Loyalty programs are a cash cow for airlines to the point that some airlines sell a stake or the whole cow for a quick profit hit. Those who have taken the gamble tend to not seen it pay off and more often than not find themselves paying for it, or in the case of Air Canada creating a whole new competing loyalty program.
In 2014 Virgin sold part of its Velocity business to Affinity Equity Partners (AEP). Since the sale the program it has grown to be the third biggest loyalty program in Australia behind Qantas and Woolworths. Virgin now has sellers remorse and has enter an agreement to buy back the 35 per cent of its Velocity program it sold to AEP for $700 million. This is more than double what they sold it for to the group five years earlier.
Virgin has experienced some rocky annual results of late but the shining star of their company has been the Velocity division which saw earnings (before interest and tax) up 12 per cent to $122.2 million.
Personally I think this is a smart move by Virgin which in the end after a initial financial hit see the company not only in a stronger position financially but increase value with its customers for years to come!
Before the wheels have even left the ground on the first Qantas Points Plane, the airline announced this week it would be doing another Points Plane…this time to Los Angeles! What adds a bit more excitement to this announcement is that the B747 will be used, a rare appearance on the Australian – American route hop! It’s a great opportunity for B747 lover like myself who wants to see the Queen of the Skies off in style by flying her one last time (naturally).
With Qantas set to retire all its beautiful B747 fleet by the end of 2020 I cannot stress how great of an opportunity this is. Flight QF99 will depart from SYD for LAX on Sunday 13 October 2019.
Here’s what you need (points wise and excluding those pesky taxes) that you’ll need to secure the seat of your dreams:
- 96,000 Qantas Points for business class
- 72,000 Qantas Points for premium economy
- 41,900 Qantas Points for economy
Qantas as part of its transition fleet plan will gradually replace its 747-400s with the company’s favourite plane of late, the B787 Dreamliner (I’m still yet to be a fan like Mr Alan Joyce).
Will you be booking an seat on the second Points Plane? Keen to hear your thoughts.
Qantas a couple of days ago without notice announced cryptically that it would be overhauling its frequent flyer program. Like many I was in a bit of a sweat about it thinking the potential was endless for the airline to come in with the wrecking ball and make the program to be frank, a lot worse. Today, I am glad to report that it isn’t anywhere near the doom and gloom that was reported online. So what has been announced and how will it affect you?
First up Qantas has announced there’ll be more seats up for grabs, with those dreaded carrier charges on most international Qantas flights reduced by as much as half. This is a big win for many as the carrier charges for QF currently have a large sting to them compared to their rivals when redeeming. You” require fewer Qantas Points when booking an economy seat on international flights but here’s the sting. Those looking to book something with a bit more leg room will be hit with higher amount of points for seats in premium economy, business class and first class.
The next bit of news is something I was apart of in terms of research late last year by the airline and this is the Qantas Points Club. Details are still sketchy but basically the Qantas Points Club will operate adjunct to the Qantas Frequent Flyer scheme, unlocking flight and travel benefits for non-flying members including lounge access and bonus status credits. I think this has a lot of potential and am keen to see how it is delivered when it is launched December 2019.
Thirdly Qantas has earmarked five million seats on Qantas domestic and international flights annually, with up to 30% more premium economy, business class and even first class seats to popular destinations such as Singapore, London, Los Angeles and Tokyo. This is on top of 3-5 million seats on partner airlines, including new partners such as Air New Zealand, KLM Bangkok Airways and Air France.
Finally Qantas has opened up a new level of lifetime status, the coveted Lifetime Platinum but the catch is, to achieve it, it’s an eye watering and almost impossible 75K status credits to achieve. The new Lifetime Platinum status will commence in September 2019.
So what do you think of the announcement? Anything that excites or annoys you? Keen to hear your thoughts…
Qantas has announced it’ll give Sydney-Auckland route travellers some summer lovin’ this summer with their flight being upgraded from the usual workhorse B737-800 to their new Dreamliner B787.
The upgraded plane will be in operation from . Whilst limited in terms of time offering, this is an exciting announcement by the airline as it will be the first time Qantas will offer their Premium Economy product on a Tasman route. Right now the premium economy seat is on sale for roughly the same price as a economy seat, so if you’re quick on it, you could snap yourself up a bargain whilst enjoying a bit more space and luxury for the pleasure.
Qantas has eight 787s in its fleet, with six additional aircraft due for delivery between October 2019 and mid 2020.
