Air NZ, Telecom loyalty takes hit

Photo / Janna Dixon

Consumers already under stress from rising prices are about to face another double whammy from two of our biggest companies - Telecom and Air New Zealand.

From June, Air NZ will be rewarding loyalty a little less, slashing the number of airpoints customers earn - a move the airline blames on "rising operational costs" - while Telecom will hike landline rental and the price of national calls.

Air NZ says part of the reason it is having to alter its airpoints system is because of soaring numbers cashing in free flights.

A discount economy fare from Auckland to Los Angeles previously earned 110 airpoints but this will be cut to 45 on all flights leaving after June 1.

Similarly, points earned on a basic flight to Perth will drop from 50 to a mere 20.

Flights to the east coast of Australia will continue to reap 30 to 85 airpoints, depending on the type of ticket bought.

And business class travellers on London flights will be slightly better off, earning 375 airpoints - five more than before.

Each airpoint is worth a New Zealand dollar and can be used to buy airfares with the airline and its partners.

Comparatively, frequent flyer members on rival airline Qantas now reap better rewards for long-haul trips - a return economy flight between Auckland and London would earn a free one-way flight to Sydney - but fewer transtasman points.

Air New Zealand's head of loyalty Simon Pomeroy said the changes reflected Air New Zealand's rising operational costs and a 20 per cent increase in free flights being redeemed this year.

Nearly one million people are airpoints members.

At Telecom, it's also the most loyal people who will be affected by upcoming price rises.

Grandfather plans - those that exist for the most loyal customers but can no longer be purchased - and the Homeline plan will rise by an average of $1.70 a month nationwide from June, according to advertisements this week.

Telecom spokeswoman Anna Skerten said one-third of their landline customers would be affected.

"Although we've held off increases for the majority of our plans, some of our older plans that are no longer being offered are being adjusted in terms of the value they offer to ensure pricing consistency across all our products," Skerten said.

Wiring maintenance was also rising by 9c and national calls would become a flat rate of 31c a minute, instead of 46c on weekdays and 25c on weeknights and weekends.