Qantas to issue its own 'premium' Platinum credit card

By David Flynn, May 5 2017

Qantas has now launched its new Qantas Premium platinum Mastercard with a 60,000 Qantas Points sign-up bonus, an earn rate of up to 2 Qantas Points per dollar plus domestic and international Qantas lounge access – read our report for all the details.

PREVIOUS | Qantas will unleash its own premium credit card onto the Australian market next month, shaking up the current airline/bank partnership scene and likely catapulting the Red Roo's plastic to the top of the pile.

The Qantas-branded credit card will be aimed at premium travellers with the promise of a high earning rate for frequent flyer points, 'uncapped earning potential' and other 'exclusive travel benefits' such as special deals on Qantas airfares and lounge access.

The Platinum-grade Qantas MasterCard will be issued by Citi and launched by the end of June.

"Around 35 per cent of credit card spend in Australia earn Qantas Points, which shows strong interest in this type of reward but also plenty of room for growth," said Qantas Loyalty CEO Lesley Grant.

“This is a premium card aimed at people who love earning Qantas Points and who travel enough to want access to special deals on air fares and lounge access."

What to watch for

Qantas is keeping the key details of its credit card proposition under wraps until closer to the launch date, but here's what to look for once the Qantas credit card takes flight.

As a Platinum-grade card, expect an annual fee of $250 or even higher – although Qantas may well waive this fee for the first year as part of its launch promotion.

We'd look for Qantas to offer at least 1.5 Qantas Points per dollar on domestic spends, and higher on overseas spends (overseas transaction fees will also be one to watch).

However, the 'uncapped earning potential' could point to a tiered earning system where a high spend results in a drop in the points-per-dollar earning rate – so while your earning isn't capped, it's severely curtailed.

Expect to see a very compelling sign-up bonus – in excess of 100,000 Qantas Points isn't out of the question.

Other perks could include a limited number of digital lounge passes each year and/or a discount on Qantas Club membership, which the airline already offers through the ANZ Qantas Frequent Flyer Black card.

Crowded house (of cards)

Qantas currently lists over 50 partner credit cards offered through all major banks, along with retailers such as David Jones, tied into MasterCard, Visa, American Express and Diners Club.

The airline estimates that just over one-third of all credit card spending in Australia is on a co-branded Qantas credit card.

However, the new card will be issued only in Qantas' name – under a new brand which the airline has yet to reveal – and deliver more control as well as greater profit into the airline's hands.

Qantas will enjoy a direct pipeline to the 11.7 million members of its Qantas Frequent Flyer scheme in marketing the card.

Plastic fantastic

Qantas first edged its way into the own-branded card space in 2013 with the Qantas Cash debit card, which has its prepaid travel money feature baked into every Qantas Frequent Flyer card through a partnership with MasterCard and the Heritage Bank.

The Qantas Cash card now enjoys a 17% share of Australia's prepaid travel card market, with some 670,000 cards activated to date – representing less than 10% of the total number of cards issued to Qantas Frequent Flyer members.

These sideline plays will be an increasingly important driver of growth for Qantas Loyalty, which the airline expects to deliver as much as $600 million in pre-tax earnings by 2022, up from $346 million in the 2016 financial year.

David

David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.

henrus

henrus

Qantas - Qantas Frequent Flyer

23 Oct 2013

Total posts 714

We could possibly see something like US Airline cards which include lounge access. I could see an annual fee around $500-700 being fair but it would include a Qantas club membership (not just a couple of passes)

downdata

downdata

28 Dec 2016

Total posts 69

Then its not good value for people that fly in J often..

devilish

devilish

06 Jan 2015

Total posts 71

Do you think people really fly J for the sole use of the lounge?

Lounges are aimed at frequent flyers to enjoy a quick snack of often inedible food, a few beers and cheap $10-$15 bottles of wine.

Nick Sydney 2

Nick Sydney 2

Qantas - Qantas Frequent Flyer

22 Jul 2015

Total posts 223

My usual stops at LAX and Dubai have pretty good F and B

traveller90

traveller90

29 Jan 2012

Total posts 108

I believe what we all want from the new QF CC will be different from what the majority of customers will in fact receive. QF is there to make money - not friends. Lounge entry - minimal access maybe, higher point earn - will need to be on the cards, perks for premium FF also will need to be there. It needs to protect its QC membership revenue so that will not be on the table. Other perks - time will tell. Platinum and J pax will be their target on loyalties - the rest will be just for the points and prestige of having the card. The annual fee will be the decider I feel for most prospective customers. Don't worry QF have done their homework well.

