YYZ, you really cannot blame the travel agencies (Amex included) for charging you $25 to issue each ticket. The airlines have pared back their commissions to such a low level that all have implemented a $25 to $35 per ticket charge. There is staff time and a cost to issue a ticket. And afterall, for a free ticket that could be worth several thousand dollars, $50 is not outrageous.

It seems Amex may have been playing hardball with CP, but they should also have known CP's new management (i.e. Milton and company) were not going to respond in kind. Which is what they did. (Where to disgruntled Amex cardholders go for domestic travel: to AC, so they win either way and reduce CP's liabilities to Amex and others who bought ticekts at bulk discounts.) AC knows Amex has to play by its rules now, like it or not, since they are the only game in Canada.

I suspect we will see more incentives to use U.S. and non-Canadian carriers in Amex's revamped Rewards and Platinum program, as well as its other card promotions. This could in the end work to our benefit, so let's watch. I agree that the revamped program leaves much to be desired as outlined in the media release yesterday.

As for the Canadian Rewards program being worse than elsewhere in the world, each country has a program tailored to its domestic market needs. Partners are selected in part for their competitive attractiveness, but also may be limited by other commercial agreements. Until it instituted its 3.5K redemption charge, I feel we got good value from the program: not only points transfer valued at 2.25 per US$1 spent (thanks AW) but also a 15% to 20% discount on awards, particularly valuable on business class FF ticket bookings. And often the 1K bonus for using the Amex card to buy your tickets on CP was worth more points than the trip itself.

Yes, I agree the news came as a shock, and very suddenly. And I suppose had I not done my transfer last week, I'd have exploded like KH, and had fewer nice things to say about Amex. But from press stories today, it seems a bit like a "pox on both your houses" as two titans clashed and we little folk on the ground were hit by the debris. I will be upset if the Platinum program changed over the weekend too, and I cannot get a second ticket free on CP. (But I know I can use the U.S. program which offers greater airline choice, albeit I would have to buy a J of F class ticket to take advantage of it.)

Fair warning: Anybody planning to redeem AIR MILES on CP had better do it today. I suspect that will be the next shoe to drop. Afterall, CP basically is no longer carrying passengers at less than the cost of operating a seat on a given flight. That's been AC's secret for success, and why the new limitations on upgrades. CP is now in a position to ensure this can be implemented as their policy too.

By the way, Wall Street Journal has just reported that CP's new board have approved the creditor's plan which sees secured note holders getting 92-cents per dollar owed. No word of what unsecured creditors get (12-cents was rumour last week).