Air India is undergoing a significant transformation, with changes being made to its loyalty program in order to catch up with its international competitors. The airline’s CEO, Campbell Wilson, compared the overhaul to launching a start-up, with improvements being made to areas such as new planes, IT software, and training. The Flying Returns loyalty scheme, which has not been updated since 2012, is now being revamped with six key changes for earning and redeeming reward points.
The changes to the loyalty program include a move towards value-based earnings, where points are awarded based on the fare paid rather than the distance traveled. Points will also no longer expire, as long as the member flies with Air India at least once every 24 months. A ‘Cash + Points’ format has been introduced for customers who do not have enough points for a free ticket, allowing them to part-pay with miles and top up with cash. Additionally, last seat availability has been addressed with a hybrid model that allows for dynamic pricing on all seats.
The new award chart for redemptions has been updated to offer better value for customers. Redemptions on busy domestic routes like Mumbai to Delhi now start at 5,000 points instead of 10,000 points. Even on international flights, prices have been reduced, making the program more competitive with other carriers. The ability to redeem Star Alliance partner awards online has also been implemented, making it easier for customers to use their points across a wider network of airlines.
The loyalty status tiers have also been simplified, with the top tier now known as Platinum instead of the Maharaja Club. The requirements to achieve status have been dropped by 40% across all tiers, with a new flight count metric being added to reward frequent travelers. Star Alliance membership is now valued in terms of achieving status, with only 30% of flights needing to be with Air India to qualify. Additional benefits have been added for Gold and Platinum members, including free ticket changes and seat selection.
The aim of these changes is to bring back customers to Air India’s loyalty platform, as many frequent fliers currently credit their flights to other Star Alliance carriers. The integration of Air India Express and Vistara into the program is still pending. While the program may not be the best loyalty program available, the changes being made help to make it more competitive and bridge the gap with other carriers. The hope is that these improvements will attract more customers and make Air India a more desirable choice for frequent fliers.
