Travel rewards scheme AirMiles is being rebranded as Avios following the merger between British Airways and Iberia.

The loyalty schemes from both airlines will be amalgamated under parent company International Airline Group from November 16.

Users will be required to pay taxes, fees and charges on their flights. Charges will be capped at £27. Avios will continue to be run by BA subsidiary The Mileage Company.

Head of brand at The Mileage Company Rahul Patel said: “The ambition is to make the points a much more desirable and valuable currency than they currently are.”

The new scheme will offer benefits to existing customers including the ability to take one-way flights. They will also be able to use Avios for flight cabin upgrades.

Chris Nixon, managing director of Kelkoo Travel, said: “The news will come as a real blow to Airmiles loyalty programme members.

“What was previously seen as a fantastic free perk may lead to some members deserting the new Avios scheme for other loyalty programmes.

“In this tough economic climate the Airmiles programme probably provided a lifeline to some cash strapped travellers enabling them to enjoy cheaper travel.

“Airmiles customers have enjoyed a great deal for a long time now, but it was inevitable that the programme would have to move more in line with the industry norm.

“However, it’s not all bad news, as members will enjoy more flexibility under the new scheme. They’ll be able to collect points on BA and Iberia flights, which they’ll be able to use on both one-way and return flights.

“If you want to reap the full benefits of your Airmiles, you still have time to use them before the changes are introduced.”