Qantas clips frequent flyer's wings

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Qantas frequent flyer points will expire in half the time after the airline tightened up its lucrative rewards scheme.

From July 1 next year, the scheme's six million members will have to use their points more regularly or lose them within 18 months, down from the current shelf life of three years.

A Qantas spokeswoman characterised the changes to its loyalty program as an improvement, saying they had been designed to encourage more account activity from members.

"We've developed the program quite significantly over the past 18 months ... basically it's keeping our members active," the spokeswoman said.

Frequent flyers will have to make a transaction, by either using or earning points, every 18 months to hold onto their accrued points.

A transaction can be an activity such as booking or redeeming a flight, exchanging points at the Qantas shop or by accessing any of the airline's 400 commercial partners, such as car hire, hotels, restaurants or supermarkets.

The minimum activity of one transaction in 18 months could be spending $31 at Woolworths, one of the program partners.

Points accrued before July 1 next year will have still have a three-year shelf life and are unaffected by the changes.

Status points - the tally that determines whether you are a bronze, silver gold or platinum flyer - are not affected.

Members won't be confused by the changes, the spokeswoman said.

Members' activity statements would delineate which points had a three-year life span and which had 18 months before they expired, she said.

"Up until the end of June next year, those points, those transactions, which have a date on their statement will still have a three-year shelf life. Anything post-July 1, 2010, will have an 18-month shelf life," the spokeswoman said.

The Qantas spokeswoman rejected suggestions the changes were designed to reduce the size of Qantas's points redemptions liability.

"We want to ensure both our members and our partners get the most of the program," she said.

- © Fairfax NZ News