Frequent flier programmes (FFPs) are the latest issue to come under scrutiny as Australia's carriers find themselves at the centre of yet another aviation dispute. Air safety and airport fees have already become embroiled in political rows.
The Australian Competition and Consumer Commission (ACCC) is investigating the way Qantas Airways and Ansett Australia run their loyalty programmes. The inquiry focuses on available seats when travellers try to redeem points, and whether the airlines fairly disclose their restrictions on these seats. ACCC chairman, Professor Allan Fels, says more consumers complain about this than any other airline practice.
The two carriers seem mystified by the launch of the inquiry, over which neither was contacted. Both say passengers generally find seats when they want them. Ansett claims over half the seats available for frequent fliers go unused. Mark Emerson, Qantas marketing manager, says that "about 90%" of frequent fliers get one of their first three choices.
The FFP controversy follows a series of attacks on Australia's two big carriers. They began with media scares over a perceived deterioration in the country's pristine air safety record, always a matter of national pride. The outcry was triggered by a couple of minor incidents suffered by Qantas late last year. In September, one of its Boeing 747-400s overran a runway at Bangkok, suffering slight damage to its main gear. This followed a 747 engine pod scrape at Perth. However, the issue has quickly developed into front page news. Some newspapers claim that Qantas is preoccupied with its bottom line and that this has compromised safety.
Qantas, for its part, blames media sensationalism for much of the negative public reaction and privately points to political motives at play as the carrier goes through a cost cutting review. Chief executive James Strong has been fierce in defence of an excellent safety record, which he says still remains intact.
At first Australia's beleaguered government defended the carrier, but has since launched an audit of several aspects of the Qantas safety programme. At the same time concerns have been voiced about the carrier's maintenance. "We haven't concluded there are safety problems but it would be prudent in the circumstances to have a look," says an official at Australia's Civil Aviation Safety Authority (CASA). A Senate committee has also asked Qantas, Ansett and transport department officials to explain recent safety incidents.
Finally, the ACCC is in the midst of another dispute over Sydney's proposal to boost airport fees by 130%. The ACCC, which must approve these increases, has retained consultants who have released four reports analysing the fee proposal. Sydney Airport claims higher fees are needed to cover airport upgrades, but it has delayed a final proposal until it can study the consultant reports. The local airline association has already filed a lawsuit contesting the hike in charges, alleging that it is designed to prepare the airport for privatisation.
Source: Airline Business