For years I heard numerous things about the North Korean national carrier Air Koryo. Frankly the feedback wasn’t great! Frequently the airline has been named one of the worst airlines in the world alongside the likes of Lion Air and Ryan Air. Besides the thrill I was experiencing from going into the unknown with North Korea, I was equally enthuiastic about the prospect of flying their airline. Was the airline really as terrible as it was made out to be or was it simply misunderstood?! I flew to DPRK to find out…
Economy 26A. Seated in the middle of the first section of economy the fitout was as I had expected, retro! Surprisingly the red and grey leather chair was comfortable despite probably being fitted years ago and the leg room more than ample. No other wow factor here but more satisfactory than I expected in terms of comfort.
Whilst there wasn’t any seat back entertainment, there was a drop down screen option that played some rather interesting North Korean films and poor soap operas. There was also the odd propganda video or two thrown in for good measure. It just wouldn’t be DPRK without one now wouldn’t it?!
The Bread and Butter (food and drink)
Again another food/ drink rumour that was debunked on this flight. I had seen a few images online of the infamous ‘Koryo Burger’ where the meat was unidentifiable and the burger inedible. The repulsiveness of the burger had garnered itself a cult following with many who had flown Air Koryo coming there for the burger.
The Air Koryo staff came through with a decent meal and drinks service. I was offered water, sparkling soda (basically soft drink), tea and coffee. I ordered some of the grape soda which I admit is delicious addictive. Now to the burger that was placed on my tray. On observation it didn’t look as bad I had imagined. The ingredients were simple; meat patty, lettuce, cheese and sauce. I went to take a bite and wow, it was packed full of flavour. The burger at best reminded me of a ramen burger in terms of flavour. It was slightly peppery yet had an asian beef zest to it. Admittedly I enjoyed this burger quite a bit and would have easily ordered a second. Yes the burger was that good!
A little later into the flight staff came through with a second drinks service. I ordered a coffee and a cup of the orange soda. Both quenched my thirst and were nothing out of the ordinary in terms of what you would get onboard anywhere else. Again the service was efficient and friendly, something I did not expect considering their so called one star SKYTRAX rating.
Air Koryo really did surprise me. The staff were well dressed, the presentation of the plane was clean and the service was relatively good. I don’t believe for a minute that the national carrier warrants the one star rating it has been unfairly given. Perhaps some people have rated this too harshly without taking into consideration the competition. To be frank I got more bang for my buck and better service on here than I have done with a number of low cost (and even some full service) carriers.
The food and drinks whilst nothing to write home about, were satisfactory. I believe the asian flavour of the burger for some travellers may have been a little too left of field for their tastebuds. The burger certainly did not deserve the tag of inedible that it had been given.
All in all my experience flying Air Koryo was smooth flying. I would without hesitation fly this airline again.
Have you ever flown with Air Koryo or dared to try one of their Koryo burgers? Was your experience better than expected like mine or was it turbulent like the airline’s SKYTRAX rating? Keen to hear your thoughts.
Lufthansa is ready to upgrade their aging aircraft of A340s, B747s (and surprisingly the not so aging A380) with a fresh order of 40 new aircraft from Airbus between 2022 and 2027. That’s right, the aging rockstar of the European skies is getting a makeover to a more youthful image thanks to a fresh batch of planes.
So how does the order stack up?
- Lufthansa will add an addition 20 A350s to its already ordered 25 A350 order; in total 45 aircraft
- Lufthansa will add an additional 20 Boeing 787-9s to its fleet
- Lufthansa will remove six of their 14 Airbus A380s in 2022 and 2023, instead replacing them with their newly ordered A350s
The reasoning behind such a sweeping change is that the Lufthansa Group have identified a need to invest in more fuel efficient aircraft going forward as part of their commitment to sustainability. It is a pity that the A380 has come under this as their version of the aircraft in my opinion is one of the best in the skies. Thankfully not all of their A380 aircraft are being sold on (in fact it less than half of their total A380 fleet).
In addition having visited the Boeing factory last year I am surprised about the B747 announcement considering that Boeing has further orders for the aircraft from Lufthansa at the time (October 2018).
I’ll be curious to see how the fleet evolves for Lufthansa but will hold my breath on this one as the airline has had some mixed results in the past when it comes to new fleet rollouts.
Now here is an announcement or more ‘enhancement’ that I can get behind. Qantas this week announced that domestic passengers will soon be able to board flights with heavier carry-on bags after responding to pressure from passengers over its ‘limiting’ 7 kg allowance.
Commencing March 25, travellers will be allowed to carry on one item weighing as much as 10 kgs and a second piece up to 4 kgs, bringing the total cabin allowance to 14 kgs per person. In addition passengers are allowed to bring one small personal item bag (ie. handbag or laptop bag).
This is quite generous and shows for once an airline actually listening to what people want rather than telling people what they should have. That said any cabin baggage weighing greater than 10 kg will still need to be checked in.
Well done Qantas. This is one move that I hope other airlines won’t be weighed down in making a reactionary decision and following.