Airpoints backlash warning for Air NZ

By CHRIS DANIELS aviation writer

Air New Zealand's new airpoint scheme risks alienating high-paying and previously loyal business passengers, says a travel industry publisher.

The airline, which on Wednesday announced an annual loss of $319 million, revealed a revamped airpoints scheme last week.

It said 87 per cent of its passengers would be better off and only 5 per cent would be disadvantaged.



Air New Zealand has increased the number of points needed for seat upgrades and companion tickets.

One-way airpoint travel will be charged the same as a return flight.

Tony Dominey, publisher of travel industry publications Tabs on Travel and Travel Today, said Air New Zealand risked alienating some of its most important customers - business travellers who took mainly international flights.

In a detailed analysis of the new airpoints scheme published this week, Dominey found huge increases in the number of airpoints needed for companion tickets and upgrades - jumps of between 11 per cent up to 205 per cent to get an upgrade on a flight to London.

Just under 20 per cent of all airpoints are used for such upgrades.

He says Air New Zealand is using "smoke and mirrors" to disguise the new scheme's disadvantages from the flying public.

The airline had misread the corporate market, which expected some recognition of loyalty.

Trade consultant John Gore, a member of Air New Zealand's "Gold Club" for frequent flyers, said yesterday he was upset that changes that disadvantaged him were being dressed up as something good.



Air New Zealand said it accepted Dominey's figures for the differences in airpoints now needed for upgrades and companion tickets.

But it said domestic connections for international airpoint flights were now free, so those living outside Auckland would not have to pay for the flight to Auckland before using their airpoints to fly overseas.

Most passengers on fares qualifying for airpoints would need to take fewer flights to accrue enough for a bonus trip.

nzherald.co.nz/travel