Qantas forced to lift frequent-flyer game
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Qantas forced to lift frequent-flyer game
Tues "The Australian"
Qantas forced to lift frequent-flyer game
By Steve Creedy, Aviation writer
June 22, 2004
QANTAS boosted the number of frequent-flyer seats and was forced to improve its website to satisfy worries by the consumer watchdog that its customers were not adequately informed about restrictions on award redemptions.
The airline increased the number of frequent-flyer seats by almost a quarter in 2002-2003 and made it easier to check availability online after "wide-ranging" discussions with the Australian Competition and Consumer Commission.
An ACCC inquiry into the Qantas scheme ended yesterday, finding there was not enough evidence to show the airline had breached the Trade Practices Act by failing to inform consumers about a lack of frequent-flyer seats.
But ACCC chairman Graeme Samuel said there was a view in the commission that the airline "may have been sailing close to the wind".
The ACCC launched the inquiry after complaints from consumers that they were unable to redeem frequent-flyer points when they wanted.
It looked at whether there was adequate disclosure of terms and conditions relating to the restrictions placed on award seating availability.
"Our involvement under the Trade Practices Act relates to any potential on the part of business to mislead or deceive customers or consumers," Mr Samuel said. "And what we were concerned about was to have Qantas increase the transparency of its offering so the consumers actually knew what they were getting and what choice they had."
Mr Samuel said talks with Qantas had resulted in action by the airline to review and improve disclosure about the limited availability of frequent flyer seats. The most notable improvement was an internet site allowing consumers to identify flights where frequent flyer seats were available.
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Qantas forced to lift frequent-flyer game
By Steve Creedy, Aviation writer
June 22, 2004
QANTAS boosted the number of frequent-flyer seats and was forced to improve its website to satisfy worries by the consumer watchdog that its customers were not adequately informed about restrictions on award redemptions.
The airline increased the number of frequent-flyer seats by almost a quarter in 2002-2003 and made it easier to check availability online after "wide-ranging" discussions with the Australian Competition and Consumer Commission.
An ACCC inquiry into the Qantas scheme ended yesterday, finding there was not enough evidence to show the airline had breached the Trade Practices Act by failing to inform consumers about a lack of frequent-flyer seats.
But ACCC chairman Graeme Samuel said there was a view in the commission that the airline "may have been sailing close to the wind".
The ACCC launched the inquiry after complaints from consumers that they were unable to redeem frequent-flyer points when they wanted.
It looked at whether there was adequate disclosure of terms and conditions relating to the restrictions placed on award seating availability.
"Our involvement under the Trade Practices Act relates to any potential on the part of business to mislead or deceive customers or consumers," Mr Samuel said. "And what we were concerned about was to have Qantas increase the transparency of its offering so the consumers actually knew what they were getting and what choice they had."
Mr Samuel said talks with Qantas had resulted in action by the airline to review and improve disclosure about the limited availability of frequent flyer seats. The most notable improvement was an internet site allowing consumers to identify flights where frequent flyer seats were available.
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