Air New Zealand Renegotiating Air Point Contracts

Air New Zealand has renegotiated its Air Points contract with the Bank of New Zealand.

As a result of this, and by mutual agreement, it has increased the amount it is charging the Bank of New Zealand for the Air Points its customers accrue in its respective loyalty programme. Air New Zealand is currently in similar negotiations with other partners, such as Diners Club NZ Ltd.

"This move is part of our overall recovery programme to restore the national airline to sound financial health. The changes have been driven by the need for Air New Zealand to recover the true cost of the programme and to ensure the relationship is on a commercial footing," says Andrew Miller, Senior Vice President Strategy and Planning.

"As in any relationship of this nature, it is up to the partners to decide whether they wish to pass on the increased costs to their customers," says Mr Miller.

He says increases in the amount Air New Zealand charges third parties for Air Points are not new. "We have negotiated similar increases with other parties, such as rental car agencies and hotels, when their contracts came up for renewal earlier in the year. The cost of the Air Points programme has increased in the past few years, therefore the new contracts reflect that."

Bank of New Zealand's GlobalPlus cardholders and home loan customers have been able to accrue Air Points since 1998. Diners Club cardholders have been able to accrue Air Points since 1996.