The encyclopedia · Marketing & Brand · Marketing decision · 2011
Air Miles became Avios — and 8 million members found 'free' flights now cost £301 extra
The UK's best-known loyalty scheme merged into Avios in 2011. Members kept their points but lost the tax-free redemptions that made the programme worth joining.
Air Miles · IAG · 2011-11-16
What happened
In September 2011, the UK Air Miles programme — which had 8 million customers at its peak in 2007 — announced it would be shut down and merged with BA Miles and Iberia Plus to create Avios, effective 16 November 2011. Members' balances were converted at 1 Airmile = 10 Avios. The Air Miles brand, running since 1988, was extinguished overnight.
Under the old scheme, members could redeem miles for flights without paying extra taxes, fees or charges — the flights were genuinely free. Under Avios, members still needed points but also had to pay cash: a European return cost roughly £27 in charges; a London–New York return required points plus £301 per person; a Sydney return could cost £497 in charges on top of points. Some short-haul routes required more points after conversion — Amsterdam and Paris rose from 750 Airmiles to 9,000 Avios, a 20% increase.
Members felt 'robbed' and 'cheated.' Facebook campaigns and a protest website were launched. Some members had been encouraged to buy or top up miles shortly before the change, increasing anger. The backlash damaged trust in the Avios brand from its launch day, and the transition became a case study in how not to manage a loyalty programme change.
Why it happened
- The conversion preserved the number of points but destroyed the redemption model — members had joined for tax-free flights, and the new scheme made taxes the largest part of the cost
- The programme encouraged members to accumulate miles right up to the transition, then changed the terms — the timing made the devaluation feel deliberate rather than incidental
- The rebrand was announced with only two months' notice for a programme with 8 million members, giving no time for members to redeem under the old terms
The lesson
A loyalty programme's value is the redemption terms, not the points balance — converting points at par while adding cash charges is a devaluation, and members will read it as one.
Aftermath
The Air Miles brand ceased to exist on 16 November 2011. Avios continued as the loyalty currency for BA, Iberia and later other IAG airlines, but the transition's bitterness was cited in subsequent loyalty programme changes as the example to avoid. The case is referenced in UK consumer-protection discussions about whether loyalty programme terms should carry stronger contractual protections.
Sources
- The Guardian: Angry flyers as Air Miles becomes Avios
- The Independent: Inside Travel — the end of Air Miles
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