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Aeroplan notice for Quebec residents about class action lawsuit on fuel surcharges

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Aeroplan notice for Quebec residents about class action lawsuit on fuel surcharges

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Old May 15, 2019, 12:54 pm
  #16  
 
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Originally Posted by j2simpso
I think you miss the point of what I'm saying. Yes, AC would inevitably be forced to pay the airport improvement fee to the relevant authority. However, me as a consumer am not paying directly for that fee. AC isn't going up to me and saying, "Hey James, I see you're travelling to YSJ. They have a $25 airport fee, please fork over the money before you can board the flight." We could argue about semantics and back office accounting on the part of AC but I as the passenger am not paying directly for it. Where I fly to using the pass ultimately has 0 effect on how much I pay for the pass to begin with. I can choose to fly to airports that have tons of airport fees or could end up flying to airports with no fees at the end of the day it's going to cost me $579 to purchase those 4 credits regardless of where I go.

The point I'm getting at here is the question ultimately becomes who ends up paying for all these fees. AC seems to believe that it is the passenger who is responsible for paying for the fictional (i.e. fuel surcharge) and the real fees associated with their reward flights. Other frequent flyer programs take a different view when it comes to this. Ultimately it'll be up to the courts to interpret what consumer law has to say about this matter. IMHO the law firm is correct for attacking these additional fees the airlines pass on to consumers. It is open for debate who these costs should be borne onto. For instance, if I were to purchase a Lotto 6/49 ticket and win the jackpot, I would not have to pay any income taxes. The law is quite clear that for prizes consumers are not liable to pay taxes. Perhaps some of this reasoning logic applies to award flights in Canada. For all we know AC could be collecting taxes that were not meant to be collected in the first place!

Safe Travels,

James
I get what you're saying. When I first read your previous post, I was going to respond similarly to @canadiancow. I suspect the entire basis of the lawsuit has to do with the requirement of displaying "all inclusive" pricing which IIRC exists in Quebec; charging separate fees on top of mileage requirements could run afoul of regulations, but could also be allowable depending on how it was done. I guess we'll find out soon enough once the courts decide.

i wonder if the flight pass example could possibly be used against AC. Even tough once you book a ticket using your credit, the amount of AIF, surcharges, etc. get broken out of the credit cost, at the time of sale it is shown as part of the all-inclusive credit price, so there are examples of non-mileage fares where AC doesn't break out those fares separately at the time of sale. I'm not sure how AIF's, etc. work for unlimited flight passes.

On an unrelated note, this is meant as a piece of friendly advice. I think most frequent posters here have posted incorrect information at some time - I know I'm certainly guilty of it - but if you want to be given the benefit of the doubt and be taken more seriously, I suggest you cut out the nicknames such as Errorplan, rogue, etc. These, and several others, are tired and had pretty much stopped being used years ago, but that's just MHO. The quotes below are just from this thread.

Originally Posted by j2simpso
Spotted on errorPlan news:
Originally Posted by j2simpso
Here's to hoping that I receive some of the scam charges I paid ErrorPlan in the past!
Originally Posted by j2simpso
With respect to érrorPlan,
Originally Posted by j2simpso
I believe there are some people on this very forum who have taken on AC in court, won and still flew with them and maintained there érrorPlan status.
Originally Posted by j2simpso
They're actually tackling all those pesky fees érrorPlan attaches to tickets:
...
Would be interesting if a Francophone on FT could skim these documents and provide further insight beyond what érrorPlan is contractually obligated to show on their homepage.
Originally Posted by j2simpso
However, I think we can all agree that the bulk of what érrorPlan collects is incorrect.
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Old May 15, 2019, 1:45 pm
  #17  
 
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Why do you think that Air Canada isn't paying the airports their fees, @j2simpso?

They happen to do that as part of the all-in fee. Aircanada.com for non-FP flights quotes the full fee, too. If you drill into the price, you get the fare/fees/taxes breakdown.

