Air New Zealand rebrands loyalty program Koru in effort to take on Qantas Frequent Flyer

After nearly 30 years of delivering 'poor returns', Air New Zealand's loyalty scheme is getting a dramatic overhaul to challenge Qantas' frequent flyer dominance across the Tasman.

Air New Zealand is reinventing its universally unpopular loyalty program, starting with a name change and a “new era of recognition” in an effort to compete with Qantas Frequent Flyer.

From April next year, the little-known Airpoints scheme will become Koru, which is the Maori word for a newly unfurling frond from a silver fern.

The airline’s new chief executive officer Nikhil Ravishankar said Koru was one of the most significant evolutions of the loyalty program in nearly 30 years.

“Airpoints has been an important part of our story and now that story is evolving. Koru symbolises care, connection, and renewal,” said Mr Ravishankar who replaced the retiring Greg Foran last month.

“For our members, the name Koru inspires pride, belonging and a sense of place, especially when travelling far from home. Now it’s at the heart of loyalty at the airline.”

He said the new scheme would be a “more rewarding experience that felt simpler, more personal and unmistakably Kiwi”.

“Koru builds on everything our five million members love about loyalty, shaped and inspired by their feedback,” Mr Ravishankar said.

Central to the overhaul was a new tier known as “Koru Black”, similar to Qantas’ Platinum One, and achievable through 3200 status credits including 1920 in a year.

Mr Ravishankar said customers who reached Koru Black would gain access to some of Air New Zealand’s most exclusive benefits such as entry to Auckland International Airport’s new premier lounge when it opened, status points top ups and valet parking vouchers.

Air New Zealand is hoping to keep its highest paying customers loyal with a new “black” status tier.

“Reaching Koru Black often means flying further, travelling more often, and spending time away from home,” he said.

“Koru Black members have trusted us with their journeys time and time again and we want to recognise that loyalty with something truly special – the ability to share their travel experience.”

Central to the new tier was the “Koru Circle” which meant sharing the recognition of Koru Black with friends and family.

“Travel is most meaningful when it’s shared and Koru Circle helps our most frequent flyers extend some of their benefits to the people who matter most,” Mr Ravishankar said.

Executive Traveller editor David Flynn, said access to Auckland’s new flagship Koru Premier Lounge would be a drawcard for Koru blacks and platinums, but he wondered if it was something of a missed opportunity for the airline.

“There’s a general feeling among frequent flyers that Air New Zealand could have done much better with black benefits, especially with Qantas increasingly targeting Kiwi travellers,” said Mr Flynn.

“As it stands, the new black status tier barely holds its own against Qantas platinum. For many Kiwis who often travel between Australia and New Zealand, they may be better off drawing a line at Koru platinum and then shifting their spend to lock in the equivalent status with Qantas.”

Air New Zealand CEO Nikhil Ravishankar.

More details of the reimagined loyalty scheme would be shared in due course, and Mr Ravishankar said that included new partners and new and exclusive ways to fly with Air New Zealand.

The overhaul follows a damning assessment of Airpoints by the Australian Frequent Flyer site which this year ranked the program as delivering one of the poorest returns for members, at 1c a point or “little more than a fixed cash rebate”.

Other schemes including Qantas frequent flyer offered closer to 2c a point, with Virgin Atlantic’s Flying Club considered the best value scheme.

The changes come as Air New Zealand steps up its rivalry on trans-Tasman routes, announcing a new thrice weekly Brisbane-Queenstown service from June next year.

The seasonal route will operate until October and compete with Qantas and Virgin Australia which currently operate year-round flights between the two cities.

Mr Ravishankar recently told The Australian he recognised Air New Zealand was the underdog in the region but that kept them on their toes and thinking of ways to outsmart and out-compete their rivals.

Originally published as Air New Zealand rebrands loyalty program Koru in effort to take on Qantas Frequent Flyer