Qantas Frequent Flyer - Macquarie Jetstar Mastercard

http://www.theaustralian.news.com.au/business/story/0,28124,26274711-23349,00.html

More information here from 1200 today:

http://www.jetstar.com/au/en/au-en/creditcard.aspx

Sounds very similar to the HSBC Woolworths card - low rate, $49 fee, points attached to a known brand

Okay let’s look at the value in this offer –

According to the newspaper link above, it’s one Jetstar cent for every dollar spent, so –
A $70 fare gets you 70c, thus it will take 100 fares purchased to get a bonus $70 fare.

[However: At $45 (card annual fee) + ($3x70) $210 (credit card fee per segment) it can deliver great value to Macquarie & Jetstar! Although the way both Qantas Group & Maquarie spend on executive salaries, I wouldn't expect to see much impact on profits, as distributed to investors.]

But it is certainly not a reward system designed to drive business from a frequent flyer. A frequent buyer, however, with a $7000+ spend* may find it attractive perhaps, depending on bonus offers/fine print. (*+$4500 to cover the annual card fee).

I am in the process of closing/ending all my various dealing with Macquarie, not enough of their profits are passed on to me as a consumer (lower fees/prices) or investor (dividends/better returns).

My current thought process is to move much of the transactional aspects of my banking to www.nab.com.au/change/ next year. [I have already moved nearly all of my credit card requirements to GE Money (no fees*). And restarted my relationship with Commsec (no fee* Mastercard debit [including a transactional account] + lower trading fees). [* no annual fees, and often low/no processing fees when compared to other banks which charge for similar transactions.]

Okay let’s look at the value in this offer –

According to the newspaper link above, it’s one Jetstar cent for every dollar spent, so –
A $70 fare gets you 70c, thus it will take 100 fares purchased to get a bonus $70 fare.

[However: At $45 (card annual fee) + ($3x70) $210 (credit card fee per segment) it can deliver great value to Macquarie & Jetstar! Although the way both Qantas Group & Maquarie spend on executive salaries, I wouldn't expect to see much impact on profits, as distributed to investors.]

But it is certainly not a reward system designed to drive business from a frequent flyer. A frequent buyer, however, with a $7000+ spend* may find it attractive perhaps, depending on bonus offers/fine print. (*+$4500 to cover the annual card fee).

I am in the process of closing/ending all my various dealing with Macquarie, not enough of their profits are passed on to me as a consumer (lower fees/prices) or investor (dividends/better returns).

My current thought process is to move much of the transactional aspects of my banking to www.nab.com.au/change/ next year. [I have already moved nearly all of my credit card requirements to GE Money (no fees*). And restarted my relationship with Commsec (no fee* Mastercard debit [including a transactional account] + lower trading fees). [* no annual fees, and often low/no processing fees when compared to other banks which charge for similar transactions.]

The press release states that there will be no credit card charges when booking a JQ flight using the card, so that point is slightly moot.

at 1c per Dollar, the earn rate is certainly poor, but the interest rate is also lower (for those who churn debt).

Either way, I doubt many people around here will be overly interested in the offering:)

The press release states that there will be no credit card charges when booking a JQ flight using the card, so that point is slightly moot.Missed that skimming thru the page. Probably also should have waited for the official release as well, as 1c per $1 on JQ spend seems way low.

There will be many people who think its wonderful.

Those poor unfortunate people who think that rewards are wonderful BUT do no understand how they work.

It is a good step for JQ and Macquarie to make some money out of them, and also for JQ to build a loyal customer base.

The more people who take up this offer, the better, that means there will be less of them looking for reward seats on REAL airlines.

Reading the Press Release it seems you earn 1c for every dollar spent, not just dollars spent on JQ. So maybe it's not so bad after all.

12.20pm and still saying come back at 12

Use the link

http://www.jetstar.com/au/cards/default.shtml?utm_source=jq_home&utm_medium=banner&utm_campaign=creditcard_20091029

From the T&C's...

Jetstar Dollars Program is provided by Card Services, and is subject to the Jetstar Dollars Program Terms and Conditions. Jetstar Dollars can be accrued up to a maximum spend of $50,000 per year on the Jetstar MasterCard® which is equivalent to 500 Jetstar Dollars; And $100,000 for Jetstar Platinum MasterCard which is equivalent to 2,000 Jetstar Dollars.

Ouch. The other clincher: when you reach $200 they send you a voucher that must be redeemed within 3 months, and must be for travel within 6 months.

Not a particularly good deal really. They obviously don't want any liability for points/vouchers on their books for any longer than is necessary. The card is definitely not aimed at people wishing to hoard their points.

The worst bit is rewards can only be used on, you guessed it, Jetstar.

Complimentary pair of white-rimmed sunglasses with each new card?

Be interesting to see what the exchange will be from Jetstar dollars to Qantas points next year.

How long till they make changes to the Qantas credits cards :(

Okay here’s the launch offer –
http://www.jetstar.com/jetmail/2009_10/credit_card_20091029.aspx

Rewards capped –
"Jetstar Dollars can be accrued up to a maximum spend of $50,000 per year on the Jetstar MasterCard which is equivalent to 500 Jetstar Dollars; and $100,000 for Jetstar Platinum MasterCard which is equivalent to 2,000 Jetstar Dollars."

Launch Offer 1
http://www.jetstar.com/~/media/images/jetmail/images/card/offer1.ashx
Reward voucher –
"…emailed to you once you have qualified for a $100 flight voucher for Jetstar MasterCard cardholders, or a $200 flight voucher for Jetstar Platinum MasterCard cardholders"

Launch Offer 2
http://www.jetstar.com/~/media/images/jetmail/images/card/offer2.ashx
Annual Fee waived –
"The annual fee will be refunded to the account by 28 February 2010 provided that you are not in breach of the Conditions of Use and the account remains open"


Important Information
"Card Services is a division of Macquarie Bank Limited... Jetstar Airways Pty Limited... is the redemption partner of the Jetstar Credit Card."

Why do card issuers limit the number of points one can obtain?

Congradulations to Jetstar for the new jetstar credit card points. I really dont preciate credit cards involved but at least its just one step away from something new about Jetstar.

With all due respect for jetstar travelers.. I have heard incredible bad stories about jetstar when it comes to international and domestic travel by them. I do not think i would ever travel with them. Not that ive ever did. But at least they are making at least some people happy about these new introduction credit cards jetstar points things.

I remember how it all started with virgin blue a few short years ago.

Why do card issuers limit the number of points one can obtain?So they can ensure that profit KPI's are as predicted.

Why do card issuers limit the number of points one can obtain?

Its so they can limit exposure in the case of errors in their pricing model.

Besides, if you put say $1m through the card would you really want to book $10k worth of jetstar flights within 3 months and that you have to take within 6 months? That is a lot of flying on JQ.

The fee waiver and 0% interest for 6 months is what interests me.

Then dump it.