For FP, they just don't show you the breakdown. AC assumes the risk you fly into super expensive airports and they have less of profit on some given PAX.
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Old May 15, 2019, 2:59 pm
  #18  
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Originally Posted by YEG USER
I suspect the entire basis of the lawsuit has to do with the requirement of displaying "all inclusive" pricing which IIRC exists in Quebec; charging separate fees on top of mileage requirements could run afoul of regulations, but could also be allowable depending on how it was done.
Advertising inclusive pricing is law of the land across the country.

https://www.otc-cta.gc.ca/eng/all-in...ce-advertising
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Old May 15, 2019, 3:56 pm
  #19  
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Originally Posted by tcook052
Advertising inclusive pricing is law of the land across the country.

https://www.otc-cta.gc.ca/eng/all-in...ce-advertising
Maybe that's the basis of the lawsuit, you search for flights and the list of results displays pricing in miles only. It's only after you click to select a flight on Aeroplan that you are shown the scam-charges, fees and taxes as additional.

If I understand correctly, all inclusive pricing regulations requires the inclusive price to be displayed at all times. Delta and United do it right because the amount of charges is displayed immediately next to the mileage price im the list of flight search results.

EDIT: however, rewards pricing seems to be excluded from the Canadian all inclusive pricing regulations (does Quebec have this exemption too?)
Originally Posted by https://www.otc-cta.gc.ca/eng/qa-all-inclusive-air-price-advertising
The Agency considers that the advertising regulations do not need to apply to:
  • Situations where there is a non-monetary component which forms part of the payment towards the purchase of an air service.
    • For example, this would include advertising the price of air services by loyalty reward programs, which require the redemption of points, earned earlier, in exchange for air services.

Last edited by MasterGeek; May 15, 2019 at 4:02 pm
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Old May 15, 2019, 3:58 pm
  #20  
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Originally Posted by RangerNS
Why do you think that Air Canada isn't paying the airports their fees, @j2simpso?

They happen to do that as part of the all-in fee. Aircanada.com for non-FP flights quotes the full fee, too. If you drill into the price, you get the fare/fees/taxes breakdown.

For FP, they just don't show you the breakdown. AC assumes the risk you fly into super expensive airports and they have less of profit on some given PAX.
Again, I agree that someone is paying ultimately paying those airport fees the only question is who ends up ultimately paying those fees. In the case of érrorPlan and booking a normal AC flight, it is the customer who foots the bill. However, for products like flight passes, it is AC that foots the bill. The argument then goes, if AC is capable of providing customers with a flat fee to travel between destinations why can't they do so for érrorPlan customers redeeming fixed reward travel.

Originally Posted by tcook052
Advertising inclusive pricing is law of the land across the country.

https://www.otc-cta.gc.ca/eng/all-in...ce-advertising
And that's part of the problem. If I go to Aeroplan site and book a flight I'll be shown a price that says something like 15,000 miles + tax. For instance, here's what Aeroplan says when I look for flights between YYZ and YUL:




How is that different from the bad old days when you'd see a flight that says $300 CAD but when you click through to book the price ends up being $700 with taxes and fees? In addition, Aeroplan quite proudly advertises their fixed points award booking chart:


Nowhere on the site does Aeroplan mention that the prices listed aren't the total cost and may be subject to additional taxes and fees.

An interesting question will be how AC ends up receding this situation. Perhaps they just jack up the number of miles required to redeem an award and dump all those taxes and fees. AC is quite capable of determining an approximate amount of miles to get eliminate taxes and fees, they already offer this option to members as an option (i.e. using points to cover both fare & taxes and fees):


One thing I should also point out is that for some routes (even those operated by AC), AC has made the determination that they'll be the ones who pay for the bulk of the taxes & fees. Consider the following AC flight between LAX and YYZ:


Now compare that to purchasing the same ticket online direct with AC:




As you can see AC is charging $7.50 in taxes and fees with the reward ticket and nearly $40 for the same ticket when flying revenue. Even when you remove the transportation tax which arguably you may not have to pay since your base fare was technically 0, you still end up paying $6.05 above what you'd pay with the reward ticket. I'm guessing the passenger facility charge is something AC would remit to another entity (i.e. the airport authority in question?). The point being is AC is quite comfortable covering some of the taxes and fees burden if you find the right route. Otherwise, they'll end up dumping scam charges (i.e. fuel surcharge a North American way of saying base fare) and fees they have to collect for other parties.

