1. AIRPOINTS UP CLOSE
 

As reported in our Frequent Flyer Club, Air New Zealand has done a spring cleanout of its AirPoints program. The new version will be launched on November 1. We know that many of our readers are members of this program, so today we take a closer look at the new scheme.

Sustainability

The AirPoints spin-doctors are hailing the new program as the airline's commitment to sustainability and long-term vision. It's an interesting take considering the looming first-year anniversary of the collapse of its stable mate Ansett. But you won't find any incentives directed specifically at the old Ansett reward point holders here. Instead the new scheme is aimed at domestic travellers - the "most loyal customers - those who fly on a regular basis", according to the company.

Qantas "Catch-up"

In many ways the changes mirror those made by Qantas 12 months ago (such as minimum points earned per journey), but there are some additional features not available with Qantas, such as allowing point "top ups".

Bums on seats

At the launch of the new program, Air New Zealand's chief operating officer Andrew Miller made a commitment to keeping, on average, 15 percent of all seats open for AirPoints reward bookings. And he says earning and redeeming points had been simplified.

We wonder when Qantas will be this forthright and clearly state how many Frequent Flyer seats they make available?

A snap shot:

* A minimum of 1,000 points will be earned on domestic, one-way journeys (2,000 points for returns) excluding the new Smart Saver fares. A flat 20,000 points will be required for any return domestic trip.

* 500-point incentive for customers who book redemptions on line (as a comparison Qantas offers 1,000 bonus points for on-line bookings).

* Top-ups allowing members with 80 percent of the points required for a destination to purchase AirPoints to reach the goal amount. For example a top up of 4,000 points to reach the minimum 20,000 points required for travel between NZ and east coast of Australia will cost $95NZ.

* A big plus of the new system is the retention of points-for-kilometres formula, which is up to 60 percent richer than the miles-based system used by most international airlines, including Qantas which changed to miles last year.

* One free stopover is permitted on Air New Zealand services. Additional en-route stopovers will cost you 10,000 points each.

For a limited period they are offering discounts of between $15 and $75 per international ticket for Frequent Flyer Club members and their traveling companions:

Ticket price $500 - $1000: discount of $15 per person
Ticket price $1001-$1500: discount of $25 per person
Ticket price $1501-$2,000: discount of $40 per person
Ticket price $2001-$2500: discount of  $50 per person
Ticket price $2501-$3000: discount of $60 per person
Ticket price over $3000: discount of $75 per person

Full details on how to claim this generous discount is available from the Members Area of the Frequent Flyer Club website. 

Best Flights is an independent organisation and not associated with frequentflyer.com.au in any way. Best Fares reserve the right to withdraw the promotion at any time.
    

2. CREDIT CARD REFORM
 

A big pruning

Consumers are said to be the big winners following reforms to the credit card industry, announced by the Reserve Bank last month.

Credit card loyalty schemes will bear the brunt of a 40% cut to the banks' reported $400 million income from credit card interchange fees. Until now, the hidden fees were used to fund loyalty schemes.

The cuts are expected to be passed onto customers. ANZ says it's prepared to swallow just $40 million from an expected loss of $120 million.

The low-down

So what do the reforms, which come into effect between January and July next year, mean for frequent flyers? For a start, the credit card industry will flourish with non-bankers coming into the game. Merchants will be allowed to charge higher fees for credit card purchases. Consequently buyers will need to reassess their purchase methods and choose the cards that best suit them.

Your options

Rethink which loyalty program is best for you. For example Qantas has reportedly already expressed preference to charge its customers more if they're not using a program partner's credit card. Banks will probably increase fees while the depth of their loyalty programs may shrink to offset the fall in revenue from interchange fees. But a bigger market - with merchant credit cards coming on the scene - will probably mean greater competition, which will hopefully result in benefits for customers.

Star treatment?

Star Alliance, perhaps keen to keep former Ansett rewards customers in its fold is running a bonus points promotion for Aussie travelers using Star Alliance airlines departing from Australia. The promotion offers 5,000 bonus points for departures before the end of November. The alliance also offers a status match for Aussies who are elite-level members of non-Star Alliance frequent flyer programs and want equal status in a Star Alliance program. These include special travel privileges enjoyed by Star Alliance Gold and Silver members. The status match offer finishes at the end of September.

Shop overseas

Don't forget with the Qantas ANZ Visa card, you earn double points on purchasers made overseas. Needless to say it's best to use the card instead of cash when you travel. Also try and buy the big-ticket items, like video cameras, overseas to benefit from the double points offer.

Eye spy

Here's a handy tip from one of our readers. To get the most mileage from Qantas domestic travels, try using the "Red E-deals" section on the airline's website, and taking the least direct route. For example taking the Sydney to Perth route via Alice Springs will earn you more points and the price is usually no different to the most direct route, even though the trip will take longer.

