Flyers win new deal on points
QANTAS frequent flyers will be able to use their points to pay for costly taxes and surcharges when redeeming domestic flights.
Loyalty program members are now slugged about $100 in charges for a supposedly free return flight to Sydney.
The charges include $62 in fuel levies, government taxes and airport fees.
Other airlines also force their frequent flyers to pay the extras.
But from November 1, Qantas will allow its frequent flyers to cover the cost by using extra points, not cash.
It is believed the airline is considering a flat rate of about 6000 points for each domestic-sector booking.
This means about 28,000 points will be needed for a return flight to Sydney.
Qantas will consider extending the idea to international flights after evaluating its use by domestic frequent flyers.
A redeemed return flight to London costs about $400 in taxes and charges.
Qantas executive general manager John Borghetti said yesterday that the rising costs were compromising the frequent flyer scheme.
“It’s not an ideal way to treat your loyal passengers,” he said.
“The feedback we’re getting is that people would prefer to pay for these charges with points rather than cash.
“We give people choice.”
Flyers who wanted to pay in cash would still be able to, he said.
Qantas’s move will put pressure on rival Virgin Blue to adopt a similar policy for its Velocity reward program.
Qantas members redeem more than three million seats a year, including in upgrades.
Airlines have been forced to increase their fuel levies because of soaring oil prices.
The levy for a one-way flight on Qantas or Jetstar is $31, and up to $98 for an international sector.
Virgin charges $19 domestically and $35 for its Pacific services.
The airline recently resisted an industry trend to increase the levy, but said it would consider fare rises.