This program was reviewed and rated by our editors in February 2009. Changes in the program past this date are possible, especially program partner information. We recommend you subscribe to the #1 source of frequent flyer information, Inside Flyer Magazine, to get the most current information possible.

Flying Boats and Hobbits---Air New Zealand has its origins in the Tasman Empire Airways Limited, a company that began flying trans-Tasman routes between New Zealand and Australia with flying boats in 1940. The airline replaced its flying boats with propeller airliners by 1960 and began offering transpacific service to the United States and Asia in 1965 with the introduction of DC-8 aircraft.

Auckland-based Air New Zealand currently flies to over 40 domestic and international destinations, including Tokyo, Honolulu, London and Vancouver. The airline joined the Star Alliance in 1999 and established itself as "the official airline to Middle Earth" when it decorated three planes with images from The Lord of the Rings, which was filmed in New Zealand.

When we last reviewed Air New Zealand's frequent flyer program in 2004, Airpoints had just revamped its loyalty program to reflect a new emphasis on money spent, not miles flown. Airpoints Dollars were introduced as the loyalty program's currency and just like cash, if you have enough Dollars in your account and there is a seat available, you can redeem them on any open seat. Just six months after the program change, Air New Zealand won a Freddie Award for Best Award Redemption. Although not everyone is thrilled with the change to a value-based program from a distance-based program, few can argue that being able to redeem Dollars as easily as cash is disadvantageous.

Airpoints Dollars are awarded based on the fare class and distance flown. A domestic flight less than 300 km will earn eight Dollars in discount coach and 13 Dollars in full-fare coach classes. A flight between Auckland and North America will earn 80 Dollars in discount coach, 115 Dollars in full-fare coach, 165 Dollars in Premium coach and 300 Dollars in business. Smart Saver fares on domestic, Tasmin and Pacific Island routes booked in L, G, S, K and P booking classes are not eligible to earn Dollars, but will qualify to earn elite-qualifying Status Points, except when tickets are purchased with Airpoints Dollars.

Airpoints has partnerships with numerous credit card partners, hotels, rental cars, retail establishments and cruise lines with which members can earn Dollars.

Airpoints Dollars can be used like cash to pay for seats, which means any seat, on any flight, at any time, can be purchased with Dollars with no capacity controls or blackout dates. The number of Dollars required for an award flight fluctuates according to the fare cost of a flight. We found base fares ranging between NZ$136 and NZ$638 for a coach domestic roundtrip flight between Auckland and Wellington in the beginning of April. To go from Auckland to San Francisco, we found base fares starting at NZ$1,916.50 for coach and NZ$5,266.50 for business. Airpoints Dollars can be used to cover the cost of the base fare only; additional airport and government fees must be paid for with cash.

One-way awards are available on domestic Tasman or Pacific flights and you can redeem Dollars for one leg of a roundtrip and purchase the return flight with cash but Airpoints does not offer a Dollars and cash redemption option. Only roundtrip awards are available when redeeming Dollars for long-haul award travel.

Star Alliance upgrade awards are available on ANA, Asiana, Austrian, LOT Polish, Lufthansa, Singapore, SWISS, TAP Portugal and Thai. Star Alliance upgrades are confirmed at the time of the request, based on availability and booking class. Dollars can be redeemed for standby or confirmed upgrades on Air New Zealand flights.

Standby upgrades start at 220 Dollars for a one-way, one-class upgrade from coach to business class on flights within Eastern Australia and confirmed upgrades start at 300 Dollars.

Companion tickets can be booked at reduced rates and availability is limited. One-way companion awards start out at 145 Dollars from Auckland to Brisbane.

Budget car rental awards are available starting at 89 Dollars per day for rentals in New Zealand and 105 Dollars for Australian rentals.

Many hotels and resorts across New Zealand and Australia offer hotel awards for a twin or double room and rates vary according to hotel type and location. A partial list of participating hotels include Crowne Plaza Auckland, Millennium Hotel Christchurch and Parkroyal Queenstown.

Members can purchase or renew their Koru membership with Dollars and enjoy Air New Zealand's Koru and international airport lounges. A one-year Koru Club membership is available for 495 Dollars plus a one-time 250 Dollar joining fee.

Air New Zealand is a member of the Star Alliance network, offering Airpoints members flights to over 965 destinations in 162 countries--effectively creating earning and redemption opportunities in every corner of the globe. In addition, Air New Zealand is allied with Mexicana and Virgin Atlantic.

Air New Zealand partners with numerous credit cards in New Zealand and Australia with which members can convert credit card points into Dollars, although the airline does not offer a co-branded affinity card. Conversion rates vary by card. Airpoints also participates in Diners Club and 130 Diners Rewards points converts into one Dollar.

Hotel partners include Accor, Mercure, Novotel, Sofitel, Carlton, Hilton, InterContinental, Millenium & Copthorne and Starwood. In general, members can earn between 10 or 20 Dollars per stay or one Dollar for every NZ$15 or Air NZ$20 spent--exact earning rates vary by hotel.

Budget, Avis and Hertz are car rental partners offering 2.5 Dollars per rental day.

Book a holiday package with Air New Zealand Holidays that includes an Air New Zealand flight and accommodations and you'll earn 25 Dollars. Members also earn one Dollar per NZ$50 spent for purchasing international travel insurance with Air New Zealand.

DFS Galleria is the sole retail partner offering one Dollar for every NZ$50 spent in any DFS Galleria store in New Zealand.

Cruise Partners offer one Dollar per NZ$80 spent on select cruise lines, including Bora Bora Cruises, Norwegian Cruise Line and Oceania Cruises.

