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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, weve 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 Canadas 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 Oct 25, 2014, 8:42 am
  #1066  
 
Join Date: Aug 2002
Location: YYZ
Programs: BA Gold/Marriott Gold/HH Diamond/IC Plat Amba
Posts: 6,001
Originally Posted by GJS - yow

We are now at more than 1000 posts in less than 2 days, and I have yet to see someone indicating they will drop their other FF program and move to AC (ha!).
Been quite some time since I've seen that. Moved to BA 9 years ago and have never looked back. A few years back I believe Aeroplan had some value to U.S. residents for non-AC redemptions.
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Old Oct 25, 2014, 8:47 am
  #1067  
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Programs: AC E50K (*G) WS Gold | SPG/Fairmont Plat Hilton/Hyatt Diamond Marriott Silver | National Exec Elite
Posts: 19,284
Originally Posted by LittleYHZ
I don't think they are worried.

1.) they have more information on this than you do. Its entirely possible that the SE "benefits" cost so much to provide that they actually don't make any money on you despite all of the revenue you generate. Which means the profit maximizing thing to do is get rid of the customer and the expenses, which would make profits increase...

2.) Westjet has more or less said AC continues to have almost the entire business market.

3.) Most business flyers don't fly enough to get status. EDC would be a great case of this. Most of their people fly 1-2 times a year usually international, which meets the government policy for paid J...

4.) Only once in 77 years has Air Canada made a normal net profit. (last year All of the others were based on their hocus pocus (EBITAR - Seriously? You have to rent the planes/places to operate to actually run the damn company...) And this year will be their second. They obviously know what they're doing, thats not the indication of someone flying by the seat of their pants.

Lastly - the changes to this program were obviously made to get rid of certain customer groups who were unprofitable. Spending 30K at AC, buying flex, flying J most of the time, having access to a concierge, drinking $50.00 worth of booze, and eating $25.00 worth of catering between the lounge and the plane... You get where I'm going...

Margins are so slim in this business, I can't recall which airline - but one of the more profitable ones said they made less than $5.00 a head last year on every ticket they sold. So if you're drinking $50.00 worth of booze they're probably loosing $45.00 on you... It actually makes business sense.
As I have said before, (and I do agree with you), only time will tell. Now your numbers did raise the hairs on my back. $50 worth of booze (well maybe I drink that much, but only with the prices they charge, not net cost), and my J meal certainly doesn't cost $25. I don't use MLL's (too crowded), and i'm pretty sure the meal on board is no where close to even $3.

As far as #2, I wonder if that will change and corporate fliers flock to WJ. I dunno, just saying.
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Old Oct 25, 2014, 8:48 am
  #1068  
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Originally Posted by LittleYHZ
I don't think they are worried.

1.) they have more information on this than you do. Its entirely possible that the SE "benefits" cost so much to provide that they actually don't make any money on you despite all of the revenue you generate. Which means the profit maximizing thing to do is get rid of the customer and the expenses, which would make profits increase...

2.) Westjet has more or less said AC continues to have almost the entire business market.

3.) Most business flyers don't fly enough to get status. EDC would be a great case of this. Most of their people fly 1-2 times a year usually international, which meets the government policy for paid J...

4.) Only once in 77 years has Air Canada made a normal net profit. (last year All of the others were based on their hocus pocus (EBITAR - Seriously? You have to rent the planes/places to operate to actually run the damn company...) And this year will be their second. They obviously know what they're doing, thats not the indication of someone flying by the seat of their pants.

Lastly - the changes to this program were obviously made to get rid of certain customer groups who were unprofitable. Spending 30K at AC, buying flex, flying J most of the time, having access to a concierge, drinking $50.00 worth of booze, and eating $25.00 worth of catering between the lounge and the plane... You get where I'm going...

Margins are so slim in this business, I can't recall which airline - but one of the more profitable ones said they made less than $5.00 a head last year on every ticket they sold. So if you're drinking $50.00 worth of booze they're probably loosing $45.00 on you... It actually makes business sense.
Huh? They seem to make plenty of money stuffing their sardine cans with very cheap Tango flyers. They seem to be doing not badly overcrowding their lounges with people flashing a credit card.

