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 THE FREQUENT FLYER GAZETTE   ::   SEPTEMBER 2004
 ISSN 1446-4292
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CONTENTS ::
 
1. All about Value
2. Member's Talk
3. Travel News
4. Freq Flyer News

 


  
Great Products from
The FrequentFlyerStore

Editors Note ::
 
Hello and welcome to the September edition of the Freq Flyer Gazette.

This month we celebrate our new Photo Gallery by giving away a free noise reduction headset valued at $189.  Read all about our new Photo Gallery and competition.   

We examine some of the "free" frequent flyer point offers - such as the latest offer from a residential utility company - and provide guidelines to determine their true value.

We have the usual news from Oz and abroad and some great insights, tips and observations from our readers. 

Happy reading.

Ben
Editor, Frequent Flyer Gazette

Last minute hotel reservation!

Discount Hotel Reservation




 
1. Its all about Value
 

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It seems as though you can get "free" Qantas frequent flyer points with just about anything these days.

In addition to the well known sources such as travel, accommodation, credit cards, mortgages;  you can also earn points by purchasing items such as wine, flowers, theatre tickets, magazine subscriptions, renting DVD's, and selling your property.  And now - as one of our readers points out in our Discussion Board (read HERE) - you can even get points by signing up for a residential electricity and gas contract!

So what's the catch?  Should you be tempted to lock in for a three year utility contract just to get a few thousand Qantas points? Unfortunately there is no single answer to these questions.  But to help you make up your own mind, we offer the following:

Calculate the true cost of the "free" points

There is no such thing as a "free lunch" or "free frequent flyer points".  Remember that the company offering the points has to purchase them from the airline and will be recouping the cost somehow.

So before you make that purchase you need to calculate the true cost of the points.  Identify an equivalent product (or service) which doesn't offer points.  Multiply the additional cost (and yes, the offer with "free" points will always cost more!) by 100 and then divide by the number of points on offer to get the true cost per point in cents.

For example: 3 dozen red roses costs $159 and comes with 795 "free" Qantas points.  You can purchase the identical product from your local florist for $100.  The cost per "free" point is therefore:  (59*100)/795 which equals 7.42 cents per point.

Calculate the value to you of each point

This varies between about 6c to 0.3c per point, depending on how you plan to redeem your points.  Points redeemed for upgrades could be worth up to 6c per point.  Exchange your points for a rented car and the value drops by 95% to about 0.3c per point.

For more information check out our Guide to calculating the value of Qantas Frequent Flyer points which comes with a free use of our exclusive Points Value Calculator.

Don't let the offer of "free" points drive your spending habits

Never spend cash (or lock yourself into a contract) on something you weren't going to do anyway just to get points. And never spend cash if the cost of the points exceeds the value to you.

  


2. MEMBER'S TALK
 

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Most of out readers will know that our Discussion Board provides frequent flyers with the ability to share information with others in our virtual community.  Over the last couple of months everything from Cheap Status Credits to the Check-In Nazis have been discussed, sometimes with a bit of vigour and emotion!

Well, this free and popular service has just got a whole lot better!  In addition to sharing information, you now have the ability to share images with our new Photo Gallery.  Upload your favourite holiday snaps,  rate or comment on other member's photographs, send e-cards, create a private virtual photo album, and much more ...

Check out all the features of this great new service HERE.

Photo Gallery Competition - win a noise reduction headset (Value $189)

To get the ball rolling, we are running a little competition: create a Gallery comprising of a minimum of 10 photographs before the end of September 2004 and you will be eligible to win the highly acclaimed PLANE quiet Active noise reduction headset valued at $189 donated by The Frequent Flyer Store.

These are the competition rules:
1.  there must be at least 10 photographs in your Gallery
2.  the photographs must be available for public viewing (ie. not a private album)
3.  the photographs must be posted on the Gallery by 30 September 2004
4.  the photographs will be judged by frequentflyer.com.au staff.  The judges decision is final
5.  the winner will be announced in the October edition of The Frequent Flyer Gazette

Your photographs can be of anything, but remember our primary focus is frequent flyers. Photographs of aircraft, airports, interesting destinations, anything airline related (even airline meals!) etc would therefore be most appropriate.

