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 THE FREQUENT FLYER GAZETTE   ::   MARCH 2003
 ISSN 1446-4292
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CONTENTS ::
 
1. QF Card fee hike
2.
Program News
3.
Industry Talk
4.
Promotions
5.
Flight Daks
 

Last minute hotel reservation!
   

Editors Note :: 
    
Hello and welcome to the March edition of the Australian Frequent Flyer Gazette.

This month�s gazette is packed with interesting and valuable info to make your frequent travels just a tad smoother. For instance we look at the Qantas decision to start charging 1% on all credit card ticket purchases. We focus on an often-misunderstood section of the Qantas frequent flyer program � the status points system. What is it and how does it benefit you? There are also discounts and special offers and a detailed look at what your frequent flyer friends in other states and parts of the world are being offered, without you necessarily knowing!

Don�t forget to check out our discussion board for the latest goss and tips from other regular travellers. Have a great read!

Adrian
Editor, Frequent Flyer Gazette

 

Frequent Flyer
 Travel Centre


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1. QANTAS CREDIT CARD FEE HIKE
 

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It wouldn�t be too far off the mark to say that investors were probably just about the only group of Qantas supporters last month.

The flying kangaroo last month announced its decision to start charging Australians a 1% fee on credit card purchases. At the same time, the airline has posted record half-year profits of around $330 million.

Qantas customers are certainly not forming a cheer squad for the airline in light of the new credit card fees. While major companies, which purchase tickets for their employees, may not be growling too loudly, the do-it-yourself travellers will feel the extra pinch.

It�s hard to understand why Qantas has decided to penalise travellers for using their on-line booking service, which in the past had been so eagerly promoted as a cheaper and faster alternative for both the airline and the customer.

Qantas says the 1% surcharge is nowhere near the fee the airline pays the banks for the credit card transactions, but we mustn�t forget that the airline�s saved heaps by encouraging passengers to book online rather than using travel agents in the first place.

On the other hand, the investors would forgive the airline for the increases, especially in light of the impending storms on the horizon. Qantas last month warned that despite good half-year returns, the full year target of $550 million might not be attained if the war with Iraq breaks out.

But while the oil price and consumer confidence is being wheeled out by just about every global airline, and justifiably so, Qantas is in a unique position to offset its international losses with domestic gains. Since the collapse of Ansett, the terror-driven shortfalls in international travels have been cushioned by a jump in domestic client numbers, even with Virgin biting at the heels.

But in the end, all those big-picture costs can be targeted by a tightening of, for example, fuel efficiency, which the airline is doing through the recent purchase of cheaper and more efficient planes.

Increases in direct consumer costs � and let�s not forget that the final cost of the ticket purchase will also include air taxes and other bits � will always attract criticism, even from the most loyal fans.

 


2. PROGRAM NEWS
 

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Local Focus

Here�s how Qantas� PR department ticks. Thanks to one of our alert readers, we�ve found a website worth book marking � especially if your job takes you all over the country. Every time you receive an email from Qantas, loaded with special offers, it appears to be a customised local version. So for instance if you�re in Los Angeles you�ll get the LA version which, last we checked, was a little outdated.

But click to the Adelaide link and you�ll se that Qantas is offering 30% off award flights. The website contains links to some 30 local addresses. You can also see what sort of deals and offers everyone else is offered. At the time of going to press the address is www.email.qantas.net.au/jump/. Be quick - once Qantas realise the word is out, we suspect they may take down this website.
UPDATE (6 March):  As expected Qantas have removed this page.  The link now simply redirects to the Qantas home page!

Chances are all these deals are probably offered somewhere at the airline�s main website, but with many frequent flyers relying on their emailed, localised version, there may just be a case for some to claim they�ve missed out on a deal because they simply didn�t know.

Points and status

Since Qantas restructured its frequent flyer program back in 2001, some travellers have been left scratching their heads trying to understand exactly what the difference is between points and the status (formerly known as tier) point system. Here�s the deal.

Points are straight forward enough. You can basically earn them in two ways � either by flying with Qantas or one of its partner airlines; or by making purchases through the airline�s many partner programs.

These points can then be used to purchase award flights from Qantas. The number of points needed will depend on where you want to fly. Your points will not expire as long as you earn or redeem them at least once every three years.

But the status points system works a little different. Firstly, you can only collect status points by flying with Qantas or one of its partner airlines. They also expire every year.

Status points are the perks you get for flying often � on top of the usual rewards. There are three status levels � Silver, Gold and Platinum, and the more status points you have, the quicker you�ll rise up the status ladder.

Depending on your status you can get things like complimentary entry to Qantas Club or its membership, preferred seating, priority waiting lists, extra luggage allowance, no penalties for late bookings and even guaranteed seating. You�ll need 350 status points to qualify for Silver, 700 for Gold and 1,400 for Platinum status.

You may say that at the end of the day these are minor extras and that�s perhaps why many people haven�t really been paying much attention to what�s happening with their status. However if you�re a regular traveller, the plane is a bit like your car and that means you want as much comfort and as little hassle as possible when you�re travelling from A to B. The higher the status, the smoother the journey.

Grumpy members

Another survey on the net has shown that almost 70% of frequent flyers think their award program has got worse in the past year. Only eight percent thought their program got better. But while they�re not thrilled, 65% of those surveyed said they wouldn�t be switching from their chosen program this year.

These stats couldn�t be truer for the Australian frequent flyer market, where despite some effort by international carriers to break into the market, Qantas remains the only viable option for frequent flyers.

