Qantas Frequent Flyer Sell Off- It seems that Qantas is
again looking at selling off at least part of its Qantas Frequent Flyer
program. In addition to looking at the part sell off of their Frequent Flyer
program the Qantas Board is today also looking making more changes to their
program, including allowing Frequent Flyers to use points to purchase any seat
on any flight for a premium.
The Qantas’s frequent flyer program is its most profitable
side business, generating more than 60% of its external revenue, and has a
value of at least $2 Billion according to JP Morgan.
If this planned sell off and program change does in fact go
ahead I see a mixed bag, for frequent flyers, This is great news for those with
millions of frequent flyer points, the hard core frequent flyer who never is
able to their points when they want to or need to, they will finally be able to
use their points like hard currency. But the value of their points will degrade,
that being said to be able to use your points when you want to purchase any seat
on any flight is real value, what’s the point of having millions of points if
you cannot use them.
For those that don’t fly often, the sell off is also a mixed
bag, hopefully Qantas will set aside the same number of seat allocations for
Frequent Flyers as they currently do, who knows they may set aside more if
their frequent flyer program has more value.
In reality the ability for frequent flyers with millions of
points, “purchase with points” any seat, should not put much additional pressure
on seat availability because if this type flyer wants to fly they would get
seat anyway with hard cash or points. So a similar number of seats should be
released leading up to the flight.