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26 Qantas Annual Report 2008
Portfolio Businesses
5m5m
The Qantas Frequent Flyer program
is Australia’s leading loyalty program
with more than five million members
and 350-plus program partners.
Frequent Flyer
The Qantas Frequent Flyer Program is Australia’s
leading loyalty program, with more than five
million members and 350-plus program partners.
During the year, Qantas Frequent Flyer underwent significant
restructuring to become a stand-alone segment of
the Qantas Group, paving the way for a new ownership structure.
Qantas Frequent Flyer has a dedicated management team and
in-house sales, marketing, operations, and administration functions.
A range of enhancements to the program was launched on 1 July
2008, establishing it as a world leader among loyalty programs in
terms of the value it offers members and the breadth of product
choices available.
Qantas Frequent Flyer now offers three different options
for obtaining award seats:
• Qantas and Jetstar Any Seat Awards, which allows members
to use points for any seat, including taxes and charges, on any flight
with a QF or JQ flight number;
• Points Plus Pay, which allows members to use a combination of
points and a credit/charge card payment for Qantas and Jetstar
Any Seat Awards and in the Qantas Frequent Flyer online store;
and
• Qantas and Partner Classic Awards, the traditional option
of using a set number of points for a limited number of seats
on Qantas, Jetstar and partner airlines, with no change to the
availability or points required.
Major enhancements have been made to the online Qantas Frequent
Flyer store, which now offers over 700 products and vouchers for
which members can use their points. The Points Plus Pay option is
also available for most products.
Members can earn points with more than 350 program partners
worldwide, including airlines, car rentals, hotels, financial institutions
and retailers. By combining points earned from many partners
into a single Frequent Flyer account, members can earn awards
more quickly.
The enhancements make Qantas Frequent Flyer a more powerful
loyalty program, as well as a strong business in its own right.
Qantas has been exploring a minority Australian initial public
offering (IPO) of the Qantas Frequent Flyer business. The IPO of
Qantas Frequent Flyer will be value accretive to Qantas shareholders
and the business has been appropriately structured in preparation.
To ensure an IPO generates appropriate value for shareholders,
regard has been given to the condition of equity markets. In this
period of heightened volatility, it was deemed appropriate to defer the
IPO. Preparations continue for a minority IPO in the first half of 2009.
Qantas Holidays
Qantas Holidays is Australia’s leading travel
wholesaler, with over 42 destinations covering
Australia, Asia, Africa, Europe, the Pacific and
North and South America.
Qantas Holidays is the only major Australian travel wholesaler
that offers Qantas Frequent Flyer points on the purchase of
its holiday packages.
As well as working with Qantas Group airlines, Qantas Holidays
markets value-based travel packages for other airlines under the
Viva! Holidays brand in Asia, Europe and Hawaii.
Qantas Holidays continues to be a market leader in special holiday
packages for cultural and sporting events, with an extensive product
portfolio that includes the Australian Open Tennis Championships,
the Formula 1 Australian Grand Prix and stage shows such as Phantom
of the Opera.
Business Developments
Qantas Holidays, together with Qantas Business Travel, joined with
Jetset Travelworld to create one group in July 2008.
Under the arrangement, Jetset, which acquired Qantas Holidays
and Qantas Business Travel, is now 58 per cent owned by the
Qantas Group. Jetset is listed on the Australian Securities Exchange
(ASX) and the various businesses continue to operate under
their existing brand names.
The new Jetset Travelworld Ltd, a Qantas Group company, is well
equipped to withstand consolidation in the market and capitalise
on future growth opportunities.
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