Although Business Class fares to the South Pacific have fallen over the past two years as a result of increased competition, they are still relatively high. Business Class to Sydney from Los Angeles averages about $4,000 round trip, if booked 50 days in advance, and last-minute fares on the route hover around $7,000. With Continental’s entrance into the market—it begins Houston-Sydney service on Nov.16, 2011 using a B787—fares may drop further. But right now, the South Pacific is still a region where it pays to use miles to upgrade.
Two major U.S. carriers, Delta and United, and four international carriers, Air New Zealand, British Airways, Qantas, and V Australia, serve the South Pacific. Not every carrier flies to every destination, so this month we are highlighting those serving Australia and New Zealand. Next month we will focus on the South Pacific islands.
Key Fact: United now imposes a surcharge of up to $1,000 for upgrades on South Pacific routes, the only airline in this survey to do so.
Air New Zealand / Airpoints: D-
Miles required for a confirmed round-trip upgrade vary with the destination: It takes 3,260 Airpoints for an upgrade to Auckland from Los Angeles or San Francisco, or 3,960 to Sydney. Upgradeable economy fares to Auckland start at $1,888 from the West Coast, plus 3,260 Airpoints. Air New Zealand is a point-transfer partner with Starwood, but the exchange rate is unbelievably bad: 65 Starpoints for 1 Airpoint. It requires 180,000 Starpoints to get 3,260 Airpoints. That many Starpoints would buy four round-trip upgrades on Delta.
British Airways / Executive Club: C-
Requires 70,000 miles round-trip, and allows upgrades from Premium Economy fares. That’s useless from the West Coast because the upgradable fare is high ($3,800) and travel is via London. From the East Coast though, the savings can be as much as $1,800, giving you a return of 2.5¢ per mile. Miles can be obtained via point transfers from Amex Rewards, Starwood, or Diners Club.
Delta / SkyMiles: B-
Requires 50,000 miles round-trip, and allows upgrades with M and B coach fares. Upgradeable fares to Sydney from Los Angeles start at $2,469 (plus taxes) this summer, compared to Delta’s lowest 50-day advance Business Class fare of $3,758, making the return 2.6¢ per mile. The return improves as the fare increases. From New York, the savings amounts to $2,400, yielding a return of 4.8¢ per mile. You can get the miles via transfer partners Amex Rewards, Diners or Starwood, or buy them from Delta.
Qantas / Frequent Flyer: D
This mileage upgrade program is based on flight distance, meaning the farther you fly, the higher the cost in miles for an upgrade. Qantas’ low economy fares (B, G, H, K, L, M, S, and V codes) require a lot of miles, whereas upgrades from Premium Economy take fewer miles. For example, a Los Angeles-Sydney round-trip on a low economy fare costs $1,588 (code S) and 144,000 miles. Upgrading a Premium Economy fare costs $2,238 (code T) and 90,000 miles. Given the return on miles—1.6¢ with the low economy fare and 2¢ with the Premium Economy fare—we think you’re better off going with Qantas’ promotional Business Class fare of about $4,000, especially as Premium Economy is not offered on every flight. Qantas is not a transfer partner with Amex Membership Rewards, Starwood, or Diners, making its program useful mainly to those who fly Qantas regularly.
United Airlines / Mileage Plus: B
Requires 60,000 miles round-trip, imposes a surcharge of up to $1,000, and allows upgrades on all economy fares. The best time to use this program is when United runs an economy fare promotion, as it did this past April and May, when fares dipped to $550. Adding the $1,000 surcharge made the total $1,550 (plus taxes and fees) and 60,000 miles. That handily beats United’s lowest Business Class fare of about $3,850, and yields a return of 3.8¢ per mile. If you do not have United miles, buy them. Forget about using Starwood, because the exchange rate is two Starwood points for one United mile.
V Australia / Velocity: Incomplete
Useless for Americans, as the program is offered only to citizens of South Pacific countries, and allows only award ticket redemptions.
Lowest Upgradeable Economy Fares for Travel to the South Pacific 2
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