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Important updates to Air Canada Altitude in 2015

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Old Nov 1, 2014, 10:31 am
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Last edit by: mendy7511
Important updates to Air Canada Altitude in 2015 23 October

This afternoon, we will be announcing changes to certain elements of Air Canada Altitude in 2015, as well as new features to the program.

Minimum Air Canada Flight Requirement
The Minimum Air Canada Flight Requirement to reach Altitude status for 2016 is increasing. To qualify for Altitude status in 2016, the following Minimum Air Canada Flight Requirement will need to be met:
• Prestige 25K: 12,500 AQM /12 AQS
• Elite 35K: 17,500 AQM /17 AQS
• Elite 50K: 25,000 AQM /25 AQS
• Elite 75K: 37,500 AQM / 37 AQS
• Super Elite 100K: 50,000 AQM / 47 AQS
The new MFR will not impact qualification for Altitude 2015.

500 Mile Minimum
For travel as of March 1, 2015, mileage accrual will no longer be rounded up to a 500 Mile minimum. Miles earned will be based on the distance flown and the fare option purchased for flights operated by Air Canada, Air Canada Express, Air Canada rouge and Star Alliance™ member airlines.

eUpgrades to Business Class
For eUpgrade requests made on or after March 1, 2015, the number of eUpgrade Credits required to upgrade is increasing. The number of eUpgrade Credits you can earn through the Threshold eUpgrades program is also changing. These changes were made following a thorough benchmarking of the upgrades practices of other major international airlines who often limit international upgrades solely to their highest membership tier, and often severely limit the number of upgrades a member may request over the course of a year.

We will also be expanding the “high Flex” eligibility category to include the “U” and “H” booking classes on the Domestic, Transborder and Sun markets, as well as the “U” booking class on International markets. The inclusion of these booking classes within the ‘higher Flex’ eligibility category actually decreases the number of credits required to upgrade flights on certain markets when compared to 2014.

For eUpgrade credit requirements as of March 1, 2015, visit: http://www.aircanada.com/en/aeroplan...e/updates.html

eUpgrades to Premium Economy
In early 2015, you will be able to access the comfort of Premium Economy using eUpgrade Credits, when upgrading from an eligible fare. eUpgrade Add-ons will not apply for these upgrades.

eUpgrade Nominees
Beginning March 1, 2015, Altitude Super Elite™ 100K members will be entitled to share their eUpgrade privileges with one eUpgrade Nominee. Members will maintain their ability to share their eUpgrade privileges with Travel Companions.

Priority Boarding
In early 2015, a new streamlined boarding process will be introduced to ensure that you get even more out of the Priority Boarding privilege.

Complimentary access to International Maple Leaf Lounges and Star Alliance Business Lounges
As lounge occupancy grows, many of our lounges are at capacity levels. And while we continue to invest in many lounge expansion projects, the reality is that in many locations, additional space is simply not available. At the same time, benchmarking shows us that our eligibility polices are still over-indexed as compared to many of our competitors. In particular, access to lounges is not a privilege offered by most international airlines at the 35,000 qualifying miles level. We have therefore modified our policy whereby Elite 35K members will continue to have access to Maple Leaf Lounges located in the domestic and trans-border departure zones, as well as those in Los Angeles and New York (LaGuardia). However access to International Maple Leaf Lounges or Star Alliance Business lounges will no longer be available as a Select Privilege. Instead, an option to purchase a Maple Leaf Club membership will be introduced with a 50% discount.

Priority Rewards
In order to maintain the integrity of the Priority Reward privilege for eligible Altitude members, Priority Rewards will be limited to ten (10) reservations (with up to 9 passengers each) per member per benefit period, beginning March 1, 2015. While a thorough analysis has indicated that this change will not impact the vast majority of members (over 95%), it will allow us to maintain a benefit which we know is widely appreciated.

Flight Rewards for Premium Economy
In early 2015, you will be able to redeem Aeroplan miles for seats in the Premium Economy cabin on Air Canada. Details will be coming soon.

Fuel Surcharge on Flight Rewards & Flight Reward change fee waivers
For reservations made as of March 1, 2015, the fuel surcharges on ClassicFlight rewards for travel within Canada and between Canada and the U.S. will be waived for all Altitude members (ie. 25K and higher) . This is applicable on flights operated by Air Canada, Air Canada Express and Air Canada rouge.

