Air New Zealand Air Points - Further cuts to APD earning from 24 July 2012

I've just finished reading the latest Airpoints Newsletter and noticed the following point:

"Seats to Suit offers you cheaper fare options and greater flexibility to tailor to your needs. As a result we will adjust the Airpoints Dollar™ earning rates to reflect the changed fare structure for these destinations."

So, yet another revision hot on the heals of the last one. Looking at the new earning table (http://www.airnewzealand.co.nz/airpoints-dollars-earned-on-airnz-from-24-july-2012), NZ to HNL in BP has been cut from A210 to A100, and Y+ from A125 to A60, along with relatively savage cuts across the Y class tiers, and to the journeys originating outside of NZ.

It seems to me that the S2S change has been used as an excuse to review the APD earning across those routes in their entirety, even on booking classes that have not been impacted by this S2S change. I wonder when the North American and UK routes will have their APD earning cut in half too?

Utterly ridiculous.

[QUOTE=NZ_Traveller;18581049]
NZ to HNL in BP has been cut from A210 to A100.

NZ to PPE in BP has been cut from A210 to just A60

Think they upset that no-one made a tV show about them like Tiger and Easyjet and they think if they make themselves an unattractive carrier for frequent and repeat flyers they will get a TV show - maybe " The way we were" or "We Follow Leftist Ideology and Strive not too Be the Best Hence all our FFP Cuts" or "The Pits"

Three earn reductions in a year. That's some awesome business planning. Time to get an award for that.

•Airpoints Dollars earning rates for Air NZ routes booked and ticketed before 1 June 2011
•Airpoints Dollars earning rates for Air NZ routes booked and ticketed on or after 1 June 2011 and before 1 February 2012
•Airpoints Dollars earning rates for Air NZ routes booked and ticketed on or after 1 February 2012 and before 24 July 2012
•Airpoints Dollars earning rates for Air NZ routes booked and ticketed on or after 24 July 2012

Yet another reason why I no longer travel internationally with NZ and have even decided to drop from *G as Airpoints is no longer a program I am interested in. All work flights now just credit Status Points not APD and personal flights are being funded out of my diminishing APD balance.

Staying for the moment... with a plan to travel (and earn NZ Gold) almost solely on good value *A premium fares... which is relatively easy with my travel...

NZ Gold for lounges etc (including NA domestic!) AND for the 2 upgrade certs (whatever they are called now)..

So.. we will drop down to one NZ metal Y+ return to NA each year... (or even a Y one way!) at whatever time of year is best value/best UG availability.. upgraded with those certs...

Hard to see the $$ benefit for NZ from me anymore....

Change the Status credit earn.. and I'm completely "outta here"...

...

So.. we will drop down to one NZ metal Y+ return to NA each year... (or even a Y one way!) at whatever time of year is best value/best UG availability.. upgraded with those certs...

Hard to see the $$ benefit for NZ from me anymore....

Change the Status credit earn.. and I'm completely "outta here"...I have posted elsewhere that my time with Airpoints as a GE is coming to an end - albeit slowly given a banked year.

At least recognition Upgrades will still be able to be paired to upgrade to BP from economy ... and confirmed up to 355 days out as a GE.

Over the last two months I have dragged up enough airpoints for two two-class transpacific GE 'Standby' upgrades. It been harder than it used to be. These will be spent on a return fare to booked for Nov/Mar within the next month.

Other than that, one more T/Pac return fare booked for 2013/2014 to utilise four Recognition upgrades as a GE over 13 months is the only further NZ booking I am planning.

I'm not sure what I'll do with the two I'd receive as a *G - don't like lotteries ... quite likely to let them expire.

Staying for the moment... with a plan to travel (and earn NZ Gold) almost solely on good value *A premium fares... which is relatively easy with my travel...

NZ Gold for lounges etc (including NA domestic!) AND for the 2 upgrade certs (whatever they are called now). ...Yes, NZ *G is not bad to have for Oz residents who would travel Virgin Australia and *A. So, yes some Premium *A 'value' fares to top up that status may be the go.

1. flights are cheaper or the same price as last year (for the most part)

2. fuel etc costs continue to rise

3. Airpoints dollars are now devalued to = cash and the programme becomes a status program

I am happy with the changes.

I would rather pay less for flights and not worry about collecting $20 apd which is effectively just the same as getting a $20 discount on an overpriced flight.

Only ones really affected are Business travelers who don't pay for overpriced flights but get paid quasi cash for flying air nz.

Obviously the financial success of S2s so far shows that by far and away most flights are personally funded. And that when business travelers chose they dont have much alternative to NZ anyway and also are still attached to status based priveleges - space+, lounge access, premium check in etc.

