AirNZ reveals airpoints changes

By NZPA

Monday 19th August 2002

Air New Zealand today revealed details of a new airpoints programme designed to lure travellers onto the national carrier's soon-to-be-launched single-class domestic services.

Under the new scheme, customers will earn more points for each flight and more seats will be made available for airpoints travel.

"We have refreshed the Airpoints programme to simplify the complex points-earning and redemption system," chief operating officer Andrew Miller said.

"It will now be easier to earn and redeem points, helping us to increase customer loyalty with a wider range of benefits."

The changes are part of a broader revamp of the airline's operations, designed to return the company to profit.

Earlier this month Air NZ revealed details of a new single-class domestic Express service, to be launched in October, which will cut fares by up to 50 percent and replace full meals and drink selections with a snack, tea, coffee and water.

Key features of the new-look Airpoints scheme include:

* a 1000-point minimum on points earned on all domestic, one-way journeys (2000 points for return domestic journeys) -- excluding the new Smart Saver fares;

* a flat domestic redemption structure. Customers will need 20,000 points for any return domestic trip;

* a 500-point incentive for booking redemptions online;

* introduction of new rewards and a new gifting provision;

* introduction of a "top-up" facility, allowing members with 80 percent of the points required to purchase blocks of Airpoints to reach the goal amount;

* a simpler award system based on familiar geographic zones;

* retention of the points for kilometres formula, which is up to 60 percent richer than the miles-based system used by most international airlines;

* introduction of free connections from anywhere in New Zealand for international reward flights;

* retention of the popular companion ticket system;

* on average, 15 percent of all seats across the network will be available for Airpoints reward bookings.

Under the new programme, effective from November 1, a customer will need to take 10 full economy-class flights from Auckland to Wellington to earn reward travel, compared with 13-16 trips currently. A customer flying from Christchurch to Wellington will need to take 10 journeys, against eight-16 at present.

Reward flights will become more difficult to earn on some international routes, however, with a New Zealand to London traveller needing to take that trip five times to earn a free flight, versus four under the current scheme. Other popular routes like New Zealand to Sydney and New Zealand to Los Angeles are unchanged at seven and five trips respectively.

Meanwhile, rival carrier Qantas today announced it was reducing fares for domestic travel.

From today, tickets go on sale for as low as $59 one way between Auckland and Wellington and $69 one way between Auckland and Christchurch.

The new fares, available for all cities served by Qantas and its codeshare partner, Origin Pacific, are for flights taken from November 1.

The lowest fares, dubbed "red e-deals" are only available on Qantas' website.

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