To be able to upload your photos, you will need to be registered on our Discussion Forum.  Registration is free.  Simply follow the Register Link on the Photo Gallery Home Page.  If you are already registered, simply login and upload your photos. Nothing could be simpler!

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Economy class travel is never comfortable, and on a long flight there's nothing you'd like to do more than sleep, but achieving this is often difficult and uncomfortable.

The First Class Sleeper - designed by an airline pilot - provides a simple and innovative solution to this common need.

As recommended by The Travel Insider: This is one of these wonderful and simple 'why didn't someone think of this before' type devices that really do help make a long plane flight more comfortable.

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3. TRAVEL NEWS
 
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China Southern to join SkyTeam Global Alliance

China Southern Airlines - the largest airline in The People's Republic of China - has signed an agreement for future membership of the SkyTeam Alliance.  It is the first carrier in the nation to join an airline alliance.

The SkyTeam Alliance was founded in June 2000 by Aeromexico, Air France, Delta Air Lines and Korean Air. In 2001, CSA Czech Airlines and Alitalia joined the alliance. Since then, the SkyTeam alliance has expanded customer service with flights to 121 countries with 517 destinations, offering more than 8,300 flights per day with annual passenger traffic of more than 218-million passengers.

As a member of SkyTeam, China Southern will jointly cooperate with its partner airlines in sharing mutual facilities and joint purchases, joint frequent flyer programme mileage as well as joint use of airport lounges around the globe.

Qantas reintroduce hot meals on domestic flights

Qantas has done a backflip on its domestic inflight service, axing the cold box meals it introduced in 2000. Hot dinners have been reintroduced on economy flights and there is now a choice of two meals in business class.

The changes are part of an overhaul of the airline�s domestic inflight service after feedback from Qantas customers and staff. The airline is thought to be trying to position itself away from its low-cost rival, Virgin Blue. The new products and service which Qantas will introduce will be branded �fresh spirit�. Qantas executive GM John Borghetti said the enhanced �fresh spirit� service offered customers a choice of hot and cold meals and �gourmet snacks�.

We can't help wondering if anyone from Qantas was monitoring What is the worst snack on Qantas flights which was featured in last month's newsletter?

Alcohol abuse saved travellers� lives

Six young Russian men are alive today because they were so drunk airline staff refused to let them board one of the two planes that crashed in the country�s south late last month. The men were booked to travel on the Sibir Airlines Tu-154 aircraft that crashed near Rostov-on-Don while en route to the Black Sea resort Sochi.

A total of 44 people were registered to fly on the aircraft, but only 38 boarded at Moscow's Domodedovo airport after the six drunken holiday makers were denied entry. All passengers and crew died in the crash.

Qantas profit approaches $1 billion,  $1000 bonus for Qantas staff

Qantas have announced a pre-tax profit of $964.6 million for the year ending June 30, 2004. This result is a 92 per cent increase on last year�s result.

To reward those that made it happen, Qantas will pay each of its staff members a $1000 bonus. CEO Geoff Dixon said the bonus would be paid to all current permanent and fixed-term staff but not executives who were already on bonus schemes. He said the company had also committed $50 million over the next three years to initiatives designed to help staff balance work and family commitments.

Meanwhile, Geoff Dixon has agreed to extend his contract for a further three years. The conditions of his new contract include fixed annual remuneration of $2 million and a cash bonus, which we expect is significantly more than $1000!

Flight Centre website to be upgraded

Flight Centre has acquired an Internet travel business and an associated software development operation. The takeover means Flight Centre now has access to a state-of-the-art online booking system which it intends to incorporate into its existing websites.  Expect a bit more competition in the online travel market!

Jetstar again hit by aircraft trouble

Low-cost airline Jetstar has been hit by another aircraft malfunction. A Jetstar aircraft bound for Hobart was forced to return to Melbourne shortly after take-off after the pilot noticed a problem with one of the B717�s engines.

