General Abonnement (GA) on AC?
Jul 7, 2000 | 9:38 pm
#1
Original Poster
Join Date: Feb 2000
Location: YYZ, YYJ, ZRH
Programs: AC MM
Posts: 430
General Abonnement (GA) on AC?
On the Swiss rail system, it is possible to buy an annual pass, which is referred to as a general abonnement (GA for short). More information on this topic can be found at http://s26282.sbb.ch/pv/gabasis_e.htm
Now that we have about as much competition in the Canadian air transport industry as the Swiss have in their rail transport industry, I wonder if it would make sense for Air Canada to introduce a GA?
A 2nd class (economy) GA on the SBB (Swiss railway) costs about CA$ 2,500 a year, and a 1st class GA costs about CA$ 4,000. For this the user gets a small ID card and can use the domestic rail system as much as they want for one year.
It would be interesting to consider how to price this for Air Canada. Perhaps they could sell two types of GA, one for all North American, one for worldwide.
A "Y" class North American GA could cost, say, CA$ 40,000 for a year. Booking flights would require the same process as booking a Y ticket. Maybe there could be a cheaper North American GA for people who are willing to put up with travel restrictions - for example, 7 day minimum advance booking, and Saturday night stayover. This could cost CA$ 20,000, and would appeal to the leisure traveller.
If a person had a GA, both they and the airline could forget about Aeroplan, points, all that stuff - who would need it? Also forget about paper tickets - everything could be done with an "E-ticket", since there would be no need for cash transactions, other than the one fee each year.
For a worldwide GA, for Y class with no booking restriction, perhaps CA $75,000 a year (good on domestic flights as well)? J class perhaps CA $100,000?
Forget all the interline stuff, Star Alliance stuff, etc - just a simple pass, buy it and use it. No tears, no complications, no perks. I doubt that many people would over-use it, because there would be no incentive to (no points or miles), and I know from experience that when you are doing 20 or more trans-atlantic segments a year, one gets real tired of air travel.
Can anyone elaborate further on this? Any thoughts? For the first week, let's just brainstorm the positive (in favour of)thoughts, or possible variations. No shooting ideas down just yet. After a week is up, then all the posts with the reasons why it may not work will be welcome.
Air Canada is a pretty innovative carrier, and I think it would be a worldwide first if an air carrier tried a GA pass.
It would be particularily enlightening if there is a forum member out there who has some experience in airline ticket pricing and yield management who could contribute his or her thoughts.
Now that we have about as much competition in the Canadian air transport industry as the Swiss have in their rail transport industry, I wonder if it would make sense for Air Canada to introduce a GA?
A 2nd class (economy) GA on the SBB (Swiss railway) costs about CA$ 2,500 a year, and a 1st class GA costs about CA$ 4,000. For this the user gets a small ID card and can use the domestic rail system as much as they want for one year.
It would be interesting to consider how to price this for Air Canada. Perhaps they could sell two types of GA, one for all North American, one for worldwide.
A "Y" class North American GA could cost, say, CA$ 40,000 for a year. Booking flights would require the same process as booking a Y ticket. Maybe there could be a cheaper North American GA for people who are willing to put up with travel restrictions - for example, 7 day minimum advance booking, and Saturday night stayover. This could cost CA$ 20,000, and would appeal to the leisure traveller.
If a person had a GA, both they and the airline could forget about Aeroplan, points, all that stuff - who would need it? Also forget about paper tickets - everything could be done with an "E-ticket", since there would be no need for cash transactions, other than the one fee each year.
For a worldwide GA, for Y class with no booking restriction, perhaps CA $75,000 a year (good on domestic flights as well)? J class perhaps CA $100,000?
Forget all the interline stuff, Star Alliance stuff, etc - just a simple pass, buy it and use it. No tears, no complications, no perks. I doubt that many people would over-use it, because there would be no incentive to (no points or miles), and I know from experience that when you are doing 20 or more trans-atlantic segments a year, one gets real tired of air travel.
