1. CREDIT RANTING
 

Anger over ANZ fee hikes

ANZ has copped some criticism over the announced fee hikes on its award-winning Qantas ANZ Visa and Qantas ANZ Gold credit cards.

ANZ says its annual fee on the Qantas ANZ Visa card will increase from $27 to $40 and the rewards program service fee will jump from $33 to $55. That�s a total of $95 for the one card. What�s more, additional cardholders will be charged $65, up from $10. The Qantas ANZ Gold card fees are even higher, with a rise from $100 to $150 in total fees.

�No way am I paying $215 for me and my partner to have the Qantas ANZ Gold card...I don�t collect enough points to make that worthwhile!� wrote one frustrated member on our Frequent Flyer discussion board.

Those angered say the rise in fees is an incentive to reconsider the benefits the card offers, especially since other banks offer similar services for much less.

�The fact remains that we do not have to use the ANZ Qantas Gold Visa card, we could use the Citibank Qantas Gold Visa card for half the price,� the member wrote. �I will cancel my ANZ visa when it is up for renewal in June next year. I hope they gain some common sense by that time and bring down the fees. If not CANCEL!!� another reader wrote.

The bank says increased costs of running the scheme have forced the rise in fees. But with other banks offering better deals, disheartened members are only concerned about one thing, summed up by this outburst on our discussion board: �ANZ is pushing my loyalty!�

Other cards

ANZ�s fee hikes have prompted other banks to put more effort into flogging their credit card products.  The Commonwealth Bank, for example, is doing all it can to promote its credit card products.

The bank�s offering 8.5% interest for the first six months and 16% thereafter, whereas ANZ is charging 18% annually. Commonwealth has waived the annual fee for the first year and the fee then jumps to $45 or $82 (depending on your status) which is still half of what ANZ charges. And, most importantly, you can still do the point-for-point transfers to the Qantas Frequent Flyer program.

Chance or coincidence?

As ANZ announced its fee increases, its long-time program partner Qantas is promoting a double points deal with Diners Club. The offer expires at the end of January next year.

2. PROGRAM NEWS
 

Insider (points) trading

While most of us are busy looking for ways to rake in more frequent flyer points on the round, some airline workers are finding point-scoring loopholes behind our backs.

What�s more, the recently discovered frequent-flyer rorts could be costing the airlines hundreds of thousands of dollars, according to a recent article in The Australian.

Some of the scams include two former Qantas employees setting up 28 false frequent flyer accounts to earn more than 11 million points from passengers with common Asian names. The fraud cost the airline almost $500,000.

Photocopying boarding passes to rack up unclaimed points is another way to scam points off unsuspecting travelers and we�ve already discussed the auctioning of frequent flyer points in last month�s Frequent Flyer Gazette.

The �reward for introducing a friend� offer has also come under scrutiny of airline bosses. Staff have been known to add their own names to application forms as introducers of the applicant to the program, pocketing the reward points for their efforts.

According to some in the industry, there are countless other examples of this silent points fraud. If anyone has heard of them, share it with us on our discussion board.

New kid on the block

A new Aussie rewards program, Maximum Awards, has entered the market. Maximum Awards works like most other services of its type by letting you collect points on purchases made through its program partners.

When you join, the company sends out a 200-page catalogue with product offers for which points can be redeemed. Each dollar spent earns 10 points and the goods are home-delivered, while travel booked through the company�s partner Travel Easy Holidays will earn you up to 5 points.

Unlike some other reward programs, Maximum Awards also offers reward flights on a combination of airlines. For example domestically, the program actually buys seats on the best connections between cities using Virgin and Qantas schedules. And so you may end up traveling one way with Qantas and returning on Virgin, on the same reward!

If you�re already with a frequent flyer program you�ll be able to double dip by earning points through Maximum Awards travel and collecting frequent flyer points with your airline for the same flight.

The company claims the value of the points is guaranteed through a trust account which holds funds to the equal value of points earned.

Because the program is in its infancy we�ll wait for others to judge its effectiveness. A quick scan through the program�s website at maximumawards.com.au seems to show that award are not out of reach.