Mal

Mal

14 Jun 2013

Total posts 360

I reckon that's a good call Henrus, maybe the entry-level card will have lounge passes but the next one up will include Qantas Club membership.

markpk

markpk

Qantas - Qantas Frequent Flyer

29 Nov 2013

Total posts 455

Not sure of the value of including QC membership - I would have thought many of the target audience would already be at Gold or higher with QFF - negating the value. 

The real value will be how they tie it into Qantas Business Rewards - maybe a Qantas CC could be the precursor to spin off loyalty into its own entity..?

Mal

Mal

14 Jun 2013

Total posts 360

No reason Qantas can't also offer its own QBR business card as well as a personal card. Makes perfect sense.

11sjw

11sjw

11 Mar 2012

Total posts 293

Having just slid down the FF totem pole from Platinum to Silver a card including QC membership would be most welcome!

Jazzop

Jazzop

02 Dec 2016

Total posts 84

I agree.  I'm not paying features in a card I already get.  Plus, if they do include some free passes then allow them to be transferrable.  Perhaps, Qantas will line this card up to the tiered status of it's FF program.  So silver pays x, Gold pays x - 10%, platinum x -15% and Platinum One x -20%.

Mal

Mal

14 Jun 2013

Total posts 360

As Citi runs Diners Club Australia and Diners is like Amex exempt from the new RBA rules and so can command a hefty premium I reckon we will see the "Qantas Diners Club" card.

John Phelan

John Phelan

Qantas - Qantas Frequent Flyer

28 Oct 2011

Total posts 322

The make-or-break issue will be the points earn per dollar, and whether it is capped. QF have a chance here to nab a large slice of the market.

Kevin Cheung

Kevin Cheung

13 Sep 2016

Total posts 14

Bring it on, Qantas is pushing more info these areas such as with its own-branded health insurance and also travel insurance rumoured to be on the way. Of course they are 'white-label' products but it's a smart move and if Qantas is smart they will really offer some great launch deals and point-per-dollar earning rates.

deany83

deany83

Qantas - Qantas Frequent Flyer

21 Jul 2014

Total posts 135

Travel has already been bought under the Qantas Assure banner white labeled from QBE

iM

iM

Qantas - Qantas Frequent Flyer

27 Jul 2016

Total posts 50

I'd get it, having nailed my colours to the Roo and One World...

mviy

mviy

05 May 2016

Total posts 527

Perhaps QANTAS could offer a discounted annual fee for those who have high status e.g. Gold or above?

If the card includes QANTAS Club access then perhaps they could reduce the annual fee by that amount for those members or even waive the annual fee.

Or a few distinct credit card products one providing a discount for QANTAS Club membership and another not including QANTAS Club membership?

If QANTAS does their own credit card and gets the sign up bonus right I'd seriously consider getting it.

superflyer

superflyer

18 Apr 2015

Total posts 68

"We are the world’s largest card issuer but it’s not just in terms of measuring market share, it’s also the value we bring to customers"  ... well in my personal experience no - charge $200+ annual fee on my Qantas-linked card and cut reward points earn to 0.5 per $1 is not value in my opinion.

lm1

lm1

Qantas - Qantas Frequent Flyer

05 Feb 2015

Total posts 28

Given the imminent departure of the bank issued Amex cards, this is a very interesting prospect.  Might just hold off on jumping to a QF-branded American Express as a replacement for the now useless ANZ QFF Black....

troels

troels

02 Mar 2017

Total posts 1

Very annoying - my partner and I both just got cards. I'm hoping this will be justification for the refund of the fees. I'm going to ditch ANZ too - will stick with my 28Degrees and Citibank cards for overseas purchases. I got rid of my bank accounts with ANZ last year, now its time for the credit cards too. And I say this as someone who currently works for ANZ.

AlexTravAddict

AlexTravAddict

Qantas - Qantas Frequent Flyer

17 May 2015

Total posts 72

Be careful if you pay using a Qantas voucher. Normally these type of offers use the date the voucher was purchased and not the date the flights were booked (many readers would have bought gift vouchers during the 5 points per dollar promotion around Christmas). If you use a voucher from earlier in the year or from 2016 the offer probably won't trigger. My experience is that Qantas will eventually manually credit the bonus status credits, but it involves quite a bit of follow up and haggling. Qantas will also make you wait 6 weeks before they will consider manually crediting the bonus status credits (as per there terms and conditions 'Bonus Status Credits may take up to 6 weeks after completion of your travel to be credited to your Qantas Frequent Flyer account').