Airpoints offers three levels of elite status: Silver, Gold and Gold Elite. Status is based on the number of Status Points earned over a 12-month period. Earn 450 Status Points for Silver, 900 for Gold and 1,500 for Gold Elite (at least 900 of which have to be earned through travel on Air New Zealand ticketed and operated flights).

The number of Status Points required to requalify for elite membership is slightly lower at 405 for Silver, 810 for Gold and 1,350 for Gold Elite (at least 810 of which have to be earned through travel on Air New Zealand ticketed and operated flights).

Silver status offers an innovative electronic ePass members can attach to their mobile phone that works as a reusable boarding pass and identifies members at airport kiosks, boarding gates and Koru Lounges. Members also receive two one-time lounge passes for any of the Koru Lounges within New Zealand or any of the Air New Zealand-operated international lounges; one complimentary one-class upgrade, which may be confirmed 48 hours prior to travel on Air New Zealand; access to discounted long-haul business awards and priority waitlisting and standby. Airpoints Silver status members also receive Silver status within the Star Alliance.

Gold members get all the benefits of Silver, with a few modifications and additions. Lounge privileges include full access to Koru Club Lounges within New Zealand, and to all Air New Zealand international lounges, and entrance for one guest (subject to space) on the day of travel on Star Alliance-ticketed and operated flights. Gold members receive Gold status within the Star Alliance and access is available for a member and one traveling companion to Star Alliance Gold Lounges when departing on any Star Alliance carrier-operated flight.

Gold members also receive two complimentary, single sector, one-class upgrades for travel on Air New Zealand and one hotel/rental car voucher for either a complimentary room or car upgrade. Gold members are entitled to priority check-in, priority boarding, two carry-on items and priority baggage handling. On domestic flights, Gold members can bring additional baggage up to 25kg at no extra charge. Airpoints Dollars will not expire as long as you maintain Gold or higher elite status.

Gold members are allowed to gift awards to two nominated friends or family members, not just those who live with the member.

Gold Elite members claim additional benefits, including the opportunity to nominate a spouse or partner to receive the same benefits of Gold Elite status when traveling on Air New Zealand operated flights. Members also receive the option to gift awards to four nominated friends or family members each year. Access for five guests (subject to space) at Koru Club Lounges, and at all Air New Zealand-operated international lounges is offered and five complimentary Koru Club valet parking vouchers are available.

Gold Elite gifts are given to members when they reach 2,500 Status Points after their last requalification date. Gifts include items such as a case of wine, an extra year of Gold Elite status or dinner for two at an award-winning restaurant.

Airpoints requires a membership fee (such fees are not unheard of--Qantas Frequent Flyer, for example, charges a fee to its Australian members). The cost to join the program is NZ$50, and after joining, Airpoints members who have not flown on a paid Air New Zealand flight for 12 months will be charged an annual fee of NZ$30. If members choose to receive Airpoints statements online, the annual fee will be reduced to NZ$20.

Transferring and pooling Dollars between accounts is not allowed but you can gift awards to anyone who lives at the same address as you. Gold Elite and Gold members have the option to gift awards to people they have nominated.

Airpoints Dollars are valid between four and five years. Each year on the anniversary of the date you joined Airpoints, Dollars earned more than four years earlier will expire. The expiration policy is waived for Gold Elite and Gold members. Airpoints Dollars cannot be purchased.

"Excellent call center service worldwide", "high level of customer service" and "helpful phone staff" are just a few of the comments we've received from members. Air New Zealand and Airpoints consistently win praise for customer service and our own interactions with Airpoints personnel were positive and we received accurate information.

Airpoints launched a new Web site last year that allows members to personalize the myairnz.com homepage with widgets. Members can choose to save their favorite routes, add or delete features such as weather conditions, special deals and a world time clock. You can also rearrange the sections on the page to create a customized view.

Online features allow Airpoints members to check their Airpoints Dollars and status points and track account activity. Online award booking for hotel awards, car rental awards and Air New Zealand flight awards is offered, but companion awards and flights that include a segment on a partner airline require a call to the service center. Call center booking fees range from NZ$15 per one-way domestic flight award within New Zealand to NZ$100 per booking for Star Alliance and partner airline awards. Airpoints Dollars can be redeemed to cover the cost of call center fees.

No capacity controls, no blackout dates and same-day awards are an attractive offer for members concerned about award availability. Flight awards fluctuate with fares and if you plan in advance and travel when demand is low, you can spend fewer Dollars for your flight.

Air New Zealand is a member of the largest global airline alliance and members can earn and redeem Dollars across a large network of carriers. The program also has numerous non-airline partners and members can redeem Dollars for hotel stays, car rentals and Koru Club membership.

Although discounted fares qualify to earn status points, we are disappointed that certain discounted fares are not eligible to earn Airpoints Dollars, even at a reduced rate. Awards can only be transferred to members of your immediate household, so unless you are an elite member, you won't be able to gift an award to a friend or family member so they can fly over for a visit. In addition to the NZ$50 joining fee, unless you fly at least once a year on Air New Zealand, you'll have to pay up to a NZ$30 fee for membership in the program and call center booking fees are steep--members can end up paying NZ$100 to book an award flight over the phone. And although the expiration of Airpoints Dollars is more generous than some programs at 4-5 years, this is negated by having to pay for your membership.

Program Information:
In New Zealand:
Air New Zealand Airpoints Service Centre
Po Box 3923
Sydney NSW

Tel: 0800 Airpoints (0800 247 764)
Fax: 0800 830 737
Hours: 8am - 8pm (NZ time),
Monday to Sunday

In the U.S.:
Phone: (800) 262-1234
Fax: (310) 414-9189