Can anyone elaborate further on this? Any thoughts? For the first week, let's just brainstorm the positive (in favour of)thoughts, or possible variations. No shooting ideas down just yet. After a week is up, then all the posts with the reasons why it may not work will be welcome.
Air Canada is a pretty innovative carrier, and I think it would be a worldwide first if an air carrier tried a GA pass.
It would be particularily enlightening if there is a forum member out there who has some experience in airline ticket pricing and yield management who could contribute his or her thoughts.
Jul 8, 2000 | 7:11 am
#2
FlyerTalk Evangelist
Join Date: Mar 2000
Location: Southern Alberta
Posts: 20,547
An innovative idea proposed here. My question for discussion is: is there enough business out there to warrant such an initiative?. Companies often have negotiated preferential fares for their frequent flyers. Would this type of fare be more advantageous ? The only way to find out is to business case it...
Jul 8, 2000 | 9:25 am
#3
Join Date: Mar 1999
Location: Winnipeg Canada, Cambridge England. CP - EP (R.I.P.) formerly AC-SE now lower than the lowest low.
Posts: 828
MaxPower, I just lifted the following from the United thread, I believe this is similar to the type of scheme you are suggesting.
Stewart.
Here is United Airlines Pass Plus Program Options and Benefits from May 1994. This is not a current program description.
quote:
--------------------------------------------------------------------------------
Program Options
and Benefits
United Airlines
Pass Plus
Significant
savings.
Freedom from
future fare increases.
Unrestricted
travel.
Exceptional amenities
and privileges.
United Pass Plus is available in a range of program options designed to suit the needs of the most frequent travelers. Each plan offers the ultimate in convenience and cost control, guaranteeing protection against future fare increases.
United Pass Plus Program Options
12,500 Miles Per 6 Months
Type: 6-month trial offer; New Members Only, One-Time Purchase.
Price in U.S. Currency (1): $4,500
Validity: Valid for 6 months or 12,500 miles, whichever comes first. Holder may take along one companion per flight. (2)
25,000 Miles Per Anniversary Year
Type: 2-Year Term With Companion
Price in U.S. Currency (1): $15,500
Validity: Valid for 2 years. Holder may take along one companion per flight. (2)
Type: 5-Year Term With Companion
Price in U.S. Currency (1): $34,000
Validity: Valid for 5 years. Holder may take along one companion per flight. (2)
Type: Lifetime
Price in U.S. Currency (1): $85,000 (3)
Validity: Valid for the lifetime of the Holder. Holder may take along one companion per flight. (2)
Unlimited Mileage
Type: Unlimited 5-Year Term
Price in U.S. Currency (1): $255,000
Validity: Valid for 5 years only.
Type: Unlimited 5-Year Term With Companion
Price in U.S. Currency (1): $495,000
Validity: Valid for a 5 year term and will entitle Holder to take along one companion per flight. |
Type: Unlimited Lifetime
Price in U.S. Currency (1): $520,000 (4)
Validity: Valid for the lifetime of the Holder.
Type: Unlimited Lifetime With Companion
Price in U.S. Currency (1): $1,010,000 (5)
Validity: Valid for the lifetime of the Holder and entitles Holder to take along one companion per flight.
(1) Prices listed are subject to change without notice. Prices include 10% tax.
(2) Miles flown by companion will be deducted from the Holder's allotment.
(3) Cost based on $85,000 for age 40 or under with $605 reduction for each year over 40, up to 59 years of age; over age 60 deduct an additional $2,090 per year to a minimum price of $35,000.
(4) Cost based on $520,000 for age 40 or under with $2,750 reduction for each year over 40, up to 59 years of age; age 60 to 69 deduct an additional $11,330 per year; over age 69 deduct an additional $25,630 per year to a minimum price of $35,000.
(5) Cost based on $1,010,000 for age 40 or under with $5,060 reduction for each year over 40, up to 59 years of age; age 60 to 69 deduct an additional $22,220 per year; over age 69 deduct an additional $50,160 per year to a minimum price of $35,000.
