This is why I am ceasing all airline memberships with my credit cards. I've been looking at whether to pull the plug or not for quite a while now, but my mind is made up now.
I have an NAB and ANZ credit card with Velocity and Qantas respectively, but have finally worked out that with annual fees of the cards and membership, and the taxes you have to pay when you do use points on flights, you're not any better off.
You only have to look at the 'online shop' to see what you can buy with points (but mostly cash) and compare what you pay there to real world, un-inflated prices.