Who drinks $50 worth of booze at a lounge?
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Old Oct 25, 2014, 8:49 am
  #1069  
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Posts: 19,284
Originally Posted by Allvest
Huh? They seem to make plenty of money stuffing their sardine cans with very cheap Tango flyers. They seem to be doing not badly overcrowding their lounges with people flashing a credit card.

Who drinks $50 worth of booze at a lounge?
I think he means $50 worth of booze end to end. Ok maybe me. Guilty.
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Old Oct 25, 2014, 8:49 am
  #1070  
 
Join Date: Apr 2013
Location: YVR
Programs: Ice Cream Club, AC SE MM, Bonvoy Life Plat
Posts: 2,803
Originally Posted by Allvest
AC. I just got off your filthy plane in Frankfurt. The seats smell. The pods are full of crud and filth and a wipe with the wet towel leaves it grey. One assigned pod was defective.
+1

I'm glad you liked what I left behind. I'd say grooming is limited to safety requirements. Old boarding passes, used tissues, dried wine, etc... very common treasures to be found on AC metal, even after being at CYYZ overnight.

These changes are awesome for me. 2015 will be a AE point dump and some long overdue vacations. For work, F fares on United feel onpar with AC Flex, and while the product is inferior, it's still accruing AQM at 150% on United. I favour consistently inferior (ie, United) over inconsistently superior (ie, Air Canada)... At least I know I'll get what I purchased.

Notice I said "feel" onpar. That's all that's required to emotionally entice my irrational decision making, and in the end, that's what directs opex. Studies, models, excel jockeying, are a waste of time.

Drunkcargo, MBA, etc...
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Old Oct 25, 2014, 8:50 am
  #1071  
 
Join Date: Oct 2011
Location: YVR
Programs: AC S100K
Posts: 978
Originally Posted by RTW70
What will happen if UA retaliates and imposes the same flight minimums on its 10+ million active members? Those UA customers will have to stop flying AC. They will need to fly UA to keep their status.

Bad idea AC.
You're not wrong.

But AC kicked me in the teeth, and I'm a 100% AC metal flex or better flyer.

They'd need to be unfathomably stupid to protect UA's customers while annoying their own...
BlueMilk is offline  
Old Oct 25, 2014, 8:51 am
  #1072  
 
Join Date: May 2014
Programs: AC Elite 50K
Posts: 367
Originally Posted by hermanc
I'm SE and CX Silver.

CX has much better lounges and I get op-ups more often (~20% of my flights). Also get free extra legroom seats on all fares and extra cabin baggage allowance.

More importantly, they often go the extra mile even though I was only a lowly Silver. Earlier this year I was on a SIN-HKG CX flight that was delayed by 5 hr (plane went tech). Instead of making me wait, they put me on the next SQ flight (not OW) and saved my trip.
I love CX. Some of the new things I am doing business wise are going to really ramp up my Asia/South East Asia travel. I do truly not enjoy united longhaul, its probably the worst garbage trolling the sky across the pacific.

So its likely Ill end up there (not really doing things in HK moreso SIN and KUL and CTU, CAN) so it probably won't make sense to continue with AC. though I have some things to do in Latin America... So it could happen..
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Old Oct 25, 2014, 8:58 am
  #1073  
 
Join Date: May 2014
Programs: AC Elite 50K
Posts: 367
Originally Posted by superangrypenguin
I think he means $50 worth of booze end to end. Ok maybe me. Guilty.
Lots of people, and yeah end to end. :P

I have also seen people filling tin water bottles with wine in case the FA gets stingy. (totally against the rules - but it happens a lot...)

Also someone above mentioned the credit card folks. The difference is every time they go in Visa/AMEX gets a bill from AC for them being there. When we go in, its on AC.