Additional Mileage
At the time of purchase or at any time during the first 11 months of any anniversary year, the purchaser or Holder of a valid Pass Plus may purchase additional mileage in annual mileage blocks of 5,000 miles subject to the applicable charges (not applicable to the 6-month term program). Current charges are listed in the following chart:
code:
--------------------------------------------------------------------------------
Type of Block Additional Mileage Block Charges for each Block* 5-Year Term 5,000 miles per year $ 6,710 Lifetime 5,000 miles per year $ 13,640 #Variable Term 1-Year Term 5,000 miles $ 1,650
--------------------------------------------------------------------------------
How Pass Plus Works
Once the purchaser has provided proper application, contract and paid in full, a Pass Plus card will be issued to each participant and must be carried by the member to obtain the travel and special services offered by United and United Express.** United travel may be obtained for the card holder only (and one companion if applicable).
Mileage Allowance
At the same time the card is issued, a Pass Plus account will be established and credited with the annual mileage allowance purchased. Based on the card Holder's itinerary, the Pass Plus system will decrease the mileage bank accordingly. The amount of deducted mileage will be determined on the basis of an approved origin-destination mileage -- regardless of whether travel is non-stop, connection or through service. Additional conditions are specified in the Pass Plus Contract.
At the card Holder's option, the Pass Plus may be used for domestic First Class travel with mileage deducted at a 35% premium above the applicable origin-destination mileage and a 15% premium for domestic Connoisseur Class. For all international destinations the following mileage charges apply:
InternationalAdjustment+
code:
--------------------------------------------------------------------------------
First Class Connoisseur Class Economy ClassTransatlantic, Intra-Europe, Central 145% 115% 80%and South AmericaTranspacific and Intra-Pacific 150% 115% 80%
--------------------------------------------------------------------------------
+ Subject to change without notice and local regulations. International travel surcharge applies from origin to destination on the international journey. Travel between the U.S. and Canada or Mexico is considered domestic travel and is not subject to the International Adjustment.
Each month, a statement will be sent reporting the status of your Pass Plus account -- annual miles ticketed or flown and miles remaining.
Every year, on the anniversary date, the Pass Plus Holder's account will be credited with the annual pre-purchased miles. During any anniversary year if the mileage used exceeds the mileage allowance, such mileage will be billed at a rate per mile noted in the previous month's statement. Tickets will not be issued based solely on excess mileage during the program extension period. If any mileage remains at the expiration of the 5-year term program, the Holder has an additional year to use previously purchased mileage.
* Subject to change without notice. Prices include 10% tax.
** United Express travel must be in conjunction with
travel on United.
# Cost based on purchase price of $13,640 for age 40 and under; deduct $66 for each year over 40 to 59 years of age; age 60 and over deduct an additional $550 per year to a minimum price of $6,710. Blocks must be purchased at time of 25,000-mile Lifetime Pass Plus purchase.
Destinations
Pass Plus can be used throughout the current United Airlines international and domestic system including the following countries:
code:
--------------------------------------------------------------------------------
Argentina England Korea SpainAustralia France Mexico Switzerland*Belgium Germany* New Zealand TaiwanBrazil* Greece Panama ThailandCanada Guatemala People's Republic of ChinaChile* Holland Philippines Trinidad & TobagoCosta Rica Hong Kong Puerto Rico UruguayEl Salvador Japan* Singapore Venezuela
--------------------------------------------------------------------------------
* Travel to/from these countries must originate in the United States
For U.S. domestic travel, no stopovers are permitted on a
single ticket. For international travel, stopovers at points
outside the USA are permitted subject to non-circuitous routings.
Any current or future international destinations are subject to
tariff approval and as stated in the Pass Plus agreement, card
holders will be notified of any new approved international
destinations.
