Latest news with #Airpoints
NZ Herald
02-08-2025
- Business
- NZ Herald
Air NZ defends Airpoints scheme after Australian criticism
'So, while we definitely do consider Airpoints to be less valuable than points in other frequent flyer programmes, it might not be easy for New Zealanders to actually earn significant points in those more valuable overseas programmes.' The study from Graham and his colleague Wilson McTaggart was picked up by national newspaper The Australian. But Air New Zealand said Graham and McTaggart's analysis did not outline numerous benefits and options available to customers based in New Zealand. 'Our loyalty programme is designed to deliver a rewarding and valuable experience for our members,' Air NZ general manager loyalty Alex Larsen said. 'We offer dozens of ways to earn and spend Airpoints dollars with competitive earn rates across banking, retail and directly with Air New Zealand. 'We also like to keep things simple and transparent for our members and that's why we take the guesswork out of how much an Airpoint dollar is worth. 'One Airpoints dollar is equivalent to one New Zealand dollar. 'You can spend your Airpoints dollars on all Air New Zealand flights, along with any item on our Airpoints store, or use a combination of Airpoints dollars and cash with FlexiPay, perfect for when you want to redeem your points but don't have enough to cover the full cost.' He said the airline had 4.8 million Airpoints members and was working on several innovations. Air New Zealand said its actual credit card reward points converted at a range between 70 to 1 and 150 to 1. 'For example, the ANZ Airpoints Visa Platinum card has an earn rate of $110 for one Airpoints dollar, Westpac's Airpoints Mastercard has an earn rate of $150 ... and the American Express Platinum card has an earn rate of $70 for one Airpoints dollar.' Graham said many frequent flyers considered Air New Zealand's Airpoints programme to be uncompetitive compared to international programmes. 'One of the main reasons for this is that it treats its points like cash, with one Airpoint being simply worth $1 when redeeming on Air New Zealand.' He said that limited opportunities to get the 'outsized value' from Airpoints that some other frequent flyer programmes had. Graham also said the hard expiry of Airpoints, which expired after four years even if one's account was active, was 'very consumer-unfriendly'. He said Australian Frequent Flyer regarded Airpoints as poor when it came to the points' expiration policy. 'It uses dynamic pricing for many of its redemptions, so the number of Airpoints you need to book a flight is not fixed,' Graham said. Etihad and Emirates also scored relatively poorly in his study because many flight redemptions he reviewed cost a high number of miles and had high surcharges, compared to other airline programmes. 'In my view, it seems Air New Zealand feels like it doesn't really need a competitive loyalty programme because many Kiwis are stuck with it and will continue to use it anyway.' But he also said many loyal Air New Zealand flyers undoubtedly valued Airpoints' elite status. 'And Air New Zealand does look after its most frequent flyers very well. But as a complete package, the Airpoints programme is just not that attractive.' A Consumer NZ study last month said for people putting at least $20,000 a year through their credit card, the best card to get free flights was American Express Airpoints. It said that card would get a person up to $400 towards flights over two years. For people spending $50,000, the best card in Consumer's opinion was Amex Airpoints Platinum. 'If you're able to spend this much on your credit card each year, you'll earn $1900 towards flights over two years,' Consumer NZ said. 'But it's by collecting points you can turn into trips rather than with Airpoints.' In May, Kiwibank said it was phasing out its Airpoints credit card rewards, citing increasing costs and regulation changes. Interchange fees paid on transactions, charged by issuers to a merchant's bank, were cut in 2022. The Commerce Commission introduced new pricing standards but Kiwibank said that meant some increased costs were passed on to cardholders and issuers covered a big portion. Those Kiwibank cardholders can earn Airpoints until October 31 and will then be moved to the Kiwibank Platinum Visa card automatically. Last November, data showed Air NZ's Airpoints had been growing at about 11% a year. The airline then said it introduced more perks, and partnerships such as Everyday Rewards. John Weekes is a business journalist mostly covering aviation and court. He has previously covered consumer affairs, crime, politics and court.