At the same time, Aeroplan Flight Reward change fee waivers for Super Elite 100K members will no longer be available for changes made on or after March 1, 2015. However, the fuel surcharges on ClassicFlight Rewards for travel between Canada and international destinations will be waived for Super Elite 100K members on flights operated by Air Canada, Air Canada Express and Air Canada rouge.

For a complete list of details regarding these changes, visit http://www.aircanada.com/en/aeroplan...e/updates.html

New REVISED REVISIONS to the Altitude Program (Oct 31 email)

=============
Last week, changes to Air Canada Altitude™ for 2015 were announced. As always, we’ve been listening to your feedback and will be adjusting certain elements of the program accordingly.

Threshold eUpgrades
The amount of eUpgrade Credits offered through the Threshold eUpgrade program will increase. As of 100,000 Altitude Qualifying Miles or 100 Altitude Qualifying Segments, 20 eUpgrade Credits will be awarded for every 40,000 AQM or 40 AQS flown.

eUpgrade Validity Date
eUpgrade Credits earned on or after November 7, 2014 will be valid until February 29, 2016.
Additionally, eUpgrade Credits earned on or after November 1, 2015 will be valid until February 28, 2017.

Mile Minimum
For travel from March 1, 2015 onwards, all Altitude members will earn a minimum of 250 miles on flights operated by Air Canada, Air Canada Express and Air Canada rouge as well as Star Alliance™ member airlines.

Minimum Air Canada Flight Requirement
For non-Canadian residents, the Minimum Air Canada Flight Requirement needed to reach Altitude status in 2016 will be 50% lower than the recently published Minimum Air Canada Flight Requirement.
These changes are representative of Air Canada’s focus on recognizing our most valued and important members. We remain committed to offering you one of the best frequent flyer programs in the industry.

Air Canada
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Important updates to Air Canada Altitude in 2015

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Old Mar 19, 2015, 7:07 am
  #3931  
 
Join Date: Apr 2011
Location: YXU
Programs: AC SE100K, National E/E, HH Diamond, IHG Diamond, MB, Avis PC
Posts: 973
Now I'm confused. Was the minimum mile benefit removed again? As it was removed, then brought back at 250 mile level. Is it gone again?
WildcatYXU is offline  
Old Mar 19, 2015, 7:15 am
  #3932  
 
Join Date: Oct 2003
Location: YYZ
Programs: UA1K2MM ACMME50 SQPPS HHDiamond Marriott Lifetime Titanium
Posts: 4,391
From 23 Jan-14th March I have flown 120K+ butt in the seat. Bulk of my International & transborder travel $$$$$ went to United & Star Alliance.
40K+ AQM on AC, 50% where awarded flying StarAlliance.

First time since we opened our office in Melbourne in 2003, not one trip in 2014 was on AC . In the past 3 months I have flown to Australia twice. All on United.
I have to bill my clients for travel. My clients are balking @ having to pay for insane lowest flex to SYD @ $4500.00. 2K+ than other NA upgradeable fares including DL!
For EWY#3, I decided to give my TALT & Transborder to AC . The Flex was 50% higher than United. My clients only reimbursed me equivalent to what United would have cost. 50% came out of my pocket.
I have no intentions in 2015 to pay my 50% more from my pocket so I can fly on AC.

Judging from my travel thus far, requalifying for my 2016 status will be earned by flying only 50% on AC metal. First since 1989!


I have spoken to business many of business associates; their employers balking @ insane flex fares. Many are force to buy T.
Canada's economy is resource based economy. With downturn in commodities, companies are revisiting their travel budget.

Yes, AC may want to extract as much revenue as they can.
There is a limit. IMHO, AC has crossed that limit with their insane Flex pricing.

As for AC not going the Revenue based FF Program; it already has! Flex fares are 100% higher than Tango. AC is now Revenue based FF Program.


Not only has AC gone revenue based FF program, it has gone one step further, minimum CPM; by only lowest flex being 100% higher than Tango.

As for flights being full. Yes, with passengers paying Tango.