United Pass Plus Special Services And Benefits
All Pass Plus purchasers receive special services throughout the period of the plan purchased. It may be necessary to present Pass Plus identification to verify eligibility for these services.
Complimentary Membership in the Red Carpet Club--Each Pass Plus Holder and his/her spouse may enjoy the facilities and services provided by any of United's Red Carpet Clubs located in major airports on the United system. Spouse card issued to original card Holder only.
Complimentary Upgrade Certificates--Each original Pass Plus account card Holder will receive eight complimentary First Class upgrade certificates. Certificates will apply to 1,000 miles of upgraded travel. Additional certificates are available for purchase.
Special Reservations Telephone Numbers--A separate toll-free number for reservations handling is reserved for Pass Plus Holders.
First Class Check-In--Pass Plus Holders are eligible for First Class check-in privileges at special check-in counters provided at most major airports at home and abroad.
Convenient Ticketing Alternatives--The Pass Plus system offers a number of ticketing options. Once a reservation is established, the card Holder or agency of record (with written authorization) presents the Pass Plus card to a United City Ticket Office, Red Carpet Club, or at a First Class lobby position prior to flight. Coupons for the entire itinerary are automatically generated based on the computer profile. Tickets may also be acquired by mail. Based on United's established procedures, a designated travel agent may also generate Pass Plus tickets. In addition, card Holders may write their own United tickets based on an established reservation. Upon request, self-ticketing stock is provided to Pass Plus card Holders. (Mileage deducted for United Express flights using this self-ticketing option will be segment-based.)
Complimentary Cocktails and Headsets--Pass Plus members traveling Coach are entitled to two complimentary cocktails and free headsets on flights where these services are offered.
Monthly Statement--Pass Plus participants will receive a monthly statement from United detailing the itinerary of trips ticketed, corresponding mileage, mileage remaining, and any miles in excess of the annual allowance. Corporate statements are available for corporate accounts.
Mileage Plus Program Privileges--All Pass Plus accounts qualify for membership in Mileage Plus at Premier status. A cap of 500,000 annual miles of accrual applies for unlimited Pass Plus program participants.
United Express Participation--Pass Plus is valid on United Express when travel is in conjunction with a United Airlines flight. A 25% discount on United Express partners will also be extended on unrestricted coach fares when travel is not in conjunction with a United flight.
Important Information about United Pass Plus--The Pass Plus Program is restricted to U.S. residents possessing a U.S. Social Security number. Additional conditions are specified in the Pass Plus Contract.
United Pass Plus offers a unique package of savings, benefits and amenities for the most frequent travelers. We look forward to welcoming you soon to the United Pass Plus program.
--------------------------------------------------------------------------------
Stewart.
Here is United Airlines Pass Plus Program Options and Benefits from May 1994. This is not a current program description.
quote:
--------------------------------------------------------------------------------
Program Options
and Benefits
United Airlines
Pass Plus
Significant
savings.
Freedom from
future fare increases.
Unrestricted
travel.
Exceptional amenities
and privileges.
United Pass Plus is available in a range of program options designed to suit the needs of the most frequent travelers. Each plan offers the ultimate in convenience and cost control, guaranteeing protection against future fare increases.
United Pass Plus Program Options
12,500 Miles Per 6 Months
Type: 6-month trial offer; New Members Only, One-Time Purchase.
Price in U.S. Currency (1): $4,500
Validity: Valid for 6 months or 12,500 miles, whichever comes first. Holder may take along one companion per flight. (2)
25,000 Miles Per Anniversary Year
Type: 2-Year Term With Companion
Price in U.S. Currency (1): $15,500
Validity: Valid for 2 years. Holder may take along one companion per flight. (2)
Type: 5-Year Term With Companion
Price in U.S. Currency (1): $34,000
Validity: Valid for 5 years. Holder may take along one companion per flight. (2)
Type: Lifetime
Price in U.S. Currency (1): $85,000 (3)
Validity: Valid for the lifetime of the Holder. Holder may take along one companion per flight. (2)
Unlimited Mileage
Type: Unlimited 5-Year Term
Price in U.S. Currency (1): $255,000
Validity: Valid for 5 years only.