1. flights are cheaper or the same price as last year (for the most part)

2. fuel etc costs continue to rise

3. Airpoints dollars are now devalued to = cash and the programme becomes a status program

I am happy with the changes.

I would rather pay less for flights and not worry about collecting $20 apd which is effectively just the same as getting a $20 discount on an overpriced flight.


Not to be rude but I think you are so naive or perhaps you haven't got the full picture. FFP's have value greater than cash in that you get to redeem a seat which is only available to frequent flyers (the X, I, O class), abiet subjuct to inventory control, in most cases is much cheaper than you can buy with cash. This is particularly true to Business and First redemptions. I know a lot of people who belong to other *A programs frequently enjoy redeeming NZ Business tickets without a lot of efforts. Also in that you get to upgrade using points to the next cabin. In most other FFP's these can only been redeemed by miles/points not cash to reward frequent flyers not once off flyers.

Bear in mind that on standalone NZ redemption ticket, you don't get to use X, I, O classes which are available to any other *A partners so when you redeem chances are you are paying a whole lot more.

It can also give airlines a lot of cash flow when bank, hotel, rental car companies transfer miles/points to the airline for being a FFP partner. With Airpoints top up, you don't need to spend with those partners so that members don't have the incentives to have to spend with a partner company. I don't think Airpoints partners can be very happy with the changes. Actually in terms of Airpoints partners, this program is becoming smaller and smaller with more hotel partners leaving.

Lastly who says NZ has cheaper fares? And also who says you can't get a cheaper fare AND a decent program to earn miles at the same time with another airline? NZ monoply routes aside, just look around, with DJ being the easiest.

1. flights are cheaper or the same price as last year (for the most part)

Definately not true. They are cunning - initially offering seat only fares at a cheaper rate, but if you look a year on, the seat only fares now cost the same/more than the old economy/works fare. But this is obviously working as people still think they are getting it cheaper.....

S2S has been such a success with me that I have flicked all TT flying to QF. Fares are competitive and you don't factor in the add-ons. Not sure if I am paying less to fly to Aus but I certainly am not diving into my wallet to fund these add-ons.

Before S2S was introduced, Air NZ was pleading that they were losing money across the Tasman - now they say they are making money. The market is definitely weaker so what has changed? My info certainly does NOT show a fall in air fares these days.

S2S was a great excuse to increase prices by stealth, with the lowest tier domestic Grab-a-seat fares changed to non-bag fares. If you want a bag, then you now pay more.

This is the same much maligned technique that biscuit (and other) manufacturers use when they reduce the size of their product, while holding prices the same.

This round of rather significant APD cuts is yet another price increase by stealth. AirNZ need to start being upfront about their fare increases; something they used to be.

...

I am happy with the changes.

I would rather pay less for flights and not worry about collecting $20 apd which is effectively just the same as getting a $20 discount on an overpriced flight.
...Obviously you don't live in Australia where for me, APD20 cannot simply be purchased for $20....
Obviously the financial success of S2s so far shows that by far and away most flights are personally funded. And that when business travelers chose they dont have much alternative to NZ anyway and also are still attached to status based priveleges - space+, lounge access, premium check in etc.I have not purchased a S2S fare for nearly 12 months and won't be going forward.

As for Status privileges I can earn *G quite easily without having to step onto a NZ flight.

1. flights are cheaper or the same price as last year (for the most part)

2. fuel etc costs continue to rise

3. Airpoints dollars are now devalued to = cash and the programme becomes a status program

I am happy with the changes.

I would rather pay less for flights and not worry about collecting $20 apd which is effectively just the same as getting a $20 discount on an overpriced flight.

Business Class tickets to Honolulu and Papeete have not dropped at all in cost with the introduction of Seats To Suit, but earning has been devalued by more than half.

I feel sorry for my NZ-based peers, but I buy regular Business Class tickets to both HNL and PPT, and I've just transferred all that revenue to Qantas.

Air NZ has made abundantly clear to me what its views on my custom are, and that message has been received, understood and acted upon.

I've never seen an airline devalue Business Class earning by anywhere close to 50% in one fell swoop - especially without cutting prices - but Air NZ just has.

Business Class tickets to Honolulu and Papeete have not dropped at all in cost with the introduction of Seats To Suit, but earning has been devalued by more than half.

I feel sorry for my NZ-based peers, but I buy regular Business Class tickets to both HNL and PPT, and I've just transferred all that revenue to Qantas.

Air NZ has made abundantly clear to me what its views on my custom are, and that message has been received, understood and acted upon.