Companies are taking hit with lower commodity prices. The next hit will be when the debit laden leisure travel who is now buying T is hit with rising interest rates & higher unemployment.

Only time will tell if the new Business model AC has adopted will translate into green bottom line!

Originally Posted by jaysona
I think all the changes are quite clear that AC knows how to manage their FF program - in such a way as to extract the maximum amount of recurring revenue from customers at a minimum cost to the corporation.
Originally Posted by canadiancow
From what I've seen, it will likely never be based on "spend" (revenue).I could see it turning into more of a CPM thing. Like how UA GS is allegedly/roughy $50k at 50cpm, I could see AC requiring a minimum CPM for status, since it's actually much more closely tied to profit than hitting a random spend threshold.
Originally Posted by Tractor Boy
Revenue based FF programs make so much more sense for an airline - I really don't understand why that option isn't prevalent. The excuses regarding IT limitations seem weak.
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Old Mar 19, 2015, 7:17 am
  #3933  
 
Join Date: Sep 2014
Location: sqrt(-united states of apologist)
Programs: *$ Green
Posts: 5,403
Originally Posted by rjp123
See this is what I mean...

If someone does this - versus 30 YTZ-YUL trips (@ ~$500 per) is the above customer worth SE100 versus the YTZ-YUL customer worth E50 (2 x 30 segments)???

30 @ 500 = $15k
5 @ $2600 = $13k

I think the Pi maximization on the above is the YTZ-YUL - not the YYZ-JNB.... So why does AC treat the JNP better than the YUL frequent traveler?

Edit: I think I could do 30 YTZ-YUL for closer to $10k if I booked in advance on Tango and which would still push 60 segments.
I think both most likely have very different profit structure, mainly coming from the cost associated with the frequent landing/takeoff of the YUL-YTZ route.

Also I though YUL YTZ was more around $300 R/T?
SparseFlyer is offline  
Old Mar 19, 2015, 7:40 am
  #3934  
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Join Date: Jun 2009
Location: YYZ
Programs: AC E50K (*G) WS Gold | SPG/Fairmont Plat Hilton/Hyatt Diamond Marriott Silver | National Exec Elite
Posts: 19,284
Originally Posted by yyzprincess

Companies are taking hit with lower commodity prices. The next hit will be when the debit laden leisure travel who is now buying T is hit with rising interest rates & higher unemployment.
To be fair to AC, they didn't predict the downturn. Now there are some FTers who know a lot about density of AC aircraft, will be interesting to read how commodity issues affect AC, as you mentioned in your post. The commodity downturn has in fact affected our business, although thankfully we can make up in other areas (financial institutions, government etc).

But when they announced the Altitude changes, it was far before the oil "crisis", and so far there's no indication that it has affected AC. The next few months will certainly be interesting for sure.
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Old Mar 19, 2015, 8:35 am
  #3935  
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Join Date: May 1998
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Posts: 6,222
Originally Posted by acysb87
Pulled this off the altitude site:

"Minimum Miles

QWhy is the 500 Minimum Miles benefit being removed?

R
The relationship of miles earned and flying behaviour is an important element of our program. On certain short-haul routes, this relationship is skewed when the number of miles earned is rounded up. This change will help to better align the program earning capacity with the distance flown (and fare family purchased)."

So I did a little math.

May 1st YSB/YYZ return May 8th all day flex fares = 671.50 for 500 q miles
I would need 95 segments or 31896.25 for SE on a local run

May 1st YYZ/LAX return May 8th all day flex fares = 928.54 for 4340 q miles
I would need 46+ segments or 21356.42 for SE on a trans border.

By my calculation I pay 1.34 for 1 qualifying mile towards status on a regional route
using same math, the YYZ/LAX route is .214 cents for 1 qualifying mile towards status on a trans border route.

IOW, I am required to pay 6 times more regionally to achieve AC status than a trans border flyer. We both get 2 "Q" segments r/t.

Using AC words, how is this "skewed" ?(change a few letters and real meaning may pop out.)

I have always maintained revenue is important and believe I have paid my way. I still believe the numbers are skewed

The alignment has hit a pot hole

Had some time to kill, hope the math is accurate
Standard two-facedness.

