Jetstar adds Qantas Frequent Flyer points, cheap flexible fares

One of the surprising changes in Qantas' major revamp of its Frequent Flyer program today was the introduction of Qantas Frequent Flyer point and status credit earning with Jetstar.

It's still not included with the basic, cheap fares, but the cost of adding the option is not outlandish. It's not a flat fee -- it varies depending on the route you're travelling.

For example, on a $59 Sydney to Melbourne flight departing May 24th, the cost of adding Qantas Frequent Flyer point and status earning is $25. Baggage with a 20KG allowance adds another $10.

That $25 fee for the Sydney-Melbourne route might sound like a lot for the sake of 1,000 points, worth about $10, but it also includes flexiblity on the fare -- there are no change penalty fees (you still have to pay the difference if the flight you want to change to costs more than the originally ticketed flight, though.)

You also get free seat selection included, which Jetstar normally charges $3 for.

The $25 addition also gives you 10 status credits, which will help you crawl towards the next level in Qantas Frequent Flyer.

There's no question that Jetstar is covering its costs through your $25 fee, but the deal still seems pretty fair to passengers, compared to the traditionally crazy-expensive pricing of flexible fares on Australian airlines.

The really stark comparison is between Jetstar with the $25 bundle, and Qantas and Virgin Australia semi-flexible fares.

How Jetstar now compares to Qantas

The cheapest Qantas fare available on that day (May 24th) is $117 -- and that only qualifies you to earn Frequent Flyer points and status credits. There are still $50 per person, per segment change penalties.

A Qantas "flexi-saver" fare, which allows changes without penalty fees, but still requires any fare difference to be paid, costs a minimum $369.

No wonder most companies insist on booking non-refundable discount economy tickets on Qantas -- even when a change is necessary, the penalty fees are still cheaper than buying a flexible fare.

So, the Qantas/Jetstar comparison of fares SYD-MEL is:

• Qantas: Points + baggage - not flexible = $117
• Qantas: Points + baggage + flexible = $369
• Jetstar: Points + baggage + flexible = $94

How Jetstar now compares to Virgin Australia

The cheapest Virgin Australia fare available on that day (May 24th) is $88, plus $12 for 23KG of baggage -- a total of $100. That automatically includes points earning in Virgin Australia's Velocity frequent flyer program.

Virgin's flexible fare, which includes baggage, and allows changes without penalties, but still requires any fare difference to be paid, is $308.

So, the Virgin Australia/Jetstar comparison of fares SYD-MEL is:

• Virgin: Points + baggage - not flexible: $100
• Virgin: Points + baggage + flexible = $308
• Jetstar: Points + baggage + flexible = $94

The conclusion?

Although Jetstar doesn't market itself as a business airline, these changes clearly make it dramatically more appealing to business passengers, who will be able to use the Qantas Club before Jetstar flights, while also earning points and status credits towards Qantas Frequent Flyer membership tiers.

Jetstar's planes and seating are similar to Qantas' domestic planes -- often newer, in fact -- and cabin crew are generally as friendly and helpful as Qantas'.

The main downside of flying Jetstar is that sometimes it's in a different terminal to Qantas, with a smaller Qantas Club, and more crowded terminal spaces due to other budget airlines squeezing more passengers into a smaller space.

However, if a Jetstar fare with points and flexibility costs less than a Qantas fare with points but no flexibility, it should be an easy sell within organisations.

danwarne