Granted they've really changed nothing about the lounges. 35Ks who longhaul won't be able to access. But then again if you longhaul 3+ times a year you probably wouldnt be 35K... (well unless Tango but - T-2 week (effective) blackouts mean its usually not possible to always buy tango...)
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Old Oct 25, 2014, 8:59 am
  #1074  
 
Join Date: Mar 2006
Location: YQR
Programs: Nexus/GE, UA/MPG, Bonvoy Tit, LTP
Posts: 1,294
Originally Posted by alexbc
I guess one last thing that may push me away, probably BACK to MM, is the fact that the overall attitude of the two programs is completely different...

it really felt like they appreciated my business, AND I was only Silver*.......... the difference is, AC thinks *they are doing me a favor* by giving me perks for being their Frequent Flyer! .....and how overall AC thinks about their FFers... it sounds like we are just nuisance and COST, instead of a Frequent Flyer that time and time again brings business back to AC, and in most cases pays more equaling THOUSANDS a year to stay loyal to the program!

+1


Pretty much explains most things. I perceived that attitude a couple of years ago but sucked it up as a mere E50K, heard it loud and clear last year and abandoned ship at that time.

As a business owner I just cannot understand how repeatedly letting any customers, never mind some of your highest spenders, perceive that they are not valuable to you is both mind boggling and incredibly arrogant. Telling them that it costs you too much to provide a service that is quite frankly inferior to many of your competitors ( and more expensive) pushes credibility ( and I'm talking both FFP and their main service here).

I have said elsewhere I have no dog in this fight but jus can't stay away from watching the train wreck that AC's management of its best customers has increasingly become.
Fizzer is offline  
Old Oct 25, 2014, 9:00 am
  #1075  
 
Join Date: Apr 2011
Location: YYC
Programs: AC 50k 1MM, Marriott LT Titanium Elite
Posts: 3,411
Originally Posted by Wings100
The only way to salvage the program would be to do one of two things: alter the number of eupgrades given at the start of the year to be higher than 70 or change the threshold earning to start before 60K

I think that would appease most SE and keep them from fleeing
That and reduce the cost of using eUps domestically to something less than double. Unless you buy M, U, H fares, even a SE traveling domestically will only get to upgrade 6 flights! Out of probably 60+ that would be required to requalify for SE. Which is about half what UA grants if I understand their approach from other posts in this thread. And which is worse than the old paper cert days.

You know AC, I was prepared to pay for a J seat to SCL early next year--at $5000 for the return flight--because SE was worth something. Now its not. And now I wont.

I would also say the other impact is that I have really started to look at options to get to SE Asia and Africa (the two places I fly on reward tickets the most often). And I have realized that if I am not flying AC I am not actually paying that much. $3200 return in J to MNL on ANA? That isn't bad at all. (There is a truly spectacular resort south of MNL I have been to several times). $4400 to get to CMB or MLE in J, $3000 to get to BKK in J, $2600 to get to JNB in J. Frankly, the value of the reward tickets is just a lot lower than it used to be. Not like F is available anyway. And all those prices mean sitting on vastly better J product -- TK or CX or Etihad or whatever.

So W T F are you doing AC? Tell me what I am getting for my money except a chance to aerolotto to a Y seat with a little more legroom that probably will have been filled by the time I book and is dirty, uncomfortable, is on metal that is 20+ years old, with terrible food. And I will sit there on an oversold flight and get to look at an empty J cabin.

Concierges? Well maybe if there is a storm I just won't fly and I won't care about IRROPS because I won't be on your plane. Because I am pretty sure that I will be flying *a lot* less now than I was going to be a week ago. Reward miles? IKK is gutted, and business class travel on anybody but AC is starting to look pretty cheap. eUps are basically gone. Eviscerated. Decimated. So where is the value prop?
ridefar is online now  
Old Oct 25, 2014, 9:05 am
  #1076  
 
Join Date: Oct 2011
Location: YVR
Programs: AC S100K
Posts: 978
Originally Posted by LittleYHZ
4.) Only once in 77 years has Air Canada made a normal net profit. (last year All of the others were based on their hocus pocus (EBITAR - Seriously? You have to rent the planes/places to operate to actually run the damn company...) And this year will be their second. They obviously know what they're doing, thats not the indication of someone flying by the seat of their pants.
A broken clock is correct twice each day.