Batesy

Batesy

Qantas - Qantas Frequent Flyer

17 Jun 2016

Total posts 13

Hmmm

 Big change in points earn

Looks like my spend will now revert back to my Amex issued plat charge card. At least they have some spending points bonuses for travel and dining. Might look at a refinance of mortgage with ANZ as well......

worldwanderer

worldwanderer

Qantas - Qantas Frequent Flyer

13 Jan 2017

Total posts 71

Having paid several thousand dollars for my partner and I to become Lifetime Members of QC a few years back when they were available, I will be spewing copious x-rated words that cannot be entered to this website to all and sundry if Qantas start giving away free lounge access with a credit card.

worldwanderer

worldwanderer

Qantas - Qantas Frequent Flyer

13 Jan 2017

Total posts 71

On a separate note, I still have a Diners card (and an ANZ AMEX) but must always carry a Visa Card with me because of the very few places that will accept a Diners card outside of AU and US and the usual exorbitant fees levied on each transaction. 

The main reason I still carry the Diners is the extensive network of lounge perks outside Australia when not travelling on a QF issued ticket.

rcnr25

rcnr25

QANTAS

12 Jun 2014

Total posts 23

The timing could suit me quite well. This will put some pressure on the big banks to limit how much they cut points earn.

NZ_Flyer

NZ_Flyer

Qantas - Qantas Frequent Flyer

07 Oct 2015

Total posts 6

I hope they do something similar for New Zealand. We desperately need a better card than the Qantas ANZ Visa!

krisdude

krisdude

Air New Zealand - Airpoints

21 Jan 2016

Total posts 160

Qantas is only doing what Air NZ did 4 years ago, when Air NZ released its own range of branded Mastercard cards called 'Air New Zealand Airpoints' is association with Kiwibank. The range of cards are Air New Zealand Airpoints low fee Mastercard, Air New Zealand Airpoints Standard Mastercard and Air New Zealand Airpoints Platinum  Mastercard.

The Air New Zealand Airpoints Platinum  Mastercard, offers cardholder's one Airpoints Dollar for every NZ$75.00 of eligible spend and one Status Point for every NZ$200.00 spent, complimentary overseas travel insurance, discounted Koru membership, non expiring Airpoints Dollars as long as you are cardholder and two complimentary single-entry Air New Zealand domestic and international Lounge passes for every NZ$20,000 spent on your card in each year. Annual rate for the card is NZ$150.00 per year.

Also Air NZ signed a 10 year 'Airpoints' marketing agreement with Westpac New Zealand for a range of Westpac Airpoints brand credit cards being Westpac  Airpoints low fee Mastercard, Westpac Airpoints Standard Mastercard, Westpac Airpoints Platinum  Mastercard, Westpac Airpoints World  Mastercard and a Westpac Airpoints debit  Mastercard.

Westpac Airpoints Platinum  Mastercard offers the cardholder one Airpoints Dollar for every NZ$75.00 spent on the card, one Airpoints Dollar for every NZ$70.00 equivalent spent on the card in all other currencies, one Status Point for every NZ$225.00 spent on the card,  join  Air New Zealand Koru Club waived joining fee will be waived, NZ$145 discount off a standard 12-month Individual Koru Membership rate, Airpoints Dollars will never expire as long as you’re a cardholder and up to 35 days of overseas travel insurance. Annual rate for the card is NZ$150.00 per year.

Westpac Airpoints World  Mastercard offers the cardholder one Airpoints Dollar for every NZ$65.00 spent on the card, one Airpoints Dollar for every NZ$50.00 equivalent spent on the card in all other currencies, one Status Point for every NZ$225.00 spent on the card, join Air New Zealand Koru Club with joining fee will be waived, NZ$145.00 discount off a standard 12-month Individual Koru Membership rate, Airpoints Dollars will never expire as long as you’re a cardholder, up to 120 days of overseas travel insurance and free Priority Pass lounge access to over 900 airport lounges around the world. Annual rate for the card is NZ$390.00 per year.

Also there a Westpac Airpoints Business Mastercard for the small to medium business owners offering the cardholder one Airpoints Dollar for every NZ$75.00 spent on the card, and one Status Point for every NZ$225.00 spent. Annual fee is free if the business owner has a Westpac Airpoints Platinum card.