Safe Travels,

James
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Old May 15, 2019, 4:07 pm
  #21  
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Originally Posted by j2simpso
Again, I agree that someone is paying ultimately paying those airport fees the only question is who ends up ultimately paying those fees. In the case of érrorPlan and booking a normal AC flight, it is the customer who foots the bill. However, for products like flight passes, it is AC that foots the bill. The argument then goes, if AC is capable of providing customers with a flat fee to travel between destinations why can't they do so for érrorPlan customers redeeming fixed reward travel.



And that's part of the problem. If I go to Aeroplan site and book a flight I'll be shown a price that says something like 15,000 miles + tax. For instance, here's what Aeroplan says when I look for flights between YYZ and YUL:




How is that different from the bad old days when you'd see a flight that says $300 CAD but when you click through to book the price ends up being $700 with taxes and fees? In addition, Aeroplan quite proudly advertises their fixed points award booking chart:


Nowhere on the site does Aeroplan mention that the prices listed aren't the total cost and may be subject to additional taxes and fees.

An interesting question will be how AC ends up receding this situation. Perhaps they just jack up the number of miles required to redeem an award and dump all those taxes and fees. AC is quite capable of determining an approximate amount of miles to get eliminate taxes and fees, they already offer this option to members as an option (i.e. using points to cover both fare & taxes and fees):


One thing I should also point out is that for some routes (even those operated by AC), AC has made the determination that they'll be the ones who pay for the bulk of the taxes & fees. Consider the following AC flight between LAX and YYZ:


Now compare that to purchasing the same ticket online direct with AC:




As you can see AC is charging $7.50 in taxes and fees with the reward ticket and nearly $40 for the same ticket when flying revenue. Even when you remove the transportation tax which arguably you may not have to pay since your base fare was technically 0, you still end up paying $6.05 above what you'd pay with the reward ticket. I'm guessing the passenger facility charge is something AC would remit to another entity (i.e. the airport authority in question?). The point being is AC is quite comfortable covering some of the taxes and fees burden if you find the right route. Otherwise, they'll end up dumping scam charges (i.e. fuel surcharge a North American way of saying base fare) and fees they have to collect for other parties.

Safe Travels,

James
That difference in LAX to YYZ fees might be due to that fact that LAX or US regulations exempt rewards flights from most government/airport fees (flight originating from the US). While the Canadian authorities/airports don't offer such exemption (flight originating from Canada)
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Old May 15, 2019, 4:29 pm
  #22  
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Originally Posted by MasterGeek

That difference in LAX to YYZ fees might be due to that fact that LAX or US regulations exempt rewards flights from most government/airport fees (flight originating from the US). While the Canadian authorities/airports don't offer such exemption (flight originating from Canada)
Perhaps you are right here. The point I'm getting at though is how AC calculates these fees is completely arbitrary. In some cases they'll charge the passengers no taxes & fees (i.e. flight passes) whereas for others they'll happily collect a stack of cash even for the same flight. To illustrate this further, suppose I want to fly from YYZ to LAX. I see the following flight is offered as a fixed mile reward:



Wow are those taxes and fees eye watering. Let's take a look inside to see how AC calculates the taxes & fees on this one:



Now if I click the Market fare flight rewards tab I see the same flight is on offer, this time for slightly fewer miles. Clicking through I get the following quote:


Interestingly the taxes & fees here are nearly half that compared to if I were to book the same flight with a fixed miles award (in spite of it actually costing fewer miles). Jumping in to the breakdown I see:



No carrier surcharge nor US international transportation tax!

