The Australian Competition and Consumer Commission welcomes the consumer focussed reforms to the Qantas frequent flyer scheme announced today, ACCC Chairman, Professor Allan Fels, said.
"The ACCC is currently investigating frequent flyer schemes, and is pleased Qantas has internally reviewed its program in conjunction with the ACCC's industry wide inquiry.
Qantas announced today that, effective from 15 September 2001:
- consumers will earn Qantas frequent flyer points based on miles travelled, not kilometres
- the points of active members (those who earn or redeem points from their account at least once every three years) will no longer expire - effective from 15 March 2001
- new international upgrade redemption's will be offered
- Qantas guarantees consumers will earn a minimum 1000 points in all classes on all eligible Qantas flights with a Qantas flight number.
Professor Fels said that these changes have streamlined the structure of the Qantas frequent flyer program. However the program continues to carry restrictions on the accrual and redemption of points.
"It is important that advertised rewards are available, and that the restrictions imposed on the redemption of those rewards are made clear to consumers. Qantas has taken positive steps to improve such disclosure", Professor Fels, said.
"The ACCC encourages all Qantas frequent flyer members to read the new terms and conditions brochure that will apply to the program from the 15 September 2001. This brochure is being mailed to members and can be accessed at www.qantasfrequentflyer.com.au. Consumers who would like further information about the program changes can also telephone Qantas on 13 10 64".
Professor Fels said the ACCC is expecting many consumers will benefit from these changes, as well as further industry wide reforms to the conduct of frequent flyer schemes.
"Complaints made to the ACCC indicate consumers are concerned that the promotion of frequent flyer programs focuses on the trips, gifts or special deals a member can obtain, with little mention of the restrictions imposed by the terms and conditions of these schemes. The onus is on the airlines to clearly disclose the terms and conditions governing these programs, and to make consumers aware that maximising the commercial revenue of a flight means frequent flyer redemption seats will be limited in availability.
"The ACCC will shortly finalise a report examining the frequent flyer schemes offered by the domestic airlines".