Air NZ introduces 'airpoints dollars'

10.00pm

Air New Zealand this morning announced a revamp of its Airpoints scheme, which will allow members to book any seat on any Air New Zealand flight.

Managing director and chief executive officer Ralph Norris said Air New Zealand Airpoints Dollars will replace Airpoints as the programme currency and will be able to be used like cash when booking seats. One Airpoints Dollar will be equivalent to one New Zealand dollar.

The airline said more than one million of its customers are Airpoints members, with 780,000 of these living in New Zealand.

On November 16, all members' existing Airpoints balances will be converted to Airpoints Dollars with 75 Airpoints equating to one Airpoints Dollar.

The existing programme rewards Airpoints based on distance flown rather than the fare paid, but the new scheme will focus on money spent on travel.

The company said there would be greater earning potential on most domestic, Tasman and Pacific Island fares, but lower earning potential on long haul discounted flights.

Mr Norris said the new programme was designed to reward frequent flyers more fairly.

He said that under the current scheme, an Airpoints member paying $2400 for a discount economy return flight to London would receive 26,966 Airpoints -- enough to reward them with a return domestic flight and almost enough for a return trans-Tasman flight.

But a frequent domestic customer would have to fly return between Auckland and Wellington 14 times at a cost of at least $3900 to earn the same points.

- NZPA