Domestic travellers, as we mentioned in last month�s newsletter, will not be any better off until Virgin enters the award program market or another major carrier enters the domestic market. In the current economy neither seem plausible.

Joint venture

Alaska and Cathay Pacific have joined forces and last month linked each other�s frequent flyer programs. Travellers on both airlines will be able to cross-accrual points and redeeming will begin in the next few months.

More pointers

Here is a slightly unorthodox way one of our regular readers suggests for earning more frequent flyer points.

Simply return goods purchased through credit cards for a cash refund. We haven�t checked this, but the points you earned for the credit card purchase should stay on your record, while the cash advance means you can promptly pay your purchase off.

The big question being asked here is whether this practice is ethical. Some would say that, in the words of Bart Simpson, �if it feels good, do it�. But then who�d want to waste their time buying and returning stuff? What do you think?

 


3. INDUSTRY TALK
 
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Flight paths

We�d expect many business flyers, especially on domestic routes, to go about their business as usual if war in the Persian Gulf breaks out. International travel is likely to suffer a little, though in the US the Air Transport Association says the looming war is likely to only make a 10% dent in the aviation industry. The association says most of those opting out of air travel would be holidaymakers cancelling their vacations.

In a TV campaign US president George Bush is asking all Americans to continue flying, especially in the US.

Aussie snags

Diners Club says its research shows Aussie business travellers are a grumpy lot. A survey done by the company shows annoying fellow travellers are the biggest nuisance for business commuters, who often have to treat the plane as their second office, and were not just enjoying the flights. They were away from home on average for 55 days a year and made 11 domestic and international flights.

Patriot games

In the US, the Northwest Airlines are tugging on the patriotic strings, allowing all national guard and reservists with elite frequent flyer status a one-year extension of that status if they are called to serve in the Persian Gulf. Some commentators have called this a �noble and patriotic gesture� from a member of an industry often criticised of looking to tighten award programs at every opportunity.

Vote now

Don�t forget March 15 is the last day to cast your vote in this year�s Freddie Awards. The Freddies recognise the best practice and service in air travel. Log onto www.freddieawards.com

How�s that for an incentive?

British Airways North America Executive Club members have been spoilt rotten by earning 10,000 miles for test-driving the new X-Type Jaguar. And those you decide to buy the ultimate James Bond car before mid March will get a bonus 80,000 miles.

Where it�s at

To put things in perspective, America�s three largest air carriers last year recorded massive losses. American posted a $3,5 billion loss, United wasn�t far behind with $3,2 billion lost an US Airways suffered a $1,6 billion loss. It was United�s 10th consecutive quarter without a profit.

What an offer!

Over in the northern hemisphere they do things big. And big also means big offers � like Diners Club Carte Blache teaming up with British Airways to offer unlimited complimentary companion tickets on BA flights. So every time a cardholder purchases a full fare, transatlantic roundtrip � in any class � a companion flies free. The same deal applies to similar purchases on Korean Air. The only catch is a $300 annual fee on Carte Blanche but even that pales into insignificance when you consider the savings.

Tech news

British Airways is testing in-flight email and internet systems called Connexion on its Boeings 747s, flying between New York and London. Lufthansa is also testing the same system.

 


4. REWARDS AND SPECIALS FOR MARCH
 

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Qantas

Qantas is offering discount tickets to the Australian Swimming Championships in Sydney between March 22 and 29. You�ll save about $5 off a regular ticket.

Ski Vail Resorts, Colorado for 14 days and earn 10,000 bonus Qantas Frequent Flyer points per Qantas Frequent Flyer travelling. Valid for departures March 23 to April 4, with travel completed by April 20.

Qantas is also continuing its offers of discounted hotel stays in Australia and around the world. Visit its website and go to the frequent flyer section to check out the latest news and offers.

KrisFlyer

Singapore Airlines is hoping to lure Australians linked to its frequent flyer program to Bali. Until May 15, you can redeem a fly-stay package which includes two return economy saver tickets from Singapore to Bali on Singapore Airlines, as well as accommodation (with American breakfast) for two consecutive nights in a Garden View Room at the 5-star Grand Hyatt Bali.

KrisFlyer is offering a similar deal to Las Vegas between now and May 15. Redeem 145,000 KrisFlyer miles for a fly-stay package which offers two return economy saver tickets from Singapore to the city of lights on Singapore Airlines, plus two nights' accommodation at the JW Marriott Las Vegas Resort, Spa & Golf.

US Choice

If you�re a member of the Aadvantage, Mileage Plus and Dividend Miles in the US will get triple miles when whey stay at Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn and� MainStay Suites brand hotels in the U.S. and Caribbean. The offer ends April 30.

Flybuys

Rent any Budget car for three days until April 13 and get 1000 Fly Buys bonus points.

Spend $150 with EziBuy and receive 500 bonus Fly Buys points until March 31.

 


5. FLIGHT DAKS
 

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Finally here�s some light relief. The following are some ways that flight attendants apparently use behind our backs:

Passenger: A broad term used to describe anyone interfering with a flight attendants ability to sit back, relax and enjoy the flight.
Newlyweds and Nearly Deads:
A reference to the typical passenger on a cruise destination flight.
Up-grades: A term of disdain leveled at those up graded passengers that immediately adopt a superior attitude.
Obstacles: Passengers who wait until they see a meal trolley coming to decide that a trip to the loo would be in order.
Busynessmen: Those so enamored with their own importance that they think nothing of holding up a flight to get in one last power call.
Dreamer: A reference to any male passenger deluded enough to hope that a flight attendant will invite them to join the "mile high club."

 

 
� THE AUSTRALIAN FREQUENT FLYER, 2003

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