Airlines

Finnair Collaborates with IAG Loyalty to Embrace Avios Starting 2024

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Beginning in early 2024, Finnair will update its Finnair Plus loyalty programme by making Avios its new loyalty currency.

Finnair Plus members, both current and new, will have more possibilities to accrue and spend the program’s new reward currency as a result of the partnership with IAG reward to adopt Avios. Additionally, a new spend-based platform will be used by the Finnair Plus programme.

Avios can now be spent on British Airways Holidays bookings(Opens in a new browser tab)

When members hit specific point thresholds within their current tier, the programme will provide new milestone advantages that will allow them to gain extra prizes like upgraded benefits.

Additionally, regardless of their tier status, members of Finnair Plus will now have free messaging-related internet access as a new perk on Finnair’s short-haul European flights operated by the narrow-body Airbus aircraft. This is an added incentive to sign up for the programme.

In addition, Finnair will spend money on new, larger lounge facilities on the Schengen side of Helsinki Airport, which serves as its primary hub. A special area will be reserved for top-tier members when the lounge relocates to new space in 2024. Before the new lounge opens, the present Schengen lounge will continue to service guests.

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Finnair will start using Avios as its new loyalty currency in the first quarter of 2024, giving Finnair Plus customers new chances to accrue and redeem loyalty points on partner airlines. This applies to online purchases made with thousands of top brands through shopping.ba.com and with IAG Loyalty’s expanding global network of partners, which includes BP, Nectar, and Uber in the UK, Areas airport retail, Cabify in Spain, and Bilt in the US.

Finnair’s oneworld partners British Airways Executive Club, Qatar Airways Privilege Club, and Iberia Plus all use Avios as their preferred method of payment. The value of the current Finnair Plus award miles will be converted to Avios at a 3:2 ratio, and the price of Avios will also be updated at the same rate.

Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

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The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

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The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.