Changes to the Airpoints programme

On Tuesday 19 November a range of changes to the Airpoints programme were announced.

19 November 2013

These changes were made following an extensive review, which included seeking feedback from tens of thousands of members.

Members told us they like the simplicity and ease of being able to redeem their Airpoints Dollars™ for any seat on any flight. However, it was felt earning rates didn't fairly reward a member's spend, especially on shorthaul routes.

This is due to the Airpoints programme not keeping pace with changes at the airline including the introduction of seats to suit fare products and a changing route network. Therefore, from 31 March 2014 Airpoints Dollars can also be earned on any regularly available fare (excluding last minute greenlight fares via grabaseat.co.nz and fares purchased using Airpoints Dollars). In addition, Airpoints Dollar and Status Point earning rates will more accurately reward the value of the airfare purchased.

The summary of changes are:

Earning of Airpoints Dollars and Status Points

  • Earn Airpoints Dollars on every regularly available fare
  • Airpoints Dollar earning now applied consistently across the network with rates better aligned with the fare value in each individual booking class
  • Status Point earning rates will also be linked the same way to the airfare, more consistently recognising what customers spend
  • Simpler Airpoints Dollar and Status Point earning rates on partner airlines

Online improvements

Changes to Frequent Flyer benefits

Air New Zealand has also committed $1.8 billion to the development of our fleet. In addition to the above changes we will also be:

  • Upgrading our inflight entertainment systems
  • Beginning the refit of our Boeing 777-200 fleet
  • Looking forward to the arrival of our new Boeing 787-9s and two more 777-300 aircraft
  • Introducing additional ATR 72-600 and A320 planes as part of our domestic fleet expansion

Earning of Airpoints Dollars and Status Points

Due to the strong feedback we received from members highlighting that earning rates didn’t fairly reward the price paid for an airfare we have reviewed all earning rates.

New Airpoints Dollar earning rates take effect for any bookings made from 31 March 2014, while new Status Point earning rates will apply for any travel from 31 March 2014.

The changes will result in:

  • Airpoints Dollars becoming available on every regularly available fare (only excluding greenlight fares available through grabaseat.co.nz and redemption fares)
  • Higher Airpoints Dollar earning rates on 62% of all airfares
  • Recognising more regional, domestic and trans-Tasman travellers, with 78% of all Smart Saver and Flexi fare classes on these routes offering higher Status Point earning rates
  • Every fare class will now have its own Airpoints Dollar and Status Point earning rate, replacing the current structure which has the same earning rate for a collection of fare classes that can vary in price by hundreds of dollars
  • Several million more Airpoints Dollars will be earned by members each year

Airpoints Dollar earning changes

Here are some examples that demonstrate the new Airpoints Dollar earning rates on some of our routes.

Domestic examples
 
Current earn rate – Trips between AKL/WLG/CHC/ZQN/DUD
eg AKL-WLG, DUD-AKL, WLG-CHC, ZQN-AKL

5

10 or 15

 
New earn rate – Trips between AKL/WLG/CHC/ZQN/DUD

1 to 2

1 to 2

3 to 5

9 to 16

 
Current earn rate – Regional trips under 800km
e.g. ROT-AKL, WLG-NSN, WRE-AKL

5

10 or 15

 
New earn rate – Regional trips under 800km

1 to 2

1 to 2

3 to 5

9 to 14

 
Current earn rate – Regional trips over 800km
e.g. IVC-AKL, TIU-AKL, GIS-ZQN, KAT-CHC

