I've just got an email from Airmiles about how the scheme is changing - for the worse, from what I can see. It says "we're ripping up the rulebook". Should I rip up my Airmiles?
No, or at least not yet. There are three big changes to the Airmiles scheme. The first is that the loyalty points are being scrapped in favour of a "reward currency" called Avios. Collectors will find that, from November 16, their holding is converted from Airmiles to Avios at a rate of 1:10. So if you have 750 Airmiles, they change to 7,500 Avios.
Next, the redemption rates for some popular destinations is changing. Two of the top three Airmiles cities, Amsterdam and Paris, currently "cost" 750 Airmiles. From November 16, the fare rises to 9,000 Avios - a 20 per cent increase in the amount you must save. The points required for New York fall by the same proportion - but the third change reveals a costly catch.
At present, Airmiles redemption is cash-free. But from November the scheme is adopting the industry practice of adding a range of extras you must pay in cash. They include anything from Air Passenger Duty (a tax) to fuel surcharges (which isn't).
That Heathrow-New York trip will now cost £300 in addition to the points.
Redeem your Airmiles by November 15 and you can buy at current rates for travel up to a year ahead. But a surge in demand caused by the change makes seats scarce on popular routes.
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