Fewer points

Well done to those readers who spotted a reduction in Qantas frequent flyer points available for redemption from hotel stays and car rentals. The drop is fairly significant (from five points to three points per dollar spent in some cases).

Triple A Club

Our feature last month on the Triple A Club has generated some feedback through the bulletin board. Most readers seem to like the fact they can redeem some of their lost Ansett points, albeit on a condition of having to make new purchases. The biggest sticking points so far seem to be the limited number of program partners from whom the purchases can be made.

Seat availability

Don't forget, Qantas posts its latest award flight seat availability listings on its website.

September 11

Commentators in the US say the infamous date will be the safest day to fly, with tight security expected and heightened passenger awareness. Needless to say, airport, airline and government watchdogs will be out in force to reassure travellers' safety.

US Air points

US Airway's filing for Chapter 11 has sparked fear among its frequent flyer members that their points will follow the same fate as those of former Ansett customers. The airline hopes to emerge from the near bankruptcy in early 2003 but until then we suggest point holders worried of losing their points look at redeeming them for flights or other rewards. At the same time the company is guaranteeing that the Dividend Miles program will continue to operate during the restructure period.

Basic steps

A return to basics is the new trend in the international airline industry, according to reports from the US. The big guns are apparently realising that keeping it simple and thus reducing costs is the surest way to survive. The formula seems to be working here in Australia for Virgin Blue, which has continued its growth, recently expanding on the Melbourne-Tasmania route.

Virgin card delay

The release of Virgin's credit card has been postponed for at least six months, apparently due to the legal action the airline has launched against Sydney airport over the use of the old Ansett terminal.

Virgin's boss Richard Branson also hinted that, once the card is released, it would make sense to link it with the company's other ventures - airline, mobile phones and retail shops. Discount on air travel is among the incentives the card will offer, Sir Richard said.

Inside on Jet Lag

Jet Lag is caused by long distance air travel, which upsets our internal body clocks. Put simply the body, or more precisely its circadian rhythm, gets thrown out of whack when night doesn't follow day. Fatigue, sleep problems, headaches and grogginess are the most obvious symptoms. Here are a few tips on fighting jet leg:

* Ensure you're well rested before travelling.

* As dehydration makes things worse, make sure you drink plenty of water before, during and after the trip.

* Reset your clock to your destination. When you get there, stay awake during day-hours even if all you want to do is sleep. Adjust your eating habits - remember light meals will help you stay awake; heavy carbohydrates will make you sleepy.

* If you're tired, take a quick nap of no more than three hours. Take a daytime walk.

Best Flights, Best Prices

BestFlights are offering a generous discount of up to $75 per international ticket for Frequent Flyer Club members and their traveling companions.  Full details are available on the special Members Area of the Club's website.

Qantas discounts

1. Your companion can enjoy 50% off return Economy Class Award flights between Sydney and Cairns (or 15,000 points plus $42 in taxes). Valid when you book a full-rate Award flight or purchase a commercial ticket between September 15 and October 31.

2. Your companion can enjoy 50% off return Economy Class Award flights between Sydney/Melbourne and Brisbane (or 10,000 points plus between $30 and $36 in taxes). Offer is also available on connecting flights from within Australia and runs between September 15 and October 31.

3. You can enjoy 20% off Economy Class Award flights between Sydney and the Gold Coast and some connecting flights. Valid September 15 to October 31.

Treat yourself

Stay at any Rendezvous hotel in Australia or Singapore and you'll earn double Qantas Frequent Flyer points per room, per stay. Valid for bookings and stays until November 15.

Fly Buy specials

Collect 2000 bonus Fly Buys when you purchase a Toshiba Satellite Pro Notebook with the F1178 code from Harris Technology.

Rent any Budget car for 4 days or more and get 500 bonus points plus two points per dollar spent. Valid until the end of October.

Purchase three 700ml bottles from the James Busby Wine Range (James Busby Cabernet Sauvignon, Riesling, Sauvignon Blanc, Semillon, Grenache, Merlot, Shiraz, Semillon Sauvignon Blanc & Unwooded Chardonnay) and collect 300 bonus Fly Buys points. Offer ends September 29.

FINAL WORD

Here's a beaut little joke from one of our discussion board members to end this month's Frequent Flyer Gazette (it got 122 views last time we checked!):

Qantas have just announced they are replacing their entire frequent flyer program with a new simpler, lower to administer program. From now on frequent flyers will no longer collect points, just breadsticks.

New redemption levels will include a Melb-Syd return for just 60 breadsticks (or 20 packets). Qantas spokesperson Justin Joking said "the new scheme will substantially reduce administration costs of our frequent flyer program, and at the same time reduce catering costs be reducing the number of breadsticks actually consumed by our passengers".

Customers will only be able to redeem unopened packets, and Qantas is examining means to incorporate unopened Salsa, Hummus and Guacamole dips into the new program as well.