I suspect that the new Qantas card would built around either Air New Zealand Airpoints Platinum Mastercard or Westpac AirAirpoints World  Mastercard since Qantas Cashcard is a Mastercard product.

peteshep

peteshep

15 Feb 2013

Total posts 135

This was all looking promising until I read that it's being issued by Citi. They'd have to be the single worst organisation I've ever dealt with. Especially when it comes to cancelling the card and you have to have the inevitable argument with the retention team. It would have to be a brilliant offer for me to even consider another card with them - absolute minimum 100k points and no annual fee for at least the first year.

AT

AT

Qantas - Qantas Frequent Flyer

14 Sep 2012

Total posts 259

Exactly!! I couldn't agree more. Citi is the worst of them all. I closed down my Citibank card and had a Virgin money card way back when and they made things so difficult from same aweful online website, terrible "just reading from the script" call Centre staff based somewhere whose mantra was just keep saying "anything more I can help you with sir" will remove any and all previous problems that never got addressed ... and on and on I could go. 

I'm already smelling a rat with this card. 

smithrhy

smithrhy

Virgin Australia - Velocity Rewards

28 Oct 2014

Total posts 19

I have to disagree with this.  Have been a Citibank customer for 8yrs+, having had Citi Emirates, Prestige, Signature and Simplicity cards and very high spend (100K+) for a couple of years.  Not regularly using their credit cards currently as I moved over to ANZ Black... but I think I will be coming back if Qantas nails their new credit card.

freshthoughts

freshthoughts

Qantas - Qantas Frequent Flyer

08 Aug 2016

Total posts 59

it really needs to have a compelling uncapped points earning ratio  to be attractive

at least 1 point per dollar on everyday spend uncapped

Meridiengroup

Meridiengroup

26 Aug 2012

Total posts 33

Interesting to note that we read about it in media before receiving direct communication from QF. As platinum member I thought they would want to talk to highest value customers first? Coincides with banks all dropping earning rates earlier this week.

turbojezz

turbojezz

Qantas - Qantas Frequent Flyer

20 Mar 2014

Total posts 130

i hope the card supports apple pay!

smithrhy

smithrhy

Virgin Australia - Velocity Rewards

28 Oct 2014

Total posts 19

Seeing as Citibank doesn't offer Apple Pay on their own credit cards (in Australia) as yet - I don't like our chances!  Should be enabled for Samsung Pay, though.

Tomp

Tomp

Qantas - Qantas Frequent Flyer

05 May 2017

Total posts 1

Earning points and enticing entry offers are all well and good but it would be nice if it was possible to travel using points in the class you want and when you want

AT

AT

Qantas - Qantas Frequent Flyer

14 Sep 2012

Total posts 259

Couldn't agree more. I've just done a reward booking with SQ on Krisflyer in biz class from Oz through Asia and I was shocked by just how easy it was and got instant confirmation on a waitlist just by phoning them. 

DRW

DRW

Qantas - Qantas Frequent Flyer

18 Apr 2014

Total posts 19

If it can be used to pay the ATO, that would be a strategic advantage.

Nuttynorton

Nuttynorton

11 Jun 2016

Total posts 14

With all the major banks reining back their amex point earn i can see this card taking off. boom boom 

paulbnz

paulbnz

15 Aug 2014

Total posts 7

So what about New Zealand? We loose out on this opportunity to earn points, etc., like some many other opportunities! For example, we can earn points shoppoing at a supermarket ...

WeeWillyWonka

WeeWillyWonka

13 Feb 2015

Total posts 13

If this card turns out the same way as their Qantas Cash card product, then pass.

shane.tomlinson

shane.tomlinson

Qantas - Qantas Frequent Flyer

28 Oct 2016

Total posts 9

Been looking for a replacement for my Velocity branded Amex now that we fly QANTAS at work, and this might be it if they can get the opening offer and ongoings like spend levels and QANTAS CLub membership right.

Notsinrub

Notsinrub

Qantas - Qantas Frequent Flyer

14 Dec 2016

Total posts 12

As a lifetime QC member I would not be happy to see the QC membership further devalued but other than that seems like it could be worth a close look when all is revealed

Vulch

Vulch

09 Jan 2016

Total posts 44

Suspect as with all new Qantas offerings, once we hear the details we will sadly disappointed and at best, 'meh'. 

Bob Greenberg

Bob Greenberg

Virgin Australia - Velocity Rewards

08 May 2017

Total posts 13

Good i will drop my Virgin card now and change because they has just announced a huge drop in reward point for VA flights. 

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