Easyjet is to join the Nectar loyalty scheme in its first big commercial deal since settling a brand dispute with founder Sir Stelios Haji-Ioannou.
Shoppers who collect Nectar points — the big issuer is J Sainsbury, the supermarket chain — will in future be able to use them to pay for flights. Five hundred points will be worth £2.50. The tie-up is redemption only; flyers will not earn Nectar points when they buy tickets.
The link is a significant step for Easyjet, which so far, like most low-cost airlines, has steered clear of any loyalty or frequent flyer schemes.
In October the airline settled its two-year dispute with Haji-Ioannou over the use of its brand. Carolyn McCall, Easyjet’s chief executive, said: “Before the agreement we would not have been able to do something like this and we are looking at a number of other co-branding deals.” The company estimates that in the first year passengers will spend £15m to £20m-worth of Nectar points on flights.
Justin King, Sainsbury’s chief executive, said shoppers had requested a way to use their points for flights. The rival Tesco Clubcard lets customers exchange vouchers for British Airways miles. “Travel was top of their wishlist,” he said. “There will be no restriction on how you use Nectar points for flights; they will be just the same as cash.”