The incident is just the latest for the Qantas subsidiary. On July 26 a Jetstar flight made a precautionary landing after an attendant smelt burning plastic and wiring. But Jetstar spokesman Simon Westaway claimed Jetstar had excellent safety standards and it was unfair for people to suggest otherwise. He said Jetstar safety and maintenance had just been reviewed as part of their move to introduce their new A320s.

Tourists targeted in traffic-fine scam

British visitors to the Spanish island of Gran Canaria have returned home to find bogus letters demanding payment of traffic fines. The letters demand EUR129 (A$ 222) be sent to an office in Madrid.

The UK Office of Fair Trading (OFT) said the letters were particularly convincing, boasting an official-looking crest and citing non-existent legislation. In addition, many of those targeted by the scam had just returned from the destination.

Hostesses Fight Virgin

Eight former flight attendants have been given the go-ahead to pursue Virgin Blue for discrimination after they claimed the airline rejected them because of their age.

The attendants argued in May that they were knocked back because they refused to sing and dance at their job interviews. But the women, aged 36 to 56, now say the airline was deliberately seeking 'youthful looking' applicants.

Labour would lift Qantas ownership cap

A Labour government would consider lifting restrictions limiting foreign ownership of Qantas to 49 per cent, according to a report in the Australian Financial Review.

The newspaper claimed the ALP�s policy shift would be welcomed by Qantas, which has consistently lobbied the Howard government to remove the restrictions. Labour's transport spokesman Martin Ferguson told the AFR the party had an open mind on the issue but Australia must have regard for making sure Qantas could survive in a tough international competitive world. He said the business environment Qantas operated in today was different to that in 1995, when the former Keating Labour government insisted on strict foreign ownership limits as part of privatisation.

Fuel surcharge keeps rising

Record fuel prices have resulted in many airlines - including Qantas, Air New Zealand, Singapore and Virgin Blue - raising their fuel surcharges. 

 


4. FREQUENT FLYER NEWS
 
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This section of the newsletter is sponsored by the new revamped Frequent Flyer Club.  The Frequent Flyer Club is now operated by the Handzon Company.

  • Not every hotel gives points Did you know that some hotels will not give you Points or Miles on rates booked via Internet or on pre-packaged rates? This is not common knowledge and it is worth checking the facts before you confirm the rate. Check with your Travel Agent or Hotel direct.
     

  • Fly 1st Class across the USA for under $US300 We suggest this instead of burning American Airlines or Delta Airline points as such amazing deals were available in July and August. Expect more such deals this year. Some Economy deals were from $US99 each way.  Check with your savvy Travel Agent.
     

  • 10,000 Free Amex points on P&O Cruises We have discovered an exclusive deal when booking a P&O South Pacific, Alaska, USA or Caribbean Cruise and paying with an AMEX Card with Axis Travel. They have organized a special offer of 10,000 Free AMEX Membership Reward points per Adult on all P&O Cruises deposited before Sept 30th 2004. A limited offer that rarely exists with Cruise liners! Grab your cabin now and score these extra points!
     

  • Free Car Rental Excess Coverage when you take out the discounted Travel Insurance Policy issued with the Frequent Flyer Club and QBE insurance. This policy not only offers excellent Travel Insurance protection but has an excellent excess payout when renting a car. Frequent Flyer Club Members save 15% on issued Policies.
     

  • PAY $35 a day when booking an Avis Car and still get Qantas Frequent flyer points, even if flying on Virgin Blue or Jetstar!  More details from The Frequent Flyer Club.

  • SAVE Up to 25% on redeeming domestic Qantas Frequent Flyer flights. More details from The Frequent Flyer Club.
     

  • GET 50% more points per mile flown on selected Qantas and British Airways fights.  More details from The Frequent Flyer Club.

We've had had great success in securing domestic and international frequent flyer seats for travel up to January 2005.  Get us to secure your frequent flyer seats now online or by calling 1300 139 036.

 

� THE AUSTRALIAN FREQUENT FLYER, 2004