Scoop
27-07-2025
- Business
- Scoop
Air New Zealand Unveils Plans For New Flagship Koru Lounge At Auckland International Airport
Press Release – Air New Zealand · Plans revealed for new Air New Zealand Koru Lounge at Auckland International Airport, including exclusive space for Airpoints™ Elite and Business Premier customers · The overall space will be double the size of the current lounge, meaning more space and comfort for customers · New interiors designed to reflect and celebrate Aotearoa Air New Zealand is today revealing plans for its new flagship Air New Zealand Koru Lounge at Auckland International Airport. Set to become the most spacious lounge in the airline's network, the footprint of the overall space will nearly double, and will incorporate two lounges: a separate space for Airpoints Elite and Business Premier customers, and the second for Airpoints Gold, Star Alliance Gold, Airpoints Silver and Koru members. Air New Zealand CEO Greg Foran says the new lounges will deliver an experience designed to enhance customers' journeys and a fresh new look and feel inspired by the best of Aotearoa. 'We've designed our new lounges around what our customers told us matters most – more space, more seating, and the ability to choose how they spend their time. 'Across both lounges, total seating capacity will increase by 70 per cent, providing a significant boost in comfort and capacity for international travellers passing through Auckland.' Throughout the lounges, areas designed to cater to a diverse range of travellers will be introduced. 'We know our customers value having spaces that are suited to their travel needs, whether that be a quiet business area that allows focus, room for families to play before jumping onboard a flight or a social space to enjoy a coffee before departure,' Foran says. The new interiors will celebrate the beautiful sights and textures of Aotearoa, brought to life through colours, materials, furnishings, and carefully curated lighting and art. Construction is planned to begin in early 2026 and will take place in two phases. The current lounge will remain open with reduced capacity while work is completed on the new lounge for Airpoints Elite and Business Premier customers. Once the new lounge is open, the current lounge will be redeveloped and is expected to open by late 2027. Throughout construction, customers will continue to be accommodated across different lounge spaces. Details of these spaces will be shared ahead of time and on the day of travel through the Air NZ app. Notes: Air New Zealand's current lounge at Auckland International Airport is approximately 2,000sqm. The new footprint will be approximately 1,700sqm larger, at 3,700sqm in total, and will incorporate two lounges · Both lounges will feature fit-for-purpose spaces to suit travellers' needs, including: o Improved business areas – A variety of productive workspaces from private rooms and single-seating booths will offer quiet space to focus o Comfortable areas to relax – Comfortable lounge seating to offer a moment of calm before departure o Dedicated family area – A dedicated family area that's been thoughtfully designed to be more suited to those travelling with their whānau o A barista bar that will be closer to the entrance – We've repositioned the barista to be closer to the entrance, so those short on time can recharge faster · The new lounge for Elite and Business Premier customers will be an elevated experience with more space, an expanded food and beverage offering, and views across the tarmac and runway
Scoop
28-05-2025
- Business
- Scoop
MoneyHub Publishes Guide To Replace Kiwibank Airpoints Credit Cards As Partnership Ends
29 May 2025 – MoneyHub, a leading New Zealand financial comparison platform, has released a comprehensive guide to help Kiwibank Airpoints credit cardholders navigate the termination of the Kiwibank and Air New Zealand Airpoints partnership, effective 31 October 2025. The guide, titled " How to Replace Your Kiwibank Airpoints Credit Card: Best Options", outlines alternative Airpoints-earning credit cards, transition tips, and key considerations to ensure cardholders continue earning Airpoints Dollars and Status Points. In late May 2025, Kiwibank announced the end of its Airpoints credit card program due to rising costs and new interchange fee regulations, impacting holders of the Kiwibank Airpoints Platinum Visa and Airpoints Low Fee Visa. From 1 November 2025, these cards will transition to non-Airpoints-earning Platinum Visa or Zero Visa products. MoneyHub's guide addresses the implications of this change and provides actionable solutions for affected customers. Key Highlights from the Guide: Top Picks for Replacement Cards: AMEX Airpoints Platinum: Best overall, with a superior earn rate of 1 Airpoints Dollar per $70 spent, 300 bonus Airpoints Dollars, and perks like lounge access and travel insurance ($195 annual fee). AMEX Airpoints Card: Best no-fee option, earning 1 Airpoints Dollar per $100 spent with no annual cost. ANZ Airpoints Visa Platinum: Ideal Visa/Mastercard option for wider acceptance, earning 1 Airpoints Dollar per $110 spent ($150 annual fee). Alternative Earning Methods: For those opting not to switch cards, Airpoints can be earned through Air New Zealand flights, partner retailers like New World and Z Energy, or travel bookings. Christopher Walsh, MoneyHub Founder, commented: "The end of Kiwibank's Airpoints program is a blow for loyal cardholders, but our guide shows that better options exist. The AMEX Airpoints Platinum Card stands out for its unmatched earn rate and premium perks, making it a seamless and rewarding switch for most users'. MoneyHub's guide also addresses frequently asked questions, such as Airpoints expiry and the value of Kiwibank's replacement Platinum Visa, which offers travel insurance but no Airpoints rewards. The guide emphasises the importance of acting before the 31 October 2025 deadline to maintain Airpoints benefits.
