Ansett Australian Global Rewards - 70 billion points only worth A$140 million




FoxPro
Jan 22, 02, 6:53 pm
The Sydney Morning Herald today had this story:

http://www.smh.com.au/news/0201/23/national/national5.html

Agitation over the fate of Global Rewards points has grown after last week's determination by Ansett's administrators, Mark Mentha and Mark Korda, to give the 70 billion points - an average 27,000 for each member - a monetary value of $140 million.

Using the old airline's redemption calculator, this translated into 4.1 million return economy flights to Melbourne, 2.35 million return economy flights to Auckland, and 580,000 return business-class trips to Hong Kong.

Conservative estimates valued that as an unfunded liability of between $750 million and $1.25 billion. But the administrators have calculated each point to be worth about 0.2 cents.

With an estimated return of about 5 cents to unsecured creditors, the average points holder would receive only $54.


0524
Jan 22, 02, 7:06 pm
Ansett's 2.7 million frequent flyers won't have their frozen points revived. However, the airline's prospective owners, Solomon Lew and Lindsay Fox, look set to offer lucrative bonus points if once-loyal Ansett passengers join their new reward scheme and take flights. About 70 billion points were suspended when Ansett was grounded in September.

http://www.smh.com.au/news/0201/23/national/national5.html

RichardMEL
Jan 22, 02, 8:26 pm
Mark Korda was on breaky radio this morning saying that that $54 payout figure was vastly incorrect, and it would be more like $2.50 for an average 27,000 point holding.

Just a FYI.

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RichardMEL, UA 1K
A Star Alliance Member.




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