You're on a Tango fare - "I know you flew a lot of miles, but you paid so little. Therefore you should received reduced miles."

You're on a Flex fare - "I know you paid a lot of money, but you only flew 95 miles. Why should you receive 500 miles?"


Intentionally inconsistent.
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Old Mar 19, 2015, 8:59 am
  #3936  
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Originally Posted by KenHamer
Standard two-facedness.............
Intentionally inconsistent.

Sums up my stance on Q miles ^
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Old Mar 19, 2015, 11:04 am
  #3937  
 
Join Date: Oct 2003
Location: YYZ
Programs: UA1K2MM ACMME50 SQPPS HHDiamond Marriott Lifetime Titanium
Posts: 4,391
Originally Posted by hearna
One can also fly YYZ-FRA-JNB during the summer Z promo and earn 23,000 miles r/t for 2600$... Do it 5 times for 13k and you've locked in SE with well over 100k miles, and only 20 segments...
How many members even those who are on FT take advantage of South African J fares? Not many.
South Africa as a tourist destinations is no longer cheap.
Add to that with new minimum 50% AC flights to requalify 5 trips may not meet that condition.

South Africa is not a regular Business Destination for Canadian Business.

I cannot see a Elite or SE doing 5 trips @ to South Africa as mileage run.

I do Business in South Africa, even I would not do more than 2 a year.

If this fare was offered to Australia, Asia in addition to South Africa, I can see both Business traveller & leisure doing 5 trips.

Last edited by yyzprincess; Mar 19, 2015 at 11:36 am
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Old Mar 19, 2015, 11:42 am
  #3938  
 
Join Date: Mar 2006
Location: YYZ
Programs: AC*SE, AA Plat, SPG Plat, HH Diamond, PC Plat Ambassador, Hyatt Diamond, Fairmont Plat
Posts: 1,179
Originally Posted by KenHamer
Intentionally inconsistent.
I was actually quite surprised by AC's move to cut the 500 mile minimum. The reason I was surprised is that some of the routes that are being targeted are fiercely competitive, not only from other airlines but also from alternate modes of transportation (driving, train, ferry etc.). Who is going to pay for Flex fares on these routes now that the mileage has been halved and the e-upgrade requirements have been doubled? Porter, Westjet, Via Rail or driving all become much more viable options.

Total bonehead move in my books. Tango fares and mileage earning rates already took care of mileage "bleeding" on short-haul flights, so what they have really targeted is those people who are currently overpaying for Flex, Latitude or J fares on these routes. It usually isn't a good idea to target clients who are already overpaying for one of your products.

SG
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Old Mar 19, 2015, 11:48 am
  #3939  
 
Join Date: Mar 2006
Location: YYZ
Programs: AC*SE, AA Plat, SPG Plat, HH Diamond, PC Plat Ambassador, Hyatt Diamond, Fairmont Plat
Posts: 1,179
Originally Posted by yyzprincess

I cannot see a Elite or SE doing 5 trips @ to South Africa as mileage run.
This is especially true when it is easy enough to find NA routings in Z/P or Y that cost less than 10 cpm.

I would only take a cheap Z fare to SA if I needed to go there for business or wanted to go there for vacation.

SG
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Old Mar 19, 2015, 12:05 pm
  #3940  
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Originally Posted by Snow Goose
...... It usually isn't a good idea to target clients who are already overpaying for one of your products.

SG

Valid comment in my books ^
acysb87 is offline  
Old Mar 19, 2015, 1:18 pm
  #3941  
 
Join Date: Mar 2005
Location: YYJ/DXB/OGG
Programs: EK-Skywards Gold / Delta Gold Medallion/E50K 1MM
Posts: 753
Originally Posted by acysb87
Pulled this off the altitude site:

"Minimum Miles

QWhy is the 500 Minimum Miles benefit being removed?

R
The relationship of miles earned and flying behaviour is an important element of our program. On certain short-haul routes, this relationship is skewed when the number of miles earned is rounded up. This change will help to better align the program earning capacity with the distance flown (and fare family purchased)."

So I did a little math.

