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Air NZ has just announced it's Starfish card. I guess its a step in the right direction but they I don't think they listened to the strong feedback I've heard to set a price and not just a discount.
Also the cheap flights are much less business friendly than they used to be. So even a 30% discount to a massive fare doesn't do it for me. It's still a punitive fare.
I'm the target market for this product and I'm not keen at all. It seems that Air New Zealand is getting the best of both worlds. Cash up front, but a price they can set at anytime in the future. Doesn't seem like a win win to me.
AirNZ is protesting strongly about Auckland Airport buying Queenstown Airport because Airport companies crank up all prices and making flying more expensive. Well this is the next step in the chain. Expensive flights slow economic development and increase the friction of doing business out of region.
The number one thing for getting people out of region to relocate here is price certainty of flights.
Starfish does't deliver that. Anyhoo, here is the full release. What do you think?
Massive 30% discount for frequent regional flyers
Air New Zealand has further boosted its commitment to regional New Zealand, by offering the opportunity for frequent flyers to slash the cost of their travel.
The airline’s new Starfish Card will see customers receive an automatic 15% or 30% discount on all regional airfare types, including the ridiculously low grabaseat fares.
The new Starfish card, which is valid for one year from date of purchase, will initially be on sale for a two month trial period.
“Our frequent regional flyers have told us they’d like the option of getting even more value for money in recognition of their travel needs,” says Air New Zealand Group General Manager Australasia Bruce Parton.
“I’ve visited customers in twenty towns and cities over the past couple of months listening to this feedback and as a result at the end of next month we will launch the new Starfish card giving big discounts.”
This is one of several regional customer initiatives that the airline will be rolling out over the coming year.
“The Starfish card will appeal to the tens of thousands of customers who travel frequently to and from regional New Zealand. Small to medium businesses will find this card particularly attractive as they start to recover from the effects of the global recession,” says Mr Parton.
“We expect to see stimulation in demand as customers maximise the opportunity to travel at lower costs than ever before.”
Frequent flyers can purchase from two discount options, costing $200 for a 15% discount or $800 for a 30% discount, which applies across all regional airfares including grabaseat, Smart Saver and Flexi Plus fares.
The product will be available for purchase exclusively online through www.myairnz.co.nz from the end of August, with all flight bookings made by logging onto your account via www.airnewzealand.co.nz or www.myairnz.co.nz automatically receiving the discount for one year.
The Starfish card applies to Air New Zealand regional flights, which are defined as originating from or departing to the regional airports:
Blenheim
Gisborne
Hamilton
Hokitika
Invercargill
Kaitaia
Kerikeri
Masterton
Napier
Nelson
New PlymouthPalmerston North
Rotorua
Taupo
Tauranga
TimaruWanaka
Wanganui
Whakatane
Whangarei
WestportServices between the main city ports of Auckland, Wellington, Dunedin, Christchurch and Queenstown are not included.
“The 15% discount card will provide value for money for those regional customers who currently spend more than $1,400 per year with us, or for those who spend more than $4,000 per year the 30% discount card will be ideal,” says Mr Parton.
Anyone can purchase the card and non-Airpoints members will automatically be provided with an Airpoints membership with the joining fee waived.
Customers will continue to earn Airpoints and Status Points in the same way they do today, based on the fare purchased, and Airpoints can be used to purchase flights.
Ironically I'm writing this from the Koru Lounge in Wellington on the way to Oz and was greeted personally by the fantastic Caroline with an upgrade as they have a full flight. I love Air New Zealand!
19:15, 26.07.2010
Doesn’t excite me. The issue for me is that more often than not I don’t have the luxury of planning my flights too far out, so am always subject to premium rates. At peak times a 30% discount is unlikely to compensate the premium I pay if I were able to book 8 – 12 weeks out. The only lever I have to moderate the bill is fly off-peak which isn’t always convenient. I want to be responsive to clients, be able to fly more often, and have more certainty around pricing I’m happy to committ to a ‘bus card’type concept i.e. buy a ten trip for x, twenty trip for y, a fifty trip for z and so forth. AirNZ gets my money upfront and a flyer with a far greater propensity to fly, I have price certainty irrespective of when I fly (depending on availability).
Come on AirNZ, run a trial with HB for 12 months – I’m convinced it will be revenue positive.
08:10, 27.07.2010
Thanks for the info Rod……as always Air New Zealand like to make things complicated… not getting me excited because like everyone else we don’t have the luxury of booking all flights way in advance. I would just like the X, Y, Z model – simple.
09:48, 27.07.2010
Ah the Harvey Normans of the sky. Offer the peasants a 30% discount and they’ll come running because they think it’s a great deal. Doesn’t matter what the list price is aye….we’ll just slowly bump up the list price and hey, we’ve just absorbed the discount and some. Interestingly starfish suck well to rocks and are hard to prise off…
Hamish mate your dead on…Airnz give us some price certainty! (I’m pretty sure the price of a flat panel TV doesn’t change on a week to week basis).
14:05, 27.07.2010
God, don’t you just hate them. Now they find a way of locking out any sensible competition for regular flyers – and trust me, only vigorous competition will make the fares, well, fair.
30% off – what? A huge rip off fare that is still close to gouging. AND they want us to pay up front for the privilege.
I say regular travellers should get certainty of air fares and loyalty discounts anyway. We shouldn’t have to face a massive bill up front. Airpoints? Don’t make me laugh – unless you pay a massively inflated price in the first place, you don’t get any.
Bruce Parton listening? News to me. I even dropped him a line (like he asked in ‘his’ Air NZ email 16th June). Hasn’t even bothered to reply. Not even a ‘thanks for the feedback’.
Why oh why oh why oh why oh why oh why oh why oh why oh why do the media keep sucking up to this bunch of robbers?
18:09, 27.07.2010
So when exactly was Pacific Blue planning on their Napier route?????
I think I know who I will fly with as soon as they do.
11:11, 28.07.2010
Probaby the best course of action is to boycott the new regime for the two month trial and let them know it is not what we want!
14:47, 16.08.2010
And the news of cheaper just got worse with Pacific Blue deciding to pull out of domestic flights. Pacific Blue was marked as one of the saviours for us in the Bay but that’s now not going to happen!
14:54, 17.08.2010
It’s a somewhat good idea, but paying $200 for a discount thats hardly even worth it? Its all a bit disgusting concidering if i fly with jetstar and book flights 2 weeks ahead it is still at least half of what AirNZ would charge for a similar time.
09:33, 30.08.2010
Come on Air NZ this is a joke… This isn’t tempting me one bit. I’m a frequent traveller from Nelson & Wellington spending approx $2,000/year and unless you can come up with a better incentive then I will be better off going with Sounds Air!
21:20, 02.02.2011
hey rod. enjoy your posts, use xero, and I congratulate you on your entrepreneurial success. the article/quote above overestimate the breakeven. the $200 product breaks even once you spend $1333 and the $800 product breaks even once you spend $2666. To check it just enter the equation 0.85 x y = y – 800 into a quadratic equation calculator on the web. I’m going to buy the $800 product. Go well Rod.