Type: Unlimited 5-Year Term With Companion
Price in U.S. Currency (1): $495,000
Validity: Valid for a 5 year term and will entitle Holder to take along one companion per flight. |
Type: Unlimited Lifetime
Price in U.S. Currency (1): $520,000 (4)
Validity: Valid for the lifetime of the Holder.
Type: Unlimited Lifetime With Companion
Price in U.S. Currency (1): $1,010,000 (5)
Validity: Valid for the lifetime of the Holder and entitles Holder to take along one companion per flight.
(1) Prices listed are subject to change without notice. Prices include 10% tax.
(2) Miles flown by companion will be deducted from the Holder's allotment.
(3) Cost based on $85,000 for age 40 or under with $605 reduction for each year over 40, up to 59 years of age; over age 60 deduct an additional $2,090 per year to a minimum price of $35,000.
(4) Cost based on $520,000 for age 40 or under with $2,750 reduction for each year over 40, up to 59 years of age; age 60 to 69 deduct an additional $11,330 per year; over age 69 deduct an additional $25,630 per year to a minimum price of $35,000.
(5) Cost based on $1,010,000 for age 40 or under with $5,060 reduction for each year over 40, up to 59 years of age; age 60 to 69 deduct an additional $22,220 per year; over age 69 deduct an additional $50,160 per year to a minimum price of $35,000.
Additional Mileage
At the time of purchase or at any time during the first 11 months of any anniversary year, the purchaser or Holder of a valid Pass Plus may purchase additional mileage in annual mileage blocks of 5,000 miles subject to the applicable charges (not applicable to the 6-month term program). Current charges are listed in the following chart:
code:
--------------------------------------------------------------------------------
Type of Block Additional Mileage Block Charges for each Block* 5-Year Term 5,000 miles per year $ 6,710 Lifetime 5,000 miles per year $ 13,640 #Variable Term 1-Year Term 5,000 miles $ 1,650
--------------------------------------------------------------------------------
How Pass Plus Works
Once the purchaser has provided proper application, contract and paid in full, a Pass Plus card will be issued to each participant and must be carried by the member to obtain the travel and special services offered by United and United Express.** United travel may be obtained for the card holder only (and one companion if applicable).
Mileage Allowance
At the same time the card is issued, a Pass Plus account will be established and credited with the annual mileage allowance purchased. Based on the card Holder's itinerary, the Pass Plus system will decrease the mileage bank accordingly. The amount of deducted mileage will be determined on the basis of an approved origin-destination mileage -- regardless of whether travel is non-stop, connection or through service. Additional conditions are specified in the Pass Plus Contract.
At the card Holder's option, the Pass Plus may be used for domestic First Class travel with mileage deducted at a 35% premium above the applicable origin-destination mileage and a 15% premium for domestic Connoisseur Class. For all international destinations the following mileage charges apply:
InternationalAdjustment+
code:
--------------------------------------------------------------------------------
First Class Connoisseur Class Economy ClassTransatlantic, Intra-Europe, Central 145% 115% 80%and South AmericaTranspacific and Intra-Pacific 150% 115% 80%
--------------------------------------------------------------------------------
+ Subject to change without notice and local regulations. International travel surcharge applies from origin to destination on the international journey. Travel between the U.S. and Canada or Mexico is considered domestic travel and is not subject to the International Adjustment.
Each month, a statement will be sent reporting the status of your Pass Plus account -- annual miles ticketed or flown and miles remaining.
Every year, on the anniversary date, the Pass Plus Holder's account will be credited with the annual pre-purchased miles. During any anniversary year if the mileage used exceeds the mileage allowance, such mileage will be billed at a rate per mile noted in the previous month's statement. Tickets will not be issued based solely on excess mileage during the program extension period. If any mileage remains at the expiration of the 5-year term program, the Holder has an additional year to use previously purchased mileage.
