Qantas revamps frequent flyer program with new VIP tier

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Qantas revamps frequent flyer program with new VIP tier

Qantas is creating a new Platinum One class in its Frequent Flyer program, above the current top-tier Platinum class.

Qantas is creating a new Platinum One class in its Frequent Flyer program, above the current top-tier Platinum class.

Qantas has unveiled a new super exclusive tier for its loyalty program to entice its most frequent flyers to keep riding the Flying Kangaroo.

It has announced a range of enhancements to its frequent flyer program, including adding telco Optus as a new partner and creating a new Platinum One status, above it current Platinum level.

Also, passengers on Qantas's low-cost subsidiary Jetstar will be able to earn Qantas frequent flyer points for a fee under a revised fare structure.

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Qantas chief executive Alan Joyce said the new level of VIP recognition was designed to entice those who fly a lot to keep their business with the airline, rather than divert travel to other carriers.

"They fly so much that once they get to Platinum we want then to keep on flying so they get to Platinum One," Mr Joyce told reporters in Sydney on Tuesday.

"There is a lot of money in that because, believe it or not, there's a lot of people out there that get to those levels."

Mr Joyce said he was unconcerned with Virgin Australia's plans to poach corporate travellers from Qantas.

"We don't have to cling on to the business market," he said.

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"The business market is very happy to stay with Qantas."

The new top tier will come into affect from the fourth quarter 2011, Qantas says.

Meanwhile, Qantas said frequent flyers would be able to earn points from Optus products and services such as home phone, mobile and broadband from later this year.

And in other changes, Qantas said points bonuses for premium cabins and for gold and silver members would be increased.

Optus managing director consumer division Mike Smith said the telco was looking to bring rewards to its customers.

"For us it is really about acquiring more new business and about holding on to customers," Mr Smith said.

Qantas frequent flyer chief executive Simon Hickey said the program currently had 7.8 million members and he expected to hit eight million by June 30 this year.

By comparison, Virgin Australia's Velocity Rewards has about 1.5 million members.

Mr Joyce said there were no plans to float the Qantas frequent flyer business.

Meanwhile, subsidiary Jetstar has launched a complete overhaul of its economy and business fare options in a bid to make its flights cheaper.

The airline has scrapped its five economy fare options, replacing them all with a single 'Starter' fare.

They have also renamed their 'StarClass' category to Business.

The basic Starter fare - superseding its JetSaver Light, JetSaver, JetFlex and JetPlus tickets - includes only a seat and 10 kilograms of carry-on baggage.

Travellers then have the option to customise their booking by purchasing one of two bundle options, Plus or Max.

"You can choose almost everything but the seat colour," Jetstar Group CEO Bruce Buchanan said in a statement on Tuesday.

"These new options give customers complete control over their travel experience with Jetstar starting with the lowest fares."

The Plus option allows travellers to accumulate Qantas Frequent Flyer points and Status credits (on eligible flights), as well as free standard seat selection and no change fees.

The Max option offers the same as Plus, but also includes extra leg-room seating and refundability.

Passengers will also be able to select specific baggage limits on individual legs across all fares.

The release of the new fare system coincides with the airline's launch of an updated website.

AAP

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