I've never seen an airline devalue Business Class earning by anywhere close to 50% in one fell swoop - especially without cutting prices - but Air NZ just has.
Hi DCF I have been waiting for you to post and slightly disappointed with such a mute reply. I guess you have been too disillusioned with NZ now and will face the facts that NZ Airpoints is a rotten program.
However anyone who flies Business Class on NZ has the choice of many parnter airlines to credit to, which NZ will have to pay for.
Personally I am still happy with my decision to keep my QF status, with many advanages over NZ. But the health of that airline's international future is a worry.:eek:

Hi DCF I have been waiting for you to post and slightly disappointed with such a mute reply. I guess you have been too disillusioned with NZ now and will face the facts that NZ Airpoints is a rotten program.
However anyone who flies Business Class on NZ has the choice of many parnter airlines to credit to, which NZ will have to pay for.
Personally I am still happy with my decision to keep my QF status, with many advanages over NZ. But the health of that airline's international future is a worry.:eek:

Sometimes you just have to cut your losses and move on.

For me there have been a number of changes which have progressively made Air NZ less and less viable for me, and the introduction of OneUp instead of standby and confirmed upgrades was the point at which I moved the majority of my business elsewhere.

For me, the things which have driven me away have been, in order:

1. Loss of online stopover options at PPT, HNL, APW and NAN. Codeshares just don't work: no Status Points, no Airpoints, no upgrade options.

2. Loss of discounted child fares in Business Class.

3. Devaluation of Airpoints between 2005-10.

4. Introduction of Seats To Suit removing Business Class services from my home airport (Gold Coast) requiring an extra 3 hours per trip to drive up to Brisbane, long-term park my car and bus to the airport.

5. Introduction of OneSmart Mastercard, allowing NZ residents to buy Airpoints far more easily than Gold Elites in Australia could acquire them.

6. Removal of Standby Upgrades and Confirmed Upgrades - this is when I gave up and left.

7. Devaluation of Business Class Airpoints accrual by over 50% on my two primary routes - HNL and PPT.

Interestingly, points 2-7 actually hit high-value customers and Business Class passengers harder than occasional and economy class ones. I can take a hint.

I don't much like Qantas, but they have much more to offer me now than Air NZ does. Unfortunately.

I made the decision several weeks ago to stop supporting Airnz as they have done to me. I phoned Qantas corporate sales they got in touch with my travel agent to substantiate my annual spend. As a result I was given instant Qantas Platinum Status and also now receive a discount on my travel spend. Airnz sent a rep down from Auckland to see me but she admitted she had nothing to offer, so see you later Airnz. I still have 4 banked years as a Gold Elite and I have just rolled into this year so effectively 5 years up my sleeve if I do have to fly them somewhere. I would encourage anyone who is dissatisfied to shop around it only took me one phone call.

It just gets better, doesn't it?

Just finished a trip to bump up to Platinum with QF and will also let my GE expire after this year and a banked year.

As I'm planning on moving to Oz by end of the year anyway, time to think about who I'd like to keep as primary *A FFP, maybe go back to accruing with UA.

I made the decision several weeks ago to stop supporting Airnz as they have done to me. I phoned Qantas corporate sales they got in touch with my travel agent to substantiate my annual spend. As a result I was given instant Qantas Platinum Status and also now receive a discount on my travel spend. Airnz sent a rep down from Auckland to see me but she admitted she had nothing to offer, so see you later Airnz. I still have 4 banked years as a Gold Elite and I have just rolled into this year so effectively 5 years up my sleeve if I do have to fly them somewhere. I would encourage anyone who is dissatisfied to shop around it only took me one phone call.

Being a patriotic Kiwi it's sad that they are losing so many customers like yourself, DCF, Serfty etc. who obviously spend a &*^% load of money with them - but I really don't blame you, what they have done and how they have treated FFers has been abysmal. Mr Fyfe certainly has picked his time to abandon the Titanic

Hi DCF I have been waiting for you to post and slightly disappointed with such a mute reply.

+1 But the second reply made up for it^

Like most here, I'm really annoyed at the way NZ has changed the FF program over the last year or two. Dropping confirmed upgrades was the final nail in the coffin.
I have changed who I fly TT, because I want a business seat and NZ can't deliver. But for long haul to the US I'm still using NZ at the moment. Not because of misplaced 'loyalty', only because of business pricing. My last trip at the end of April was with NZ. I like the product and the flight crew are great, but the NZ FF program is now just not worth it.
So my GE status will drop down to G, and maybe even down to S depending on how many US trips I take on NZ. To Europe, I'll use one world to maintain WP in QF.

Sadly, in typical accountant-run fashion, I think that Air NZ now sees their FFP as a liability rather than a revenue generator, and they are consequently reducing their exposure to this liability.

Other changes made to products and services that they provide (e.g. S2S on TT services) have produced increased returns for them, and therefore vindicate their position. However, I think this is extremely short-term thinking, and while other airlines all move to the same process, they will find themselves with little to no strategic advantage over their competitors.

As others have said, I think it's time to cut my losses and move on. No more NZ*GE for me.