May 1st YSB/YYZ return May 8th all day flex fares = 671.50 for 500 q miles
I would need 95 segments or 31896.25 for SE on a local run

May 1st YYZ/LAX return May 8th all day flex fares = 928.54 for 4340 q miles
I would need 46+ segments or 21356.42 for SE on a trans border.

By my calculation I pay 1.34 for 1 qualifying mile towards status on a regional route
using same math, the YYZ/LAX route is .214 cents for 1 qualifying mile towards status on a trans border route.

IOW, I am required to pay 6 times more regionally to achieve AC status than a trans border flyer. We both get 2 "Q" segments r/t.

Using AC words, how is this "skewed" ?(change a few letters and real meaning may pop out.)

I have always maintained revenue is important and believe I have paid my way. I still believe the numbers are skewed

The alignment has hit a pot hole

Had some time to kill, hope the math is accurate
"Riddle me this Batman"

May 1st YSB/LAX return May 8th flex fares = $857.78 for 4840 q miles
I would need 40 segments or 17,155.60 for SE on a trans border.

$0.17/Q Mile.

Its all revenue management, you are paying for the connecting dude next to you to get him to his flight originating in YYZ.
AftOf245 is offline  
Old Mar 19, 2015, 1:43 pm
  #3942  
 
Join Date: Mar 2005
Location: YYJ/DXB/OGG
Programs: EK-Skywards Gold / Delta Gold Medallion/E50K 1MM
Posts: 753
Originally Posted by Snow Goose
I was actually quite surprised by AC's move to cut the 500 mile minimum. The reason I was surprised is that some of the routes that are being targeted are fiercely competitive, not only from other airlines but also from alternate modes of transportation (driving, train, ferry etc.). Who is going to pay for Flex fares on these routes now that the mileage has been halved and the e-upgrade requirements have been doubled? Porter, Westjet, Via Rail or driving all become much more viable options.

Total bonehead move in my books. Tango fares and mileage earning rates already took care of mileage "bleeding" on short-haul flights, so what they have really targeted is those people who are currently overpaying for Flex, Latitude or J fares on these routes. It usually isn't a good idea to target clients who are already overpaying for one of your products.

SG
Yes, I agree. I live in YYJ and I would regularly drive or taxi out to the airport and pay $240 for a flex fare, and I didn't need the miles I had to get hit upside the head to realize this. Thanks AC, I now walk 5 minutes to the Harbour and jump on Harbour Air, no security, no waiting, free shuttle to the terminal if needed and they give me 10% of my ticket cost toward future travel.

The thing i have noticed is the price of Air Canadas tickets have gone down considerably, now selling for about $169.00, and the amount of SE tags I see on Harbour Air has increased quite a bit. So if the revenue management guys are wondering whats happening to the RASM on this route you might want to start there. They probably don't know that the airport is a 50 minute drive from downtown.
AftOf245 is offline  
Old Mar 19, 2015, 1:52 pm
  #3943  
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Join Date: Feb 2000
Posts: 12,069
Originally Posted by AftOf245
"Riddle me this Batman"

May 1st YSB/LAX return May 8th flex fares = $857.78 for 4840 q miles
I would need 40 segments or 17,155.60 for SE on a trans border.

$0.17/Q Mile.

Its all revenue management, you are paying for the connecting dude next to you to get him to his flight originating in YYZ.
Thanks for helping me make a better argument,Robin
acysb87 is offline  
Old Mar 19, 2015, 2:05 pm
  #3944  
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Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,186
So now you're earning just 211 AE miles (assuming Flex fare) instead of 500, which means you're also being penalized in your RDMs, losing 289x2 (SE 100% benefit) each flight. Assume you do at least two returns a month on the YSB-YYZ run which means:

578x2=1,056x24=24K+ RDMs

I'd say you've really been screwed over by AC this year and for the future of your participation in the program. You'd certainly benefit if AC went full-fledged into a Revenue-based system ala UA/DL. So as it is, you're being punished twice over!
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Old Mar 19, 2015, 2:23 pm
  #3945  
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Join Date: Sep 1999
Location: Toronto, Ontario, Canada
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Posts: 38,186
Originally Posted by The Lev
acysb87, time for you to start driving that route rather than forking over $671.50 to AC.
Fly PD and take a cab to YYZ...or their shuttle to Union Station and the YYZExpress.
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