Choose from every seat, every flight, every time with Air New Zealand Airpoints™

Air New Zealand has revolutionised its Airpoints program by now rewarding members with Airpoints Dollars which can be used like real cash to purchase any seat on any flight unlike traditional schemes which have a limited number of heavily demanded seats on an average flight for frequent flyer members.

As of tomorrow Air New Zealand Airpoints Dollars will replace Airpoints as the programme currency. All Australian members' existing Airpoints balances will be converted to Airpoints Dollars, with 84 Airpoints equating to one Airpoints Dollar.

Able to be used just like cash when booking seats, one Airpoints Dollar will be equivalent to one Australian dollar, with members able to choose from every seat, every flight, on every Air New Zealand ticketed and operated flight.

Air New Zealand's Loyalty Manager John Whittaker said the changes to Airpoints make it one of the world's most innovative and attractive airline customer loyalty programmes

"The conversion ensures that the vast majority of journeys that could have been taken by Airpoints members with their reward points can still be taken with their new Airpoints Dollars balance," Mr Whittaker said.

"One of the greatest benefits is that even the lowest special fares, as well as children's fares, are available in Airpoints Dollars. Companion tickets will also still be available on international flights at the equivalent of 30% discount on the lowest published fare.

"So, if a seat is available on a flight, and members have enough Airpoints Dollars, they can buy it. It's as simple as that."

Mr Whittaker says the new programme is designed to more fairly reward frequent flyers.

"Under the existing programme, Airpoints are rewarded based on distance flown, rather than the fare paid. Many customers told us they felt this was unfair and in a business where we want to reward our most frequent and loyal customers, Air New Zealand agrees. From tomorrow dollars spent on travel will be recognised ahead of distance flown. This means there will be greater earning potential on most domestic, Tasman and Pacific Island fares, but lower earning on longhaul discounted economy fares."

Mr Whittaker says Air New Zealand has been extremely pleased with the level of support for the enhanced Airpoints programme.

"We put more than a year of research and planning into developing the new Airpoints programme. Much of that time was spent listening to our members and tailoring Airpoints to better meet their needs. It has been extremely pleasing to receive a lot of positive feedback from members since we announced the changes in July."

Many Australian Airpoints members travelling regularly to New Zealand will actually benefit from the enhancements to the programme by being able to earn more Airpoints Dollars and claim more reward flights than under the current programme.

For example a return flight between Sydney and Wellington under the old scheme would cost 30,000 Airpoints which converts to 357 Airpoints Dollars. Air New Zealand's current lowest return fare to Wellington from Sydney is $298, thus Airpoints members will actually save 60 Airpoints Dollars.

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Airpoints - Key Facts

• Airpoints was launched in 1991 and has more than one million members, with around 800,000 of these being in New Zealand. That means almost one in five New Zealanders are members. There are approximately 180,000 Australia-based members of Airpoints.
• More than 500,000 Airpoints reward seats are redeemed each year.
• On average, 5% of Air New Zealand customers are travelling on Airpoints reward tickets.
• From 16 November, Airpoints will be enhanced and allow members to purchase any seat on any Air New Zealand ticketed and operated flight.
• Airpoints will be convertible to both Australian and New Zealand Airpoints Dollars at a rate of 84 Airpoints to one Australian Airpoints Dollar and 75 Airpoints to one New Zealand Dollar.
• One Australian Airpoints Dollar is equal to one Australian Dollar and One New Zealand Airpoints Dollar is equal to one New Zealand Dollar.
• The current Airpoints policy will change to reward for the fare paid, rather than distance flown.
• Companion tickets are still available on international flights at the equivalent of 30% discount on the lowest published fare.
• When redeeming Airpoints Dollars, the cost of the channel chosen will be reflected in the price:
  • Redemptions on the internet will be free of any service charges.
  • Redemptions through the Travel Centres and call centres will incur the now standard booking fee per one way flight of A$20.
• An annual Airpoints membership fee of A$30 will apply unless members buy a commercial fare on any Air New Zealand flight in the previous 12 months
• The A$30 membership fee will be discounted to A$20, if paid online and statements and the Airpoints newsletter, Highpoints, are accessed online.
• New special low fares for Airpoints members redeeming on non-Express routes (primarily long haul)
• "Top ups" will no longer be available.
  • Airpoints currently allows customers to purchase 20% of the value required for a reward by paying for the additional reward points with cash.
  • This feature is only used on 3% of bookings.
  • The enhanced Airpoints scheme allows members to purchase one-way fares, so the minimum balance required for a flight redemption to New Zealand from Australia falls from 357 to 149.
• Airpoints Dollars will still be able to be used for standby upgrades. Confirmed upgrades are being introduced from 16 November 2004.
• Airpoints members can still redeem with Freedom Air.
• Tier status will be based on Airpoints Dollars earned flying from 16 November 2004. To allow customers to get comfortable with the new tier status qualification criteria, Air New Zealand will allow qualification under the existing or new criteria until 31 December 2005.