Originally Posted by hydrogen

I shall attempt to do my best at offering a plausible explanation:

1) "... we have choices that might not include AC."
Yes, you do, but AC probably thinks that we are big suckers who won't switch. The other options are pretty much CX, CZ, or MU. None of which are *A (which matters if you want your miles). Yes, you can go CA, but I'm guessing that AC thinks it has a better hard and soft product than CA.

Other options involve a bigger hassle (connection in a foreign country, routing through Europe, etc.), and AC is willing to bet that you'll pay the convenience premium.

Or AC hopes that you guys are extremely patriotic and feel obligated to fly AC as Canadian citizens.

2) "If we buy an Asia Lat FP, we are totally going to fly AC to use the credits."
AC gives you eUps pretty much because it has to (otherwise FFs are not going to be happy). Giving eUps is not equivalent to using eUps. In AC's ideal world, no one should be able to use their eUps. Only revenue J should get to sit in J. AC knows you are going to use your eUps (and will have hoards of eUps if an Asia FP books into M or U), and they definitely don't want that if they can't get milk more money out of you (please see Asia Flex fares for more info).

3) "AC gets my money interest free for up to one year"
You pay now, but you fly next year. And it's always easier to spend money which you don't have/isn't yours. Since AC isn't the best at budgeting, that would just encourage bad spending on AC's part. You don't want AC to go belly up, do you?