Changes to airline partner earning and spending

[Trumpkin]

From the September Airpoints update:

A recent review of the Airpoints airline partnerships has resulted in a realignment of the Airpoints Dollars earning and spending amounts when Airpoints members fly or redeem on our Partner Airlines. From 1 November 2012, Airpoints Dollars earned on a number of Partner Airline flights will be reducing, while at the same time the amount of Airpoints Dollars required for Partner Airline reward flights will also be reducing, to better reflect the value our Partner Airlines place on Airpoints members flying with them.

For flights taken on our Partner Airlines from 1 November 2012 Airpoints Dollars earned on airline partners will be changing, and the amount of Airpoints Dollars required for Reward flights on our Partner Airlines will be reducing for rewards booked from 1 November 2012.

There is no change to the Status Points earning when travelling on our Star Alliance Partner Airlines.

See the Earning on Airline Partners chart for flights taken from 1 November 2012 here and the Airline Partner Reward chart for flights booked from 1 November 2012 chart here

[lokijuh]

Wow Australia-Asia in J drops from 165 to 60. ! Trying to drive away star alliance partners?

[serfty]

Makes my decision earlier this year more correct.

I do a lot better crediting flights to Virgin Australia Velocity than AirNZ.

(note that even then they have just blocked earning on flights within NZ on DJ flight number from the cheaper fares:

~Effective 14 September 2012, Saver – Discount Economy fare classes (F, R, X, U and A) will be ineligible for Points earn when travelling on domestic connections within New Zealand on Virgin Australia codeshare services operated by Air New Zealand.

)

[libertyuk]

Originally Posted by Trumpkin

From 1 November 2012, Airpoints Dollars earned on a number of Partner Airline flights will be reducing, while at the same time the amount of Airpoints Dollars required for Partner Airline reward flights will also be reducing, to better reflect the value our Partner Airlines place on Airpoints members flying with them.

This is disingenuous. It is fairly clear that Air NZ earns far more incoming from Airpoints members flying on Partner airlines (e.g. TG, SQ, UA, VS and increasingly NH, ET) than Airpoints members spend on rewards, partly because Partner awards are so expensive and hard to obtain.

What this does is confirm a strategy that Airpoints is for NZ members only, and if they fly on partner airlines it will be mostly incidental as most of their flying will be on NZ. It makes it even less attractive to be a non-NZ airpoints member.

It also makes a mockery of the partnerships NZ has been forging for long haul with VS, NH and AC. Why would anyone choose to fly NZ-Europe including a partner airline when earnings are so poor? Yes some will make sure they go on NZ via HKG or LAX to LHR, but others will simply look elsewhere as the frequent flyer value proposition has been eroded.

From NZ the big drop is in business to Asia, which loses 40% of its earning value, presumably targeting those flying SQ or TG. Even first loses 13%, but no change for economy.

Relevant to both TG and SQ is Asia-Europe, which loses 50% in all classes except first (losing 29%). Why fly NZ codeshares on VS to PVG or NRT? This will be driven by Europe-NZ via Asia travellers, but for Europe-Asia alone it kills earning on anything except NZ to HKG. It also hits connecting at HKG onto LH or LX, presumably because NZ would prefer transits at LHR.

For Australia it is more of a cut. 62% cut in First and 64% in Business to Asia but no change in economy. Hitting SQ, TG and VS. 55% to North America in First and 45% in Business, hitting AC, UA and VA (understandable given NZ wanting to attract customers onto its flights). 42% in Business to Africa, hitting SAA flights (even 10% off of full economy).

Curiously North America to Europe is barely touched, but its earning rates are shockingly low anyway. A 4% trim off of First, which only affects UA, LH, TK and LX.

South America to Europe is of interest, as that is a growing route for TP, LH and for now, TAM. 67% cuts in First and Business, 27% cut in full economy, but a small uplift in discount economy.

However, relevant to me in Europe-Middle East, which means MS, LH, LX, SK and TK. 75% gutting of earning in Business, 63% cut in discount economy and first and 36% cut in full economy.

