Airline's Frequent Flyer programs have run up against a wall. For the last few years, they have been issuing more miles or Frequent Flyer points than they have the capacity to service. Craig Landry of Canada's Aeroplan (the Canadian equivalent of Fly Buys) called it the Redemption Dillema at last year's Frequent Flyer Program in Istanbul (at which Carlson were presenting as well). The figure below shows airlines points sitting in the accounts of travellers around the world (grey line) against the current numbers of seats and flights globally (orange line). And airlines purposefully resrtict the number of seats on each flight that their Frequent Flyer customers can use their points on.
With this as the industry backdrop - Air New Zealand have become the global innovator. They've opened up the whole of the plane on every flight to their Frequent Flyers in theAirpoints Dollars program. That hasn't protected them from the global downturn though and their profit dropped 80% in the first half of 2009.
With this as the industry backdrop - Air New Zealand have become the global innovator. They've opened up the whole of the plane on every flight to their Frequent Flyers in theAirpoints Dollars program. That hasn't protected them from the global downturn though and their profit dropped 80% in the first half of 2009.That can't be a recipe for success.
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