It wasn’t just a big night for news from Indonesia and Nepal, here in Australia, Qantas revealed the end of its relationship with Optus and upped the stakes for its alliance with China Eastern.
From 30 June, Qantas Frequent Flyer members will no longer be able to accrue points on phone and Internet bills after the airline pulled the plug on its agreement with Optus.
The program between the two has been running for over three years, and allowed customers to earn points on any bills paid with the communication provider.
Optus, MD of Marketing and Product, Vicki Brady said the relationship was successful, but with the evolution of the company’s loyalty program it has decided to change ‘some aspects of their current offering’.
“We know that our customers value different things, so we’re working on the best way to bring our rewards to life in a way that makes sense for them. We thank our customers for their loyalty and will continue the Optus Movie Rewards program.”
Vicki Brady. Optus MD of Marketing and Product
Meanwhile, Qantas’ CEO Alan Joyce has warned that the competition regulator’s decision to bid against its China Eastern agreement could be a detriment against Australian tourism and traide.
In November last year, the two airlines announced a new joint venture that would include new flights between Australia and China.
Hoping to commence mid-2015, the five-year agreement proposed new routes from new cities such as Brisbane and Perth to Shanghai.
Qantas CEO says without the alliance Qantas may not be able to sustain flights to Shanghai.
Additionally, the agreement seeked joint operations in Terminal 1 at Shanghai International Airport.
However, in March the Australian Competition and Consumer Commission (ACCC) said the alliance would likely limit capacity and increase airfares between Australia and China. Read on
The airline’s chief disagreed and told the Australian that without the agreement its operations could be unsustainable.
He argued that the airline was not returning its cost of capital between Sydney and Shanghai due to pricing competition from other Chinese carriers as well as increased services from other Asian destinations such as Singapore, Hong Kong and Kuala Lumpur.
“The whole intention of this partnership is to grow, that’s what we’re aiming to do. What we believe will happen is that we can be more effective competition to the other hubs by working with China Eastern.”
Alan Joyce, Qantas CEO
