Accc Clears Frequent Flyer Program
The Age
Tuesday June 22, 2004
A four-year investigation into consumer complaints about Qantas's frequent flyer program by the nation's competition watchdog has failed to identify any breaches of the law.
The Australian Competition and Consumer Commission announced yesterday it had investigated hundreds of complaints from Qantas frequent flyer customers.
But it said it would take no action because the airline's frequent flyer scheme - the conditions of which were revised after the ACCC's investigation began - did not break any provisions of the Trade Practices Act.
In a statement, the ACCC said the investigation was launched following complaints by people who had been unable to redeem rewards points to book flights on a date and at a time of their choice, and who might not have been aware that seat availability under the program was limited.
``Qantas has indicated that it has addressed these concerns by reviewing and improving its disclosure about the availability of frequent flyer seats being limited," said ACCC chairman Graeme Samuel.
``Qantas has indicated its actions have been directed at making available more award seats for frequent flyers and improving transparency about the operation of the program."
Qantas, which said frequent flyer members redeemed at least 3 million rewards seats a year, welcomed the announcement.
In a statement, it said it had engaged in discussions with the regulator during the course of the investigation, which originally included complaints about the rewards program offered by the now-defunct Ansett.
``Qantas continues to enhance the program and has introduced an online search function increasing opportunities for frequent flyer members to readily determine award seat availability," the airline said.
The announcement from the ACCC comes as Commonwealth Bank prepares to alter the terms under which it offers its customers access to Qantas flights. Under the already announced changes, the value of points will be diminished.
As Commonwealth is a financial institution, its scheme comes under the watch of the Australian Securities and Investments Commission. Last year, National Australia Bank backed away from making similar changes.
A spokeswoman for ASIC said the companies watchdog had no concerns about Commonwealth's planned changes because customers had been given ample notice.
Qantas shares closed 1 lower at $3.42. Commonwealth shares were up 25 to $33.04.
© 2004 The Age
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