Wirraway
7th Nov 2003, 01:20
Fri "The Australian"
Qantas attack on frequent flyer ploy
By Steve Creedy
November 07, 2003
Qantas is threatening to expel frequent flyers who use an online scheme to sell points in exchange for tax-deductible charity donations.
The carrier has told its lawyers to investigate the scheme and described claims by its promoters, the Atlas Travel Club, as "misleading".
A Qantas spokeswoman said the program's terms and conditions meant bookings could only be redeemed for the frequent flyer or eligible family members.
She also questioned the scheme's status with the Australian Tax Office.
"Awards may not be bought or sold for any form of consideration," she said.
"The breach of the terms and conditions may result in termination of membership and benefits."
The Atlas scheme urges members to redeem Qantas frequent flyer points for tickets on Oneworld alliance partners such as British Airways and American Airlines. The club says it then sells the ticket to overseas members at a small discount over regular prices.
"We then donate the money, less a small management fee, to a registered Australian charity in your name or any other name you nominate," it says. "You get the tax benefit, the charity gets a welcome donation and everybody's happy."
Atlas Travel Club claims to be a non-profit organisation with 3.2 million members in Australia and New Zealand.
Its website says it has branches in Australia, New Zealand, the US, Canada and the UK and that it uses the buying power of its membership to get travel bargains.
An Atlas spokesman who identified himself in an email as "MikeB" said a survey of club members with Qantas frequent flyer points found 62 per cent were dissatisfied with them and the ability to redeem them.
The spokesman said more than 107,000 members had signed up to the tax scheme and the club had so far only e-mailed 20 per cent of its membership.
"It would seem that not only is Qantas now going to predatory price itself with its new low-cost airline subsidiary ... but they are also going to self-destruct their frequent flyer program by terminating hundreds of thousands of memberships," he said.
The spokesman also questioned how Qantas would find out which frequent flyer members were using the scheme given the membership bases of Atlas Clubs were run offshore.
"There is no way they can get to them," he said.
A spokesman for the NSW Office of Fair Trading said the club was not currently under investigation.
The Australian Tax Office was unable to say whether participants in the scheme could face future tax problems.
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Qantas attack on frequent flyer ploy
By Steve Creedy
November 07, 2003
Qantas is threatening to expel frequent flyers who use an online scheme to sell points in exchange for tax-deductible charity donations.
The carrier has told its lawyers to investigate the scheme and described claims by its promoters, the Atlas Travel Club, as "misleading".
A Qantas spokeswoman said the program's terms and conditions meant bookings could only be redeemed for the frequent flyer or eligible family members.
She also questioned the scheme's status with the Australian Tax Office.
"Awards may not be bought or sold for any form of consideration," she said.
"The breach of the terms and conditions may result in termination of membership and benefits."
The Atlas scheme urges members to redeem Qantas frequent flyer points for tickets on Oneworld alliance partners such as British Airways and American Airlines. The club says it then sells the ticket to overseas members at a small discount over regular prices.
"We then donate the money, less a small management fee, to a registered Australian charity in your name or any other name you nominate," it says. "You get the tax benefit, the charity gets a welcome donation and everybody's happy."
Atlas Travel Club claims to be a non-profit organisation with 3.2 million members in Australia and New Zealand.
Its website says it has branches in Australia, New Zealand, the US, Canada and the UK and that it uses the buying power of its membership to get travel bargains.
An Atlas spokesman who identified himself in an email as "MikeB" said a survey of club members with Qantas frequent flyer points found 62 per cent were dissatisfied with them and the ability to redeem them.
The spokesman said more than 107,000 members had signed up to the tax scheme and the club had so far only e-mailed 20 per cent of its membership.
"It would seem that not only is Qantas now going to predatory price itself with its new low-cost airline subsidiary ... but they are also going to self-destruct their frequent flyer program by terminating hundreds of thousands of memberships," he said.
The spokesman also questioned how Qantas would find out which frequent flyer members were using the scheme given the membership bases of Atlas Clubs were run offshore.
"There is no way they can get to them," he said.
A spokesman for the NSW Office of Fair Trading said the club was not currently under investigation.
The Australian Tax Office was unable to say whether participants in the scheme could face future tax problems.
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