Finally cuts of between 25-45% on intra-zone travel of any distance, hurting US domestic flights, and flights within Asia and Europe.

Burning airbucks on partner flights drops by between 15-25%.

It is now 2610 to redeem (say) UA from SYD-LAX in First one way, which compares to 2790 for a discount NZ reward in business AKL-LAX/SFO/VYR

3190 for a discount NZ reward in business AKL-LHR compares with 3715 in First (if you can get it on SQ) or 2965 in Business.

Better value than Star Alliance upgrades which would be 1550 economy to business SYD-LAX or 3250 AKL-Asia-LHR from economy to business one way.

[Xiaotung]

I have said this many times . Unless they revert back to a distance based scheme, they are simply going to make it worse and worse. The dollar system is logically flawed. When are they going to realise that?

[brenrox]

Originally Posted by Xiaotung

The dollar system is logically flawed. When are they going to realise that?

When the accountants have less of a say

[Rebound]

Another reason not to have any allegiance with Air NZ Airpoints if possible

[Blackcloud]

I am shocked.
Shocked that anyone on this board would credit a partner flight to Air Points, in fact why would anyone credit a eligible LH NZ fare to Air Points is beyond me. It has been like this for many years.
Air Points has been a bad programme to credit flights to for a long time, now they just make it plain stupid to credit anything bar NZ short haul flights to it, especially when you can top up, or flights that will not earn on *A programmes.
There are many better programmes out there just make sure it delivers what you want.

[lokijuh]

I used to keep my star gold ticking overly (so my airpoints didn't expire), largely on Australia-Asia flights on SQ in J, when looking at earn/burns after accounting for fuel surcharges these were at least in the right order of magnitude for my desired redemptions (SIN-MEL or SIN-Europe). However now, it's over. I need to spend my airpoints!

But, I am a little concerned that the reductions in spending Airpoints will be accompanied by the imposition of fuel surcharges on award tickets (the reductions seem consistent with the value of many carriers fuel surcharges). Or am I am being overly cynical here?

[ajnz]

Originally Posted by Blackcloud

I am shocked.
Shocked that anyone on this board would credit a partner flight to Air Points, in fact why would anyone credit a eligible LH NZ fare to Air Points is beyond me. It has been like this for many years.

Actually Airpoints wasn't bad for short-haul LH/SQ/BD/US and to a certain extent UA crediting. 15 Airbucks (or status bucks or whatever) for LHR-FRA is/was worth more to me than 500 United miles.

[serfty]

I have another 2.5 years of NZ based *G without crediting a single flight to Airpoints.

It's obvious AirNZ no longer care much about their non NZ members.

[Buzz53]

As a MEL flyer, this change encourages me yet again to use up all the airpoints in my account and move on.

The extent of changes to business are shocking. It completely guts any value in crediting Star flights to NZ.
Try earning on * flights then redeem on NZ. Just too prohibitive.
It looks like status points remain unchanged.
QF are looking more attractive for long haul across to the US (managed to get an upgrade to F last flight from LAX).
I like the NZ BP product for MEL-LAX, far better than QF in business, but as a FF program NZ have lost the plot.
I've just dropped back to G as I'm no longer making any effort on NZ. Only if the price is better MEL-LAX will I bother.

[serfty]

I have 2¢ in my account after spending some on a *E standby upgrade.

These will expire before the end of this decade.

[highpeak1]

Is this NZ's competitive response to the QF/EK deal?
And NZ's deal with Etihad is a half-baked affair - no status points on even NZ-coded EY flights.
As Xiaotung has said, why continue with the dollar-earning programme when everyone else is mileage-based? It must really hurt NZ giving away unrestricted dollar credits.
However, we are now getting the worst of both Worlds; weakening *A earning and more rigorous yield management burning opportunities as NZ has to prove internally that one-up was worth the effort.

[Shazzadude]

Although any reduction in earning is a mark against the program, APD are pretty much worthless now anyhow.

Have the drops in APD redemptions to book flights/upgrades on other Star Alliance airlines been announced?