Members of JetPrivilege should avoid panic spending of air miles: Expert

To avoid risks members should keep using their miles as regularly as they earn them

The recent turmoil at Jet Airways has left members of its loyalty programme, JetPrivilege, a worried lot. They are concerned about whether the frequent-flyer miles they have accumulated will have any worth, and whether they will be honoured if and when a new strategic investor takes charge at Jet. The loss of miles by flyers at the time of Kingfisher Airlines’ closure has also led to heightened concerns this time. Experts, however, say that the current situation is different and members have much less to worry about.

In the case of Kingfisher Airlines, the frequent-flyer miles were held on the books of the airline. When it closed down, customers of its loyalty programme lost their accumulated miles. In the current case, the miles are held on the books of Jet Privilege Private Limited, a separate company. Its majority owner is Etihad, which holds a 50.1 per cent stake. Says  a JetPrivilege official: “We would like to reassure all JetPrivilege members that their JPMiles as well as future redeemed tickets or upgrades on any eligible partner airline are not affected by any present or future environment changes.”

JetPrivilege, the loyalty programme, is also very valuable. “Besides the landing slots that Jet has at various airports, its loyalty programme is perhaps the most valuable thing the airline possesses,” says Devesh Agarwal, editor-in-chief of Bangaloreaviation.com. 

The members of this loyalty program are often people who fly more than 60 times a year. Therefore, it is in the interest of the promoters to retain them. Any adverse change to the terms and conditions of the loyalty programme would be a sure way of losing them, which the promoters would be reluctant to do.

Moreover, JetPrivilege has evolved into a much broader rewards programme. “There are more than a hundred ways in which JetPrivilege customers can redeem the JPMiles they have accumulated, besides purchasing tickets of Jet Airways,” says Ajay Awtaney, founder editor of LiveFromALounge.com, an Indian frequent-flyer website. So even if, hypothetically, the airline were to close down, customers would still, in all likelihood, be able to use their airmiles to purchase tickets on partner airlines, of which there are more than 20. They could also use them for hotel bookings, to buy fuel at Indian Oil petrol pumps, to buy gift vouchers that can be used on Amazon, and so on. 

Recently, JetPrivilege also launched a facility that allows customers to use their JPMiles to buy tickets of even non-partner airlines.  

Experts suggest that with a consortium of banks led by the State Bank of India taking charge at the airline and looking for a new investor, the situation appears to be stabilising. “Members of JetPrivilege should, therefore, avoid panic spending of their miles,” says Awtaney. Each mile fetches a different value in rupee terms, depending on where and how you redeem it. Make sure that you use your miles in a way that maximises their value. At the same time, members should avoid hoarding lakhs of miles. 

“The more miles you accumulate, the higher is the risk you carry. So, keep using your miles regularly as you earn them. Moreover, airlines change the terms of their loyalty programmes, at times to the detriment of members, so it is best not to hoard too many miles,” says Agarwal.

Become a smart spender of miles

• Most customers use their air miles in such a way that they get a value of 25-50 paise per mile
• If used smartly, you could get a value of Rs 1.50-1.75 per mile
• If you redeem miles to purchase a ticket for a short-haul, domestic flight and in the economy class, you will get less value
• Use miles to buy a business-class ticket for a longer, international flight to get  
• more value    
• Value is lower when redeemed for ticket on non-partner airline or hotel room