NZ Herald
28-05-2025
- Business
- NZ Herald
Kiwibank ends Airpoints credit card rewards: State-owned bank says higher costs hit scheme
Kiwibank is ending its Airpoints credit card rewards, which it says is due to increasing costs and regulation changes. Kiwibank chief customer officer Mark Stephen said the state-owned bank's new Platinum Visa would make up for the loss of Airpoints. Cardholders will be able to earn Airpoints until October 31
RNZ News
27-05-2025
- Business
- RNZ News
Kiwibank and Airpoints part ways
Kiwibank said it would replace its Airpoints-earning card with one that has a lower interest rate. Photo: Kiwibank Kiwibank says a change to the regulation of interchange fees is behind its decision to stop offering a credit card that earns Airpoints. It said on Tuesday that it had decided to end its partnership with Airpoints. It would replace its Airpoints-earning card with one that has a lower interest rate, more interest-free days and travel insurance benefits. It said the regulatory and economic landscape had changed significantly over the past decade and increased costs and changes to interchange fee regulations had affected the value and viability of the Kiwibank Airpoints reward programme. When a transaction is made, the bank that processes it for the merchant pays a fee to the card provider, called an interchange fee. The Commerce Commission has promised more reductions to interchange fees, with a decision due by 31 July. In 2022, new rules for merchant fees were forecast to mean cuts to credit card reward programmes. At the time, ASB proposed and then backtracked on plans to significantly increase the amount people had to spend on their credit cards to earn rewards. Kiiwbank said it supported promoting competition and efficiency but lowering interchange fees could reduce the variety of payment options available to customers. Mark Stephen, Kiwibank's chief customer officer for retail, said Kiwibank wanted to prioritise investment that provided value to the greatest number of customers. "After a thorough review, we concluded that these products are no longer the most effective way to achieve this. "The alternative to closing the products would be to reduce the rate at which points are earned or to pass on increased costs through higher interest rates - options we believe are neither fair nor in customers' best interests, as it would mean that customers who do not repay their balance in full every month would further subsidise rewards for those who do." He said Kiwibank also offered a Zero Visa card with no annual fee and a 12.9 percent interest rate. Customers can continue to earn Airpoints until 31 October, at which point they will move to a Platinum Visa card automatically. Air New Zealand said the decision was made jointly between it and Kiwibank. Chief digital officer Nikhil Ravishankar said it regularly reviewed its partnerships to ensure it was delivering value to Airpoints members and partners. "We have three strong banking partners who all offer Airpoints credit cards for Airpoints members, and we know Airpoints members place great value on having the ability to earn Airpoints and other travel-related benefits on their everyday purchases. "In addition, we are always looking for opportunities to offer new benefits to our members, whether that be through new partners, like the recent introduction of HelloFresh, Sharesies, and Everyday Rewards, or exploring new ways to diversify our offering through different products." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
