Hi Peter,

Don’t mean to sound negative in this post – appreciate the analysis you have done – just disagree with the examples used.

<<Let's take several long distance trips to arrive at an average (full fare economy)>>

Only impacts less than 5% of long haul economy passengers (I think the actual number is less than 1%) - how many people do you know that pay $7000 for an economy ticket SYD-LAX (most people travel will travel business class for this price rather than full economy). So the relavent comparision is discount economy (@ the current 70% of kms to 100% of miles). When you redo the numbers with this you will see the far majority of members are better of. I posted the % in a post above. Also if you include other Asian routes in your basket of routes (route like SYD-HKG) you will find the percentage differences even bigger (as the reward cost drops from 80,000 pts to 50,000 pts).

REMEMBER: Ask yourself if you have ever paid $7000 SYD-LAX or $9000 SYD-LHR… these are the full economy rates.

So lets look at SYD-LAX example: how many trips does it take to earn a free trip
Old System: 6
New System – Bronze: 5
New System – Silver: 4
New System – Gold: 4
New System – Platinum: 3


<<Thus had you flown Qantas you would only be 15,800/80,000 * 100 = 19.75% of the way towards a free ticket to LA again. If you fly United or Air New Zealand you are 15,800/60,000 * 100 = 26.33% of the way towards a free flight. >>

Assumes you are only flying SYD-LAX. No connecting flights earning the minimum mileage bonus (1000 points). For example HBA-MEL-LAX or other combinations. This also changes the reward costs.

Lets add a fairer comparison of the two programs. Lets pick similar distance routes in each of the home markets for example in US (LAX-SFO – 338 miles / 543 kms) and Oz (SYD-MEL – 438 miles / 704 kms) + (SYD-CBR – 146 miles / 236 kms) – this gives one longer and one shorter. Both high volume business and leisure routes. On UAL you earn 338 miles (no minimum earn on shuttle) and the redemption costs you 25,000 points – 37 trips to get one free trip. On Qantas for both SYD-MEL and SYD-CBR it only takes 10 trips to earn one free one.

Note using a UAL program on SYD-MEL = 23 trips required to get one free; SYD-CBR = 69 trips to get one free.

So it is easy on both sides to pick examples where one is clearly better than the other, but I think it is over generalising to say “UAL’s” program is always better.

<<Looking at domestic redemptions the difference becomes more stark. You require 30,000 miles for a Melbourne to Perth round trip with QFF but only 20,000 Mileage Plus miles. Our 15,800 miles gets you 79% of the way to Perth but Qantas only gets you 52.66% of the way. >>

Ignores the minimum earn bonus of 1000 miles for every sector, which UAL does not offer. Also I find it interesting that the basic reward in US costs 25,000 miles and in Austrlia only 20,000 miles – why do you think this is? How long will it go on for?

Also ignores the Qantas partner network in Australia and NZ – over 100 different partners to earn additional points on.

Lets add another comparison – Australian Credit Card versus US credit card program. As credit cards a becoming a more important component of point earning.

US$1=A$2… so right of the back you earn double the number of miles.

Also look at a product like QTVC that earns 2 points for every Australian dollar spent overseas. So when I am in the US I get 4 miles for every US$ spent versus 1.


Cheers… Bruce