5

10 or 15

 
New earn rate – Regional trips over 800km

2 to 3

2 to 3

4 to 8

16 to 24

Tasman examples
 
Current earn rate – Sydney, Brisbane, Melbourne, Adelaide, Cairns 

5 or 10

15 or 20

5 or 10

15 or 20

5 or 10

15 or 20

50

 
New earn rate Sydney, Brisbane, Melbourne

4 to 6

7 to 16

7 to 10

11 to 26

17 to 24

29 to 56

50 to 76

 
New earn rate Adelaide/Cairns

6 to 9

10 to 20

9 to 14

16 to 31

21 to 29

35 to 60

79 to 112

 
Current earn rate Perth

10 or 15

20 or 25

10 or 15

20 or 25

10 or 15

20 or 25

60

 
New earn rate Perth

10 to 13

15 to 26

16 to 21

23 to 41

36 to 47

52 to 87

107 to 155

Long haul examples
 
Current earn rate – Los Angeles/San Francisco

40 or 50

85 or 120

135

305

 
New earn rate – Los Angeles/San Francisco

 39 to 50

53 to 80

105 to 203

280 to 427

 
Current earn rate - Hong Kong/Shanghai

35 or 40

60 or 85

100

215

 
New earn rate - Hong Kong/Shanghai

36 to 46

48 to 72

90 to 137

196 to 263

 
Current earn rate - London

55 or 65

105 or 145

170

375

 
New earn rate - London

67 to 90

98 to 128

168 to 256

368 to 497

In general, there is:

  • An increased spread of earning rates across regional and main trunk (flights between Auckland, Wellington, Christchurch, Dunedin and Queenstown) domestic fares, with significant increases on longer regional routes
  • There are decreases on many Seat and Seat + Bag fares but increases on most Works, Works Deluxe and Business Class fares across the short haul international network
  • There are a range of increases and decreases across long haul routes

To see what you could earn on your future flights click here to check on our new look-up table.

New Airpoints Dollar earning rates take effect for any bookings made from 31 March 2014.

Status Point earning changes

Here are some examples that demonstrate the new Status Points earning rates on some of our routes.

Domestic examples
 
Current earn rate – Trips between AKL/WLG/CHC/ZQN/DUD
eg AKL-WLG, DUD-AKL, WLG-CHC, ZQN-AKL

12

12

12

12 or 16

 
New earn rate – Trips between AKL/WLG/CHC/ZQN/DUD

8

8

10 to 15

16 to 31

 
Current earn rate – Regional trips under 800km
e.g. ROT-AKL, WLG-NSN, WRE-AKL

8

8

8

8 or 11

 
New earn rate – Regional trips under 800km

8

8

9 to 12

13 to 21

 
Current earn rate – Regional trips over 800km
e.g. IVC-AKL, TIU-AKL, GIS-ZQN, KAT-CHC

12

12

12

12 or 16

 
New earn rate – Regional trips over 800km

9 to 13

9 to 13

15 to 20

22 to 36

Tasman examples
 
Current earn rate – Sydney, Brisbane, Melbourne, Adelaide, Cairns 

30

50

30

50

30

50

85

 
New earn rate Sydney, Brisbane, Melbourne

20 to 30

35 to 83

23 to 33

39 to 87

35 to 48

58 to 110

71 to 106

 
New earn rate Adelaide/Cairns

28 to 43

51 to 100

31 to 46

53 to 101

42 to 58

67 to 117

109 to 148

 
Current earn rate Perth

50

70

50

70

50

70

110

 
New earn rate Perth

49 to 65

72 to 128

53 to 69

76 to 132

70 to 91

101 to 168

148 to 215

Long haul examples
 
Current earn rate – Los Angeles/San Francisco

80

115

130

300

 
New earn rate – Los Angeles/San Francisco

60 to 77

81 to 123

127 to 223

281 to 409

 
Current earn rate Hong Kong/Shanghai

65

80

100

210

 
New earn rate – Hong Kong/Shanghai

56 to 72

75 to 111

100 to 151

188 to 260

 
Current earn rate – London

110

140

165

370

 
New earn rate – London

104 to 139

150 to 196

185 to 281

352 to 476

To achieve consistency of recognition across the network this has meant:

  • Earning reductions on some of our cheapest grabaseat and some Smart Saver fares network wide
  • Significant increases on our domestic Flexi fares
  • Increases across the majority of Tasman fares and also international Premium Economy and Business Class fare classes

Overall, we expect the same number of customers in our Gold and Elite tiers.

To make it easier to see which Airpoints Dollar and Status Point earn rates you’ll get, we’ve created a look-up table so you can see earning rates by route. This look-up table will improve further prior to 31 March 2014 to enable you to search specifically by fare class, route and cabin.

Simplified earning structure when travelling on our partner airlines

Earning rates on our partner airlines were difficult to follow with different earn rates between different geographic zones as well as separate distance based earn rates within zones.

