Qantas Loyalty Program May Be Worth $2b

[Mal]

I'm not worried about the takeover from a FF perspective - At the moment.

Let things settle down before worrying about the ifs and buts.

People who worry about things unnecessarily build themselves up to getting ulcers and other stress related complaints. Definitely not good at all.

It's already been mooted that Qantas will cut costs. I see this as happening at the labour/catering/leasing side of things - not FF'ers... yet.

I've already started moving my FF mileage over to AA. I'll continue to post to Qantas for flights while I see benefit (ie lifetime silver/gold pozsibility) and will post other points to AA (Hotel stays/car rental/certain flights not eligible for points on QF).

Nothing to worry about yet. Just keep an eye on things as they happen. Very little slips by AFF members, so readers here are definitely at the right place...

 

[turtlemichael]

On the assumption that the new owners will wish to make a profit, be it from a Qantas structured much as it is currently, or the hived off parts, it is likely that there will be a competitive FF scheme. I cannot conceive of a situation where owners will say we don't need a good FF scheme - the alternative is a mass desertion of high yield customers. Even if the the scheme is sold to another party, the interests of the airline are likely to be in having loyal repeat satisfied customers and that is what a FF scheme is about

Until it happens I intend to concentrate my "despair" energies on worrying about world peace

 

[JohnK]

Anyone hazard a guess as to what might happen to Qantas Club lounges.

Are QC lounges part of catering, FF program or another department of Qantas?

 

[Yada Yada]

My favourite part of the survey - the example, IIRC, was a SYD-MEL for 16k points and the pay portion for $100.00. What a deal .

I know! :shock: What the hell are they thinking? Have they looked at the full fares on DJ or even their own website? What a bunch of fruit-loops.

 

[Yada Yada]

Does this mean you will move to AAdvantage for 2007 (instead of requalifying QF WP)? Or perhaps the dark side (DJ Velocity Rewards or NZ Airpoints)?

Ahem... DJ is definitely not part of the dark side. Last time I looked, Lord Geoff Dixon looked a lot more like the evil emperor than anyone else.

I do agree that NZ are on the dark side. They turned when AN was cut adrift and my Global Rewards points were vaporised. Recent talks of their proposed union with QF was proof that the sith are alive and well. :mrgreen:

 

[Kiwi Flyer]

Given JohnK's expressed preference I would have thought DJ is the dark side.

 

[QF WP]

The Federal Opposition has called for the Australian Competition and Consumer Commission to investigate whether the proposed takeover of Qantas will affect the airline's frequent flyer program...

 

[JohnK]

Given JohnK's expressed preference I would have thought DJ is the dark side.

You seem to be doing a lot of thinking on my behalf lately.

DJ are not the dark side. I don't think much of their FF program but if it means the alternative is JQ then DJ will be my preferred domestic carrier.

And if DJ spice up their FF program and fly to SE Asia they may well become my preferred international carrier as well.

Wait and see....

 

[simongr]

The Federal Opposition has called for the Australian Competition and Consumer Commission to investigate whether the proposed takeover of Qantas will affect the airline's frequent flyer program...

I cant see that the change in ownership itself impacts the program any more than QF's current future plans - ah well at least the Labour party gets on TV looking like they are out to help the little guy

 

[Altair]

DJ are not the dark side. I don't think much of their FF program but if it means the alternative is JQ then DJ will be my preferred domestic carrier.

What about REX or any other independent regional?
NZ....they through their inept handling of AN put my commercial pilots dreams to death. Oh well I am happy with my life anyway and I am even living in NZ!

 

[JohnK]

What about REX or any other independent regional?

I can't see any reason not to use their services in the future.

 

[simongr]

What about REX or any other independent regional?

REX had a reasonable FF program - buy 9 flights get 1 free. Compare that to QFF - 9 returns SYD-MEL would earn you 9000 points - not quite enough for a return...

 

[Shano]

REX had a reasonable FF program - buy 9 flights get 1 free. Compare that to QFF - 9 returns SYD-MEL would earn you 9000 points - not quite enough for a return...

9 return trips SYD-MEL would earn 1,000 points per flight, or 18,000 points in total. A return award SYD-MEL is 16,000 points. So award redemptions would be similar between REX and QFF

 

[vt01]

Ahem... DJ is definitely not part of the dark side. Last time I looked, Lord Geoff Dixon looked a lot more like the evil emperor than anyone else.

Agree here. He's a hard nosed businessman. If something isn't good for business he soon gets rid of it or dilutes it.

The best thing FF flyers can do now is to redeem all those points. If QF accounting is based on a certain number of points being renewed, what would happen if twice that number started being redeemed... Surely there would be an impact on the QF bottom line and hence the deal...

 

[simongr]

Not necessarily. QF are carrying a liability in their books un IFRS for the points.

Now think about this. All these points are being redeemed thus reducing that liability and future liabilities of the future owners of the scheme. So basically you get more asset value in QF AND you have a FF program fully established with a customer database and network where no significant liability exists....

 

[Tooner]

...and they take the unearned revenue from selling the points to the profit & loss.

 

[Yada Yada]

Don't you just love the sound of paper shuffling...

 

[simongr]

Its more the noise of opening and closing spreadsheets and the click clack of the keyboard...

 

[NM]

Maybe I am naive, but I really don't care who owns Qantas Frequent Flyer - Qantas themselves, some private equity firm, or some other group. The reality is that Qantas needs it to draw "loyal" customers to them so they will ensure whoever own it will manage it in such a manner that QF benefits most. And completely screwing all their FF members is not in QF's best interest so that won't be allowed to happen.

There may be changes, and some will be bad and some will be good - but the division of which are bad and which are good is likely to vary from person to person. The sky didn't fall in after May 25th 2005 when the last changes took affect.

As with most things in life, and especially so in the airline space, we have a choice. At any time if you don't like the QF FF program you have the ability to use a different FF program. There are plenty of options now for Australian frequent flyers who really are frequent flyers and not just frequent debt card swipers. Qantas has always provided about 6 months notice of major program changes, and I would not expect it to be any different in the future.

Anyone using an FF program like a bank account to save for the future (such as "I am saving for a holiday to New York in 2009") needs to take a fresh dose of reality.

 

[QF WP]

Makes my plans for diversification between AA and QF programs a sound decision, as it has reduced my risks of either one changing their programs to the serious detriment of me (and my wife).