CHCflyer

Why does my heart sink when I read this?
Chief Executive Officer Greg Foran will provide more context at the airline’s Annual Shareholders’ Meeting on 29 September, which will include a discussion of the airline’s network focus, enhancements to its AirpointsTM loyalty programme, sustainability focus and digital priorities.

kiwicyclo

Read as "enhanced" for Air NZ, probably not enhanced for the customer . . . . .

gratn

I share the OPs concern but can’t blame Air NZ for acting. Many frequent fliers are going to see their status drop next year, after the freebie extra year expires. Air NZ may be going to use this, and the expected medium term decline in international travel, as an opportunity to reimagine the Air Points programme.

SFO_FT

The announcement is likely the introduction of new NZ-based earning partners, to ensure continued engagement with members.

mmonster

It's said but true, I have the same feeling, I do not really know what 'enhancement' mean to us - their customers, they had been slashing a lot of benefit and depreciated the programe over the years and I am not confident that there would be any thing that I look forward to.

My struggle at the moment, which I admit is a first world problem, not able to fly. I have already accumulated all points that I can possibly early on my CR card and I am still around 350 short and I have only 3 months. I used to do many TT return in J, which suits quite well but now I cannot do that and I do not need to travel as much for work domestically. Looking at the SP earn rates, even for flexi-date, it is not all that great tbh - I know they have given me a bonus year, a part of me still want to support NZ by doing a few runs.. but it is actually pointless when Auckland is still in level 2.5 and the rest of the country is in level 2, and also it is getting extremely expensive...

I wonder if they can extend the 12 month to 18 month or more? It is that I do not want to fly, it is that I cannot - I feel so stuck....

SeaProf

The situation is even more dire for those of us based in North America. My year ends in 10 days. I will fall 300 points short of Elite because 3 international trips, all in J or A, were canceled due to the pandemic. Being based in North America and not eligible for the credit card, I have no means other than flying to earn points, and with the virus that isn't going to happen.

Thus, I'll be using the gifted banked year this coming year, but there is absolutely no hope that I will be flying enough to keep elite, given the current international travel situation and the USA's "status". Thus, the banked year will be effectively wasted and a year from now I will be dropping down after 8 years of being Elite.

But at least I'm still healthy and employed, so in the grand scheme of things I have little to complain about.

gratn

This is why I think a poster above is correct and Air NZ is focusing on “enhancements” relating to partner business offerings right now. I received a survey last week on this topic, so Air NZ is definitely thinking about it.

The banked year is giving everyone breathing space while things settle down, but if Air NZ does not return to its former international network next year then the number of Elites will drop significantly. That seems reasonable to me, and the number of Elites will rebound as/when international travel resumes. I am just about to re-qualify off the back of mostly domestic travel, and would love to see Air NZ make this a bit easier, but I doubt that will happen as there’s nothing in it for the airline.

The other issue Air NZ may be pondering is how to reward Elites (and Golds for that matter). In the current environment many benefits like RUs are basically worthless, so all we get for being Elite or Gold is Koru lounge access, priority seating, and a few free car parks. It would be nice to see Air NZ look at earning bonuses or something....

sbiddle

Air NZ want to grow the places you can use Airpoints. In recent weeks there have been a lot of new places pop up including Cadrona and Treble Cone (you can buy lift passes with APD).

mmonster

that sounds good - but for me, I still prefer to use that with NZ - I have hardly used any of my APD with any other providers but I am more concerned about my status (first world problem, I know). I do not mind paying a bit extra but then I would not mind if they double of triple SP for some people... or maybe that is too risky of a move while Auckland is still in level 2.5 and rest of NZ in level 2?

Hector99

There is a whole new class of people who are gaining status too (who are probably unaware of this forum tbh!). Those who fly domestically who, in a pre Covid world, would maybe creak over to high silver/low gold are now going to hit elite easily. The cheap fare buckets have gone so every pretty much every trunk route gets 16 SP each way, realistically 21-23 SP each way if don't book a month in advance. One AKL/WLG return a fortnight gets you Elite (assuming have the correct cc)

If you consider NZ as a domestic airline now, maybe TT in a year then Elite gets you nothing over simple Koru. RUs useless.

Once JQ comes back, lots of loyalty will end up there to gain QF status. I cannot see a benefit of Elite banked years in a climate where the loyalty scheme is in a dicey position, even if the carrier itself is likely to survive.

cavemanzk

Could exiting *A be apart of the enhancements? Surely the *A membership is an huge expense right now, that is reaping little or no reward to the airline.

mmonster

ummmm - I do not have any idea how much each Airline pays for the membership, I only know OW charges an exit fee whereas *A do not - but all is from news so it may not be correct.

if that is the logic, then all three major alliances should just dissolve as there is no real value - personally, while this may be true for now, it is a matter of sustainability. I am sure NZ definitely gained from being a member and as a member of *A as a customer, I too, have benefited from a great deal = lounges, extra bag, priority baggage/boarding, good seat all pays a part - I know it does not matter for some but it is a perk for me.

Assuming that the main alliances/NZ (as well as some other airlines) will still be here in 5, 10 year's time, it would be a different board game to join again. I do not think it is like a tap that can be turned on and off, the cost of rejoining may be more in the future as systems may no longer be compliant - the lead time in joining is usually at least 12 months in the past so I would think that there are much work - unless, the airline determine that there is absolutely not beneficial to them and their clients. I can see the synergies with RTW fares again and that will give an upper hand in getting people to travel/fly again -

What I am trying to say is that it is not a decision that they will take lightly - NZ (as a country and an airline) is simply too small in the world scale of things - the fact that *A do not have a partner in Australia (after the relationship with VA gone sour) is one that *A really want to patch in a pre-COVID world. Just my two cents...

Xiaotung

*A memership fee is based on revenue. If you have no revenue, you pay no membership fee (or very little). Considering how much flying the likes of UA, LH, CA have at the moment, they are carrying most of the alliance fees and NZ revenue is negligible, hence no reason to exit the alliance due to cost.

I just hope they would find a way to tap into the larger Australian market.

sbiddle

Regardless of when we see a recovery (and my gut feeling is that this will be quicker than many think) the simple fact is travel in general is going to be very different to the experience that we've been used to over the past decade or so. You've got an entire global industry that's seen a massive disruption with massive financial implications. Whether it simply be far fewer hotels to chose from as many shut up, cutbacks to things such as executive lounges, reduced flight frequency and reduced loyalty program benefits, we are all going to be affected. The big question is whether the "old" normal ever returns or whether we face a new normal going forward.

I also think the future of Virgin Australia will be very interesting. There are (and always have been) significant pros and cons to them joining an alliance. Their approach of literally partnering with everybody offered significant benefits to many of their customers without having to actually join an alliance. Going forward I think it'll be very interesting to see the relationship between VA and NZ with virtually all of the exec team at NZ who were part of the bad blood having now gone, a whole new owner of VA, and more importantly the effects of Covid on travel for the next few years.

IMHO a tie-up between NZ and VA again would not be the craziest of thing that could happen - and VA joining *A may have had the balance tipped from yeah nah to yeah since they will have no international flights. They are going to desperate for partnerships for domestic connections off every other airline flying into Australia once normality resumes.

nzkarit

And AirNZ most probably needs *A to help feed them traffic. Else pax go with QANTAS and their network and alliance.