We’ve endeavoured to make it simpler, with earning rates now in standardised 1,000 kilometre distance bands. For any travel from 31 March 2014 you will earn Airpoints Dollars and Status Points at these rates, which you can see by using the new look-up table.

The new frequent flyer website

A real frustration for members has been the limited functionality of myairnz, particularly the inability to view it on some computers and tablet or mobile devices.

From Tuesday 19 November we have a new frequent flyer portal for you located through the Air New Zealand website. It's easier to use on all computers, optimised for tablets and packed with improved features.

The new portal enables you to check you're making the most of your tier benefits, view your balances in more detail, track your status progress easily and manage your upcoming flights. You can sign in directly through the Air New Zealand website.

To sign in click on the "sign in" button in the top right corner of the Air New Zealand website. The username and password that you used for myairnz will sign you in to your new look Air New Zealand account. Once signed in you will find all your personal information conveniently located at your fingertips. The best way to see all the new features is to sign in now and explore. We have also created some handy hints to get your started.

In addition, OneSmart users told us they wanted an easier way to manage their money while on the go so we've recently introduced a new OneSmart mobile app to make this possible.

And in just a few weeks we'll be making improvements to the Air New Zealand mobile app to make managing your bookings and checking in easier.

Find out what you'll earn at time of booking

You've told us you want to see what Airpoints Dollars and Status Points you'll earn at the time of booking your flight. Now you can.

Your expected Airpoints Dollars and Status Points earning on domestic flights is now displayed when selecting a fare online. Simply choose the flight and fare type you would like to purchase and your estimated earnings will appear on the right hand side of your screen under your flight costs.

We expect the display of Airpoints Dollars and Status Points earnings on international flights to be available in early 2014.

New short haul recognition upgrade

To say thank you to our most frequent flyers we are pleased to offer an exclusive new benefit to our Elite members. In addition to the two current Recognition Upgrades, received every membership year, Elite members will now receive an additional short haul Recognition Upgrade for use on trans-Tasman and Pacific Island short haul flights (does not include medium haul destinations of Perth, Bali and Honolulu).

Elite members will see this short haul Recognition Upgrade appear in their account from 31 March 2014.

Banked year threshold change

The introduction in 2011 of the Banked Elite year benefit received at 2,000 Status Points has now proven much easier to attain with the advent of Status Point earning through credit cards. For this reason we are having to increase the threshold required to obtain this benefit and align it with the base Elite threshold earning which requires 60% of Status Points earned to be on Air New Zealand flights.

As a result, from 31 March 2014, the Banked Year threshold will be set at 2,400 Status Points with 1,400 required to be earned on Air New Zealand flights. Threshold gifts will be available to Elite members at 3,000 and 5,000 Status Points.

Elite Priority One

Our top individual spending travellers can look forward to a personal invitation to be part of an exclusive, invitation-only annual membership programme. If you are invited to be part of Elite Priority One you will learn more about the exclusive benefits available.

Enjoy your new tier benefits faster

Achieving a higher tier has previously meant members waiting up to seven weeks for their card to arrive before they can enjoy their status. We've made functional improvements meaning when someone achieves a higher tier they'll now wait no more than seven days for their new status to take effect.

Lounge upgrades

We've made significant improvements recently to our Queenstown, Auckland and Christchurch domestic lounges and opened the brand new Star Alliance lounge in Los Angeles.

In 2014, we are planning a significant overhaul of the Auckland International Lounge and are investigating the addition of a new regional express lounge at Auckland domestic, along with upgrading our Sydney and Brisbane lounges.

Airpoints branding gets a refresh

Air New Zealand has recently unveiled new aircraft livery and branding and now it's the Airpoints programme's turn to be refreshed.

You'll notice the new look when you log in to your Air New Zealand account. Changes to other elements will be rolled out progressively during the first half of 2014. New cards will be issued from mid 2014 with distribution to coincide with your card's expiry date.

As part of our programme refresh, "Gold Elite" status is being renamed "Elite". Also, in recognition of someone's tenure at Elite, the number of years a members has been consecutively at that tier will be reflected on their membership card. For example, when Elite 5 is presented on a card this reflects the 5 consecutive years an Elite member has been at this tier.