CEO Blog

Written by Ravindra Bhagwanani on . Posted in Archives

PS

On January 01, the Panorama Club of Ukraine International Airlines will change to a revenue basis, with a standard accrual rate of 5 miles per USD spent. A second elite level will be introduced and higher earn rates of 7 and 10 miles per USD respectively are applied at these levels. Accrued miles can be used flexibly as full or partial payment with an easy conversion rate of 100 miles = 1 USD, but all tickets paid (partially) by miles are subject to an additional booking fee of 5 USD – the program does even not attempt to try to explain by what exactly this is justified. (Taxes can never be paid by miles.) The program claims that “everything is getting better!” (unless there was a translation mistake – in Ukrainian they say “Усе складається якнайкраще!”). With all respect to our Ukrainian friends: Today, you require about 10 paid roundtrip flights within Europe in Business Class to have sufficient miles for a Business Class award flight. As of January, you will need 20 of them. So, what exactly is getting better here…? Oh yes, and since it is always a bit tricky to incorporate partner airlines accruing on a mileage basis to a revenue-based program, the Panorama Club has found a fairly easy solution (which no other revenue-based FFP has ever implemented before!): As of January 01, all (!) existing airline partners (Air France, KLM, Austrian, TAP Air Portugal) will simply leave the program. So next time you hear about UIA being in trouble, it won’t be the fault of the Russians…