Now answer me this : why does the exact same flight on Aeroplan collect vastly different taxes & fees depending on if the ticket was fixed award and market fare? If you say because the ticket type is different you are completely missing the point here!

Safe Travels,

James
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Old May 15, 2019, 5:08 pm
  #23  
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Perhaps, when a carrier surcharge is charged, then the flight is no longer free in the eyes of US authorities and thus not exempt from some of their government/airport fees/taxes.

but I also believe some of those fees are unnecessarily collected and pocketed by Aeroplan and Air Canada
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Old May 15, 2019, 5:12 pm
  #24  
 
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Originally Posted by j2simpso
In some cases they'll charge the passengers no taxes & fees (i.e. flight passes) whereas for others they'll happily collect a stack of cash even for the same flight.
Incorrect. For flight passes they do charge taxes and fees - those charges are just built into the price of the ticket.

For example, if you want to buy a flight pass you need to specify your province of residence. Alberta charges GST, other provinces have HST. Provinces with HST have higher prices because the HST for that province is built into the price of the pass. Similarly, a portion of flight passes will be allocated to AIF's, etc. While those charges vary by origin/destination, AC has built an allowance for this into the price of the pass - they aren't simply swallowing the cost out of the goodness of their hearts. Pax are charged for taxes/fees - they just aren't broken out separately.

Originally Posted by j2simpso
No carrier surcharge nor US international transportation tax!

Now answer me this : why does the exact same flight on Aeroplan collect vastly different taxes & fees depending on if the ticket was fixed award and market fare? If you say because the ticket type is different you are completely missing the point here!
It is (partly) because of different ticket type, and no, I'm not missing the point (below is regarding the carrier surcharge, I can't speak to the US international transportation tax).

Within North America, AC does have a fuel surcharge, it's just that as of about 10 years ago they build it into the base fare on revenue tickets, so you don't see it as a separate charge. Market Fare tickets take a revenue ticket, apply a certain CPM cost to the base fare, and then charge cash for the balance of the taxes/surcharges/fees. Since a Market Fare flight bases the mileage cost on base fare, the Carrier Surcharge is being paid for by points within NA. On a fixed point reward, the surcharge that is built into the base fare on a revenue ticket is broken out and applied separately.

Look at an international ticket, the carrier surcharge on AC for a flight should be the same between revenue and market fare. Unfortunately I can't do a comparison for a fixed point reward - as an SE the carrier surcharge is waived so it doesn't show up for me.
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Old May 15, 2019, 6:15 pm
  #25  
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Originally Posted by YEG USER
Incorrect. For flight passes they do charge taxes and fees - those charges are just built into the price of the ticket.

For example, if you want to buy a flight pass you need to specify your province of residence. Alberta charges GST, other provinces have HST. Provinces with HST have higher prices because the HST for that province is built into the price of the pass. Similarly, a portion of flight passes will be allocated to AIF's, etc. While those charges vary by origin/destination, AC has built an allowance for this into the price of the pass - they aren't simply swallowing the cost out of the goodness of their hearts. Pax are charged for taxes/fees - they just aren't broken out separately.
Again, I think we're quibbling over semantics here. I agree that AC is no mother Teresa, they are building the expected cost of such fees into the final flight pass price they charge consumers. The point I'm trying to make here is that AC is capable of providing consumers with a flat fee (be it cash or points) to travel to different destinations. However, they choose to hide behind this opaque systems where costs are not known until you choose a specific flight and even then the taxes and fees can vary for the exact same flight depending on which type of award you choose!



Originally Posted by YEG USER
It is (partly) because of different ticket type, and no, I'm not missing the point (below is regarding the carrier surcharge, I can't speak to the US international transportation tax).

