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

Air New Zealand today announced enhancements that make Airpoints one of the world's most innovative and attractive airline customer loyalty programmes.

Managing Director and Chief Executive Officer Ralph Norris says one of the key features of the enhanced programme is that Airpoints members will be able to book any seat on any Air New Zealand ticketed and operated flight.

"Over the past year we have spent a lot of time talking to Airpoints members to better understand how we can improve the programme. Members were clear that they wanted us to make it easier for them to claim reward flights on Air New Zealand.

I'm delighted that after a lot of hard work we've been able to deliver to members the flexibility they sought," Mr Norris says.

From 16 November, Air New Zealand Airpoints Dollars will replace Airpoints as the programme currency.

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.

"One of the great benefits of moving to Airpoints Dollars 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," said Mr Norris.

More than one million Air New Zealand customers are Airpoints members, with 780,000 of these living in New Zealand and 180,000 based in Australia.

On 16 November, all members' existing Airpoints balances will be converted to Airpoints Dollars with 84 Airpoints equating to one Australian Airpoints Dollar.

Mr Norris says 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.

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, Melbourne or Brisbane and Christchurch currently costs 30,000 Airpoints which converts to 358 Airpoints Dollars.

Air New Zealand's current lowest return fare to Christchurch is $338, thus Airpoints members will actually save 20 Airpoints Dollars.

Australian Airpoints members will also be able to use their Airpoints Dollars to 'buy' sale airfares, for example airfares between Melbourne and Christchurch are currently on sale until 31 July at just $250 return. So based on the previous example a member would save 108 Airpoints Dollars.

As an earning rate example, an Australian Airpoints member would currently have to travel between Sydney and Auckland 10 times before earning enough points to claim a reward return trip on the same sector. With the new enhancements in place, only eight return trips on the lowest Airpoints Dollar earning airfare would be required to claim a reward trip or just four return trips paying the full economy fare.

Mr Norris 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. An Australian Airpoints member currently paying around $3,387 for a discount economy return flight between Sydney and London would receive 29,990 Airpoints, rewarding them nearly enough for a return trans-Tasman flight (30,000 Airpoints). However, to earn the same reward, a frequent trans-Tasman customer would have to fly return between Sydney and Auckland 10 times at a cost of at least $4,980," says Mr Norris.

"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. Therefore, from 16 November, dollars spent on travel will be recognised ahead of distance flown. This means there will be greater earning potential on most New Zealand domestic, Tasman and Pacific Island fares, but lower earning on long haul discounted economy fares."

From November Airpoints members redeeming Airpoints Dollars will also have exclusive access to lower prices on some long haul Air New Zealand services. For example Sydney to San Francisco return will be available for 1,188 Airpoints Dollars or Brisbane to London for just 1,755 Airpoints Dollars.

Mr Norris says the enhanced Airpoints programme is a further reflection of Air New Zealand's commitment to being innovative, efficient and nimble.

"For an airline to survive in this fiercely competitive era of air transport, it must always strive to stay a step ahead of the competition, while at the same time delivering maximum value to customers and shareholders.

"Today's announcement is a further signal that Air New Zealand is committed to delivering innovative product offerings."

The enhanced Airpoints programme is the latest in a series of recent initiatives undertaken that reflect Air New Zealand's commitment to delivering a uniquely Kiwi experience and everyday low fares. Others include:

• The launch of everyday low Express fares for Domestic, Tasman and Pacific travel.
• The purchase of eight Boeing 777-200 ER and two Boeing 7E7 aircraft as well as purchase rights for a further 42 long haul aircraft.
• The interior upgrade of the 747-400 fleet, including new lie-flat seats for premium customers, new seats (featuring seat-back screens) for economy customers and a new on-demand in-flight entertainment system.
• The appointment of leading New Zealand fashion house Zambesi to design new uniforms for cabin crew, pilots and frontline staff.
• The use of traditional indigenous ingredients in some long haul meal choices and greater emphasis on premium New Zealand wines.
• New routes, such as Auckland-San Francisco and Christchurch-Los Angeles.

Airpoints - Key Facts

• Airpoints was launched in 1991 and has more than one million members, with 780,000 of these being in New Zealand and 180,000 based in Australia.
• 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.
• Programme partners include Star Alliance airline members, Virgin Atlantic and Mexicana Airlines. Card members in Australia include Diners Club Australia, BankWest extra Visa Card, Westpac Australia Altitude Card and American Express (until 31 Dec 2004).
• From 16 November, Airpoints will be enhanced and allow members to purchase any seat on any 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 Airpoints Dollar.
• One Australian Airpoints Dollar is equal to one Australian Dollar and One New Zealand Airpoints Dollar is equal to one New Zealand Dollar.
• All taxes, levies and surcharges cannot be paid for in Airpoints Dollars.
• 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 trans-tasman flight redemption falls from 358 Airpoints Dollars to 149 Airpoints Dollars.
• 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 from flying from 16th November 2004. However both Airpoints Dollars and Status Credits will be used to determine a members status until 2006. Members will receive the highest status under either method.