Given its record of achievement, the clock should be put in the chairman's office.
BlueMilk is offline  
Old Oct 25, 2014, 9:10 am
  #1077  
 
Join Date: May 2012
Location: Toronto
Programs: AC*SE100K 1MM, Little Lebowski Urban Achiever
Posts: 735
Originally Posted by Fizzer
+1


Pretty much explains most things. I perceived that attitude a couple of years ago but sucked it up as a mere E50K, heard it loud and clear last year and abandoned ship at that time.

As a business owner I just cannot understand how repeatedly letting any customers, never mind some of your highest spenders, perceive that they are not valuable to you is both mind boggling and incredibly arrogant. Telling them that it costs you too much to provide a service that is quite frankly inferior to many of your competitors ( and more expensive) pushes credibility ( and I'm talking both FFP and their main service here).

I have said elsewhere I have no dog in this fight but jus can't stay away from watching the train wreck that AC's management of its best customers has increasingly become.
Ben's quote about not being a charity is mind boggling. I spend over $100K per year, I buy between 2 and 4 Z/J a year, buy higher price Flex to get qualification miles and yes, I get a lot of upgrades on domestic and do two or three long haul upgrades. Not sure how that makes me a charity case (wrong thing to say Ben). What they don't get is upgrading YYZ to ATL is not a big deal to me, I do it because I can, but getting 2 or 3 international upgrades is the value of the program to me. I figure under the new regime, I will get one international upgrade, and maybe a couple useless domestic. If they are comparing to the US airlines, this is actually worse. They are trying to compare themselves to CX and SG. Wrong thing to do. In any case, I voted with my wallet last night, if others do the same, it could get interesting, but it will be hard to get me back other than to use the few eUG's I will have as MM.
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Old Oct 25, 2014, 9:10 am
  #1078  
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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 BlueMilk
A broken clock is correct twice each day.

Given its record of achievement, the clock should be put in the chairman's office.
I'd love to see, which I never will for sure, the % of revenue that Altitude members bring in. I suspect we think that number is high. I will guess that the real answer is low, otherwise AC wouldn't be doing this.
superangrypenguin is offline  
Old Oct 25, 2014, 9:12 am
  #1079  
 
Join Date: Dec 2009
Location: YFC
Programs: AC*SE100K; Marriott Titanium; NEXUS
Posts: 1,523
Originally Posted by Ben Lipsey
... Not trying to compare our hard products (not going to pretend we are equal), but I think it's a chicken-and-egg scenario. They get the revenues so they can improve. We are investing in the hard product, and we aim to improve the soft product as well; hopefully this will drive more revenue our way as customers take note.
Ben, I applaud you for being so upfront and for taking the time to explain things here. Much appreciated, and very helpful--it must be difficult on your end I'm sure.

After reading all of this and your comment above, I'd like to wage in as constructively as possible. If what I'm deciphering here is correct, the "build it and they will come" approach I think you're describing is a huge risk, especially if what folks are saying is true and there won't be many sampling the merchandise in the future either because they've gone elsewhere or because of limited access to the merchandise. The timing seems off, and the trust doesn't seem to be there to get folks to return on spec--just my observations, ones I hope are helpful.
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Old Oct 25, 2014, 9:12 am
  #1080  
 
Join Date: May 2014
Programs: AC Elite 50K
Posts: 367
Originally Posted by LockheedElectra
Ben's quote about not being a charity is mind boggling. I spend over $100K per year, I buy between 2 and 4 Z/J a year, buy higher price Flex to get qualification miles and yes, I get a lot of upgrades on domestic and do two or three long haul upgrades. Not sure how that makes me a charity case (wrong thing to say Ben). What they don't get is upgrading YYZ to ATL is not a big deal to me, I do it because I can, but getting 2 or 3 international upgrades is the value of the program to me. I figure under the new regime, I will get one international upgrade, and maybe a couple useless domestic. If they are comparing to the US airlines, this is actually worse. They are trying to compare themselves to CX and SG. Wrong thing to do. In any case, I voted with my wallet last night, if others do the same, it could get interesting, but it will be hard to get me back other than to use the few eUG's I will have as MM.
Have you considered its possible you are not a profitable customer... Spend = Revenue. But if the cost of servicing you is higher than 100K then its better for them not to have you at all.

The 500 mile minimum for example is gone because it was making certain customers unprofitable...
LittleYHZ is offline  


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