Recent research shows that over two-thirds of people prefer a points-style reward system for their credit card. Among points programs, frequent flyer schemes have the most variation, according to the study.

Many consumers are under the impression that 'better-performing' cards come with higher rewards fees and annual fees. Cannex senior finance analyst Garfield Wright says it is possible to get a good - if not better - deal from a less expensive card. In some instances, programs which are linked to standard cards are found to be as good as so-called premium systems.

The research reveals that American Express cards outperform in most categories. For example, with Westpac's Altitude Gold Mastercard - a premium program - it costs $32,000 to earn a Sydney to Brisbane flight. Meanwhile, American Express's standard Qantas Frequent Flyer card requires an expenditure of $16,000.

Garfield Wright offers consumers some valuable tips for bagging the best deal:

1. Look at how many dollars a card gives back for the points, not just the number of points accumulated
2. Consider the type of award you want
3. If you're not really sure what you want, go with one that seems to give good value across the board
4. Interest rates should be factored into choosing a program. If you're going to pay interest, you shouldn't even be in a rewards program because every dollar you pay interest reduces the value of the rewards program
5. Be careful when choosing instant rewards programs because they are difficult to compare

FREE GIFT
On the topic of Credit Cards, you might recall our popular A Guide to Selecting Frequent Flyer Credit Cards which we published a few years ago, selling at $4.95.  Although its a bit dated now, the methodology we presented is still valid.  If you would like a FREE copy, simply refer 3 friends to our newsletter and we'll send you Guide.

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Jetstar and Japan Airlines in Code Share agreement

Jetstar and Japan airlines have agreed to enter a Code Share agreement to commence later this month. The agreement is subject to regulatory approval. The move comes in a bid to increase Japanese tourism to Australia.

Qantas Frequent Flyer Program to Stay

Qantas chief executives have promised the Qantas Frequent Flyer program will stay under the planned sale. Rumours about the scheme have been rife since Airline Partners Australia announced its $11 billion bid for Qantas late last year.

Chief financial officer Peter Gregg told the Herald Sun: 'The frequent-flyer scheme is a very powerful piece of the Qantas product offering and we would hate to see anything happen that affected the Qantas product offering. And that's the basis on which we'll go forward with the frequent-flyer scheme.'

Budget Flights Causes Fury

Travellers in the Northern Territory are furious that they were shunted onto Jetstar flights despite booking and paying for Qantas travel.

A Jetstar spokeswoman says passengers were informed that they had to travel on Jetstar and were offered refunds. However, passengers tell a different story, many claiming they were never given an option.

Mars vs. Venus Air Travel A new consumer travel survey from Amadeus has uncovered what stresses the sexes when it comes to air travel. The survey found that women are more likely to gripe about flight delays. The same holds true for getting agitated over lost luggage and worrying about missing flight connections. The survey found that men are more frequent air travellers than women. Of the 1,000 people surveyed, nearly twice as many men flew more than six times in the past 12 months. Men are also more likely to be members of frequent flyer programs, and are three times as likely to have elite status.

Virgin's bold plans

Virgin Blue has announced plans to create an international carrier to service the Australia-US route, possibly a new low-cost carrier to compete with Jetstar, while at the same time attracting the high-yield domestic customers currently dominated by Qantas.

Virgin Blue said growth would come from more business and government travellers, new products and services and a new fuel-hedging position.

The airline already is negotiating with Boeing to buy seven long-haul 777-300ER aircraft at a cost of $A3.3 billion.

Frequent Flyer programs are not aging well according to Rolfe Shellenberger, the father of the AAdvantage program. Among the issues that raise his ire are the scarcity of award seats, hefty points requirements for award travel, an array of booking fees, and moves to reduce the points balance for inactive accounts.

Industry experts respond to such complaints by claiming that airlines are just trying to survive in a competitive business climate.

Jetstar's Simon Westaway says the wait for frequent flyers is due to the popularity of some travel routes.  'To redeem points on the Jetstar service is based on seat availability and a number of our markets experience high levels of consumer demands,' he says. 'At the end of the day, there are always limited number of seats available to frequent flyers.'

Despite the complaints, gripes and annoyances, consumers are continuing to flock to airline loyalty programs. Why? Maybe it�s the thrill of the game, the race climb the status scale or the simple attraction of getting something for nothing. Whatever the attraction, it seems frequent flyer programs are here to stay.