FOR MARCH
 
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50% discount

Qantas is offering 50% off a companion's award flight when you buy a commercial fare between Sydney and LA or Honolulu, or between Melbourne and LA. Valid between March 15 and May 31.

25% off

Head to the Gold Coast and you can take 25% off your Award booking. Available between Coolangatta and Sydney or Melbourne. Also available on all connecting flights within Australia. Valid between March 15 and May 31.

Silver special

United frequent flyer program members over the age of 55 can now enjoy exclusive savings plus earn up to 7,500 bonus miles upon joining the program. The savings include 50% off hotel and resort stays and cruises.

Mileage earner

Here's a simple way to earn 500 free United Mileage Plus miles once every six months. According to United, all you have to do is request a price quote from a dealer on a new or pre-owned vehicle through VehiclesOnline.com. We're not sure if this deal works down under, but it could be worth a try. A reminder you can earn 1,000 bonus miles every time you book a return flight with United online.

Fly Buys extras

Collect 500 bonus Fly Buys points when purchasing specific Iomega Product from Harris Technology. You'll also get 250 bonus points with every Reach Powerbrush purchase from Coles. Expires March 31.

You'll get 100 bonus Fly Buys when you buy a 1700ml bottle of Absolut Vodka from Liquorland before the end of March.

 

 

� THE AUSTRALIAN FREQUENT FLYER, 2002