Within North America, AC does have a fuel surcharge, it's just that as of about 10 years ago they build it into the base fare on revenue tickets, so you don't see it as a separate charge. Market Fare tickets take a revenue ticket, apply a certain CPM cost to the base fare, and then charge cash for the balance of the taxes/surcharges/fees. Since a Market Fare flight bases the mileage cost on base fare, the Carrier Surcharge is being paid for by points within NA. On a fixed point reward, the surcharge that is built into the base fare on a revenue ticket is broken out and applied separately.

Look at an international ticket, the carrier surcharge on AC for a flight should be the same between revenue and market fare. Unfortunately I can't do a comparison for a fixed point reward - as an SE the carrier surcharge is waived so it doesn't show up for me.
As a counterpoint, I took the same flight and plugged it into UA's website to see what the ticket would end up costing:



As you can see UA charges the same amount as the lower market fare rate in spite of the fact that the ticket is a saver award and should in theory come out of the same bucket as those fixed milage awards on AC.

Your claim that carrier surcharge should be the same for fixed and market fares is also not true for international travel. Here's a flight I put together on Aeroplan going to Shanghai, China:

With a market fare I get the following result:


Breaking down the taxes & fees portion I see:



Meanwhile if I take try to book the same ticket, this time using fixed miles I get the following result:


With the following taxes & fees breakdown:



As you can see, even here with an entirely international long haul flight, there is still a carrier surcharge difference of $30 between market fare and fixed flight awards. While I couldn't find this difference for every international city pair I found, saying that such discrepancies do not occur between the two regimes for international travel is patently wrong.

Safe Travels,

James
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Old May 16, 2019, 5:00 am
  #26  
 
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Class Action Lawsuit Forcing Aeroplan to refund fuel surcharges on award flights

Class action Lawsuit is forcing Aeroplan to refund fuel surcharges on flights redeemed with miles.


IF YOU HAVE HAD TO PAY A FUEL SURCHARGE WHEN REDEEMING AEROPLAN MILES SINCE DECEMBER 15, 2011, and are a Quebec resident you are entitled to a full refund of charges with interest and $100 in punitive damages.


Wow this is great news, and will hopefully encourage Aeroplan to drop all its SCAM CHARGES completely, but what about the rest of us Canadians that don’t reside in Quebec?
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Old May 16, 2019, 5:07 am
  #27  
 
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I see it only covers domestic and US flights. I am not a Quebec resident, and most of the scam charges I have paid were for international flights, and only a few of them were on Air Canada. Obviously I sought to minimize them, but I still had to shell out a bit.

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Old May 16, 2019, 5:19 am
  #28  
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Originally Posted by tessy143
Class action Lawsuit is forcing Aeroplan to refund fuel surcharges on flights redeemed with miles.


IF YOU HAVE HAD TO PAY A FUEL SURCHARGE WHEN REDEEMING AEROPLAN MILES SINCE DECEMBER 15, 2011, and are a Quebec resident you are entitled to a full refund of charges with interest and $100 in punitive damages.


Wow this is great news, and will hopefully encourage Aeroplan to drop all its SCAM CHARGES completely, but what about the rest of us Canadians that don’t reside in Quebec?
I have to wonder what other program can be taken to task in Quebec for the YQ award travel charges. I have to assume that going after AC/Aeroplan was where the bigger money was involved. I wish it were the legislative/regulatory action that stopped these scam charges on travel, since that would provide a more comprehensive solution than having to hope for a winning fight of this kind of stuff in court.
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Old May 16, 2019, 9:52 am
  #29  
 
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I hope this extends to international scamcharges. I will say tuned
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Old May 16, 2019, 9:57 am
  #30  
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The rest of the world is rooting for you, Quebec. These scam charges need to go. I know Quebec law won't directly help me personally, but maybe you'll inspire other action around the world.

If you win here, do us a solid and go after "resort fees" next, okay? @:-)
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