* Subject to change without notice. Prices include 10% tax.
** United Express travel must be in conjunction with
travel on United.
# Cost based on purchase price of $13,640 for age 40 and under; deduct $66 for each year over 40 to 59 years of age; age 60 and over deduct an additional $550 per year to a minimum price of $6,710. Blocks must be purchased at time of 25,000-mile Lifetime Pass Plus purchase.
Destinations
Pass Plus can be used throughout the current United Airlines international and domestic system including the following countries:
code:
--------------------------------------------------------------------------------
Argentina England Korea SpainAustralia France Mexico Switzerland*Belgium Germany* New Zealand TaiwanBrazil* Greece Panama ThailandCanada Guatemala People's Republic of ChinaChile* Holland Philippines Trinidad & TobagoCosta Rica Hong Kong Puerto Rico UruguayEl Salvador Japan* Singapore Venezuela
--------------------------------------------------------------------------------
* Travel to/from these countries must originate in the United States
For U.S. domestic travel, no stopovers are permitted on a
single ticket. For international travel, stopovers at points
outside the USA are permitted subject to non-circuitous routings.
Any current or future international destinations are subject to
tariff approval and as stated in the Pass Plus agreement, card
holders will be notified of any new approved international
destinations.
United Pass Plus Special Services And Benefits
All Pass Plus purchasers receive special services throughout the period of the plan purchased. It may be necessary to present Pass Plus identification to verify eligibility for these services.
Complimentary Membership in the Red Carpet Club--Each Pass Plus Holder and his/her spouse may enjoy the facilities and services provided by any of United's Red Carpet Clubs located in major airports on the United system. Spouse card issued to original card Holder only.
Complimentary Upgrade Certificates--Each original Pass Plus account card Holder will receive eight complimentary First Class upgrade certificates. Certificates will apply to 1,000 miles of upgraded travel. Additional certificates are available for purchase.
Special Reservations Telephone Numbers--A separate toll-free number for reservations handling is reserved for Pass Plus Holders.
First Class Check-In--Pass Plus Holders are eligible for First Class check-in privileges at special check-in counters provided at most major airports at home and abroad.
Convenient Ticketing Alternatives--The Pass Plus system offers a number of ticketing options. Once a reservation is established, the card Holder or agency of record (with written authorization) presents the Pass Plus card to a United City Ticket Office, Red Carpet Club, or at a First Class lobby position prior to flight. Coupons for the entire itinerary are automatically generated based on the computer profile. Tickets may also be acquired by mail. Based on United's established procedures, a designated travel agent may also generate Pass Plus tickets. In addition, card Holders may write their own United tickets based on an established reservation. Upon request, self-ticketing stock is provided to Pass Plus card Holders. (Mileage deducted for United Express flights using this self-ticketing option will be segment-based.)
Complimentary Cocktails and Headsets--Pass Plus members traveling Coach are entitled to two complimentary cocktails and free headsets on flights where these services are offered.
Monthly Statement--Pass Plus participants will receive a monthly statement from United detailing the itinerary of trips ticketed, corresponding mileage, mileage remaining, and any miles in excess of the annual allowance. Corporate statements are available for corporate accounts.
Mileage Plus Program Privileges--All Pass Plus accounts qualify for membership in Mileage Plus at Premier status. A cap of 500,000 annual miles of accrual applies for unlimited Pass Plus program participants.
United Express Participation--Pass Plus is valid on United Express when travel is in conjunction with a United Airlines flight. A 25% discount on United Express partners will also be extended on unrestricted coach fares when travel is not in conjunction with a United flight.
Important Information about United Pass Plus--The Pass Plus Program is restricted to U.S. residents possessing a U.S. Social Security number. Additional conditions are specified in the Pass Plus Contract.
United Pass Plus offers a unique package of savings, benefits and amenities for the most frequent travelers. We look forward to welcoming you soon to the United Pass Plus program.
--------------------------------------------------------------------------------