Tag Archives for air canada.
It seemed odd that Southwest Airlines Companion Pass members were being matched to Aeroplan 75K elite status. That’s being changed. Anyone with a Companion Pass has just two days to request a match and receive this level. After that they’ll be matching just to the 50K elite level.
Those of you with a Companion Pass should consider getting your match requests in now.
U.S. residents who are airline elite frequent flyers can get free Air Canada Aeroplan elite status for the rest of 2021, and keep that status for the 2022 program with by booking and flying just one roundtrip on Air Canada (or Air Canada Express or Rouge) by January 15, 2022.
This is huge for anyone with elite status and transferable credit card points, or anyone who also flies United.
The U.S. government proposed to fine Air Canada $25.55 million for selling tickets to customers, cancelling their flights, and refusing to issue refunds. When customers complained to the Department of Transportation, Air Canada claimed they weren’t subject to U.S. law. And Air Canada sought to dismiss the fine arguing that, despite U.S. government claims, the law doesn’t require refunding customers when an airline fails to provide the paid-for service anyway.
The response from the Department of Transportation to this nonsense is brutal.
During the pandemic, Air Canada cancelled the flights and kept passenger money. They didn’t deliver the service that was promised, but wouldn’t issue refunds. That’s stealing.
The DOT proposed a $25 million fine. Air Canada wants it dismissed, arguing that the law doesn’t actually forbid them from selling flights they don’t operate and pocketing the cash.
After more than a year Air Canada is issuing refunds to customers whose flights were cancelled due to the pandemic. They’re only doing this now that the Canadian government has forked over subsidies. They told the government they’d give money back to consumers, but only if the government gave them far more money first.
The Canadian government had backed Air Canada’s decision to keep customer money for transportation that was never provided. For flights to and from the U.S., though, this is a clear violation of U.S. law.
Twenty one months ago Air Canada announced they’d be acquiring Canadian low cost carrier Air Transat, in a deal that was finally going to be worth about three quarters of a billion dollars. That price got chopped down to less than $200 million during the pandemic.
The deal was delayed by Canada’s competition regulators, that pushed them into the pandemic and lowered the price. Now the deal has been terminated as a result of European Commission objections.
Loyalty isn’t primarily about points or benefits. It isn’t transactional. It’s about building a relationship based on taking care of customers and building trust. That’s difficult to do in a mass way, even with elite benefits because that group can number in the tens of thousands (for top elites) to the seven figures (for lowest level).
A program systematizes how guests are cared through. Benefits are part of doing that. In formulating a set of benefits it’s most important to understand what matters most to the customers that matter most. That’s often how a travel brand cares for the people the member cares most about.
When Air Canada relaunched the Aeroplan frequent flyer program – an American Express transfer partner, and soon to have a Chase co-brand credit card, so highly relevant to Americans – they committed to an award chart.
Right now though partner award pricing isn’t sticking to the chart. That means some awards are pricing higher than they should, and others are pricing for fewer miles.
Air Canada and Virgin Australia are now partners. Aeroplan redemptions on Virgin Australia are even available for online booking already.
Aeroplan continues to work well for Americans, I think, and perhaps even for those who fly Air Canada with elite status or their co-brand credit card. Whether they work as well as promoted for the general member in Canada who doesn’t sign up for a card depends on how pricing of Air Canada flights is managed going forward (but the program still appears to be a real improvement over what was offered before, without fuel surcharges).
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