But remember, when buying goods with point scoring in mind, make sure you don�t overspend for the sake of a few extra points. You might as well buy a full price air ticket instead of spending the cash on things you don�t really want or need.

Familiar points

Here�s a quick tip on how to earn points faster, thanks to one of our members. We must first point out that this works only if you trust your wife (or hubbie) and, more importantly, your mother-in-law. Gordon writes that to speed up his point scoring on the Qantas ANZ Gold card, he�s given his wife and mother-in-law cards linked to his account. �I have averaged about 60,000 - 80,000 points [earned] a year over the last three,� he wrote on our discussion board.

But his clever scheme also involves friends: �A friend of mine recently wanted to travel to the East coast of the USA. Airfare from Qantas = $2,060. He gave me the cash; I made a deposit into my Qantas ANZ card, then I paid the airfare for him. I got 4,120 points for the exercise!

�My mother puts all her bills and petrol etc. on my card. I get about 2,000 points a month just from my mother! We all have to be 'on the lookout' for ways of 'racking up' our personal point levels...just think about all those LOST opportunities.�

AA bonus

This info�s especially for those who spend more time abroad than they do down under. American Airlines Aadvantage members in the US, Canada, Mexico, Asia and Latin America could earn up to 60,000 bonus miles for transpacific travel before the end of March next year. For details go to www.aa.com and follow the links.

Roo mates Kiwi

Last month the flying kangaroo has announced it will buy a large chunk of its once bitter cross-Tasman rival Air New Zealand.

Qantas plans to buy 22.5% of Air New Zealand over the next few years. But the deal has already sparked some criticism from the Australian Competition and Consumer Commission which has warned it would examine the deal closely before giving it the clear for take-off.

One exciting feature of the deal would be the ability for Qantas Frequent Flyer members to redeem points on Air New Zealand flights. But the airlines have warned the deal would take some time to nut out.

Show me the flying money!

How do airlines spend the hard earned dough from your ticket? According to the Air Transport Association in America, it roughly breaks down like this.

Some 2.3% of the operating expense is chewed up in food costs (which is more than insurance spending, despite the recent skyrocketing of premiums); 13% goes on leasing the aircraft fleet; 11.6% is burnt up in fuel; 20% is spent on �other costs� such as taxes and consulting fees; and the biggest expense is labor costs, which account for 39.1%. Where does the rest go?

We�re not sure but no doubt it helps the cash-starved airlines stay in the air.

Germ airfare

Flying could be a bit of a health hazard, if you don�t keep your hands clean.

Recent studies of aircraft cabins revealed what many of us had already sniffed out � that airborne dunnies are crawling with viruses and bacteria, including E.coli. The bathroom door handle, the sink and the toilet seat are reportedly bug cities but ice cube trays and coffee makers have also proven to be fertile breeding grounds for invisible nasties.

Christmas cheer

A new overseas Internet site Miledonor.com, allows frequent flyer points to be donated to worthy charities. Different options for point transfers are available but it�d be interesting to see how it works or Australian frequent flyers. Anyone feeling generous enough to find out?

4. REWARDS AND SPECIALS FOR DECEMBER
 

Qantas

Stay two or more consecutive nights at selected Radisson hotels and receive 500 bonus points. Or stay three or more consecutive nights at a participating Radisson hotel or resort in Asia and pick up double Frequent Flyer points. Valid for bookings made before mid December for stays January 1 to 25, 2003.

You'll earn 5,000 bonus points when you fly Qantas from Perth to Singapore, Melbourne to Los Angeles or Sydney to Auckland before mid December. This offer is available even if you're connecting from another international or domestic service.

Air New Zealand

Get bonus points on any Air NZ international flights booked online before January 15, 2003.

Travel insurance

Columbus Direct is offering members of the Frequent Flyer Club 20% off their already discounted travel insurance policies. Visit Columbus Direct for more. To claim your 20% discount off the regular price, you will need to purchase your policy from the Travel Insurance link which is available in the Members Area of the website.

Flybuys

Collect up to 1000 bonus points with the purchase of Connoisseur Gift Hampers from Coles. The offer expires December 29.

Purchase one carton of Bavaria Premium Beer from Liquorland and collect 200 bonus points. Offer expires December 29.