Qantas frequent flyers can now use their points on any flight they want, but it will come at a price.
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The airline announced yesterday it was adding two new ways for its five million frequent flyers to use points, in a move that experts have so far welcomed but suspicious users have questioned.
The Any Seat Awards are aimed at the frustrated frequent flyers who could not get the flights they wanted under the old scheme.
That scheme now known as Classic Awards will continue unchanged, but customers can now opt to pay a premium to choose their flights.
Qantas said there was ''no fixed relationship between the cash price charged ... and the points required'', however, it appeared more points were required for more popular flights and imminent departures.
Qantas frequent flyer chief executive Simon Hickey said there was also a new option of using points to lower the flight's bill through Points Plus Pay.
''Our research strongly indicates that many of our members want a guaranteed seat on the day they want to travel, and are happy to pay more for this,'' he said.
Centre for Asia-Pacific Aviation executive chairman Peter Harbison said that as well as allowing consumers to chose when they could fly, the changes would also benefit Qantas by getting more people on to planes.
Mr Harbison said, ''What this will do for them is to open up some avenues where [customers] can top-up, for example, with cash ... which is very good for the airline because it means additional revenue which they otherwise wouldn't have got and the removal of a whole set of contingent liabilities that sit on their balance sheet that they don't particularly like.'' Qantas said there would be no change to the availability of seats, or the points needed to attain them, under the Classic Scheme. It did not reveal how many flights were made available, but said points were used for more than three million seats last year.
Messages on the frequentflyer.com.au website last night were mixed, but largely critical of the changes, pointing out how some flights would cost far more under the new scheme.
One person labelled it a disgrace.
''All these loyal years you have had from me will terminate from the firm introduction of this plan. Oh dear Qantas, this is possibly the biggest blunder yet,'' the person said.
Another poster said no one ought to have expected bargains under the Any Seat scheme.
''I originally thought that possibly 23 times more than normal FF [frequent-flyer] points were required but by looking at some examples the number of FF points required really is a joke,'' the person said.
Qantas is also expanding its online store, where points can be used to buy products and gift vouchers.
Chief executive Geoff Dixon confirmed the long-standing rumours the Qantas board was considering selling part of the program and would make a decision at its August meeting.
''The improvements to the program over the past 12 months have reinforced our view of the value of the Qantas frequent flyer program as a stand-alone business,'' Mr Dixon said.
Should the board approve a partial sale, UBS, Citi and Macquarie have been appointed as joint lead managers.
Market speculation had suggested Qantas could raise about $1billion by selling 40per cent of the scheme, but Mr Dixon said the sale could earn between $2billion and $3.5billion.
He confirmed Qantas would not sell more than 40per cent of its stake.
Mr Harbison said a partial sale would have little impact on consumers because Qantas would maintain control of the scheme.
Qantas shares surged on the news, closing 20c, or 6.58per cent, higher at $3.24 last night.
