Randy
Welcome to yet another session of FlyerTalk Live!, our last live session for 2003. And we end the year with two special gueats: Rupert Duchesne (President, Air Canada Aeroplan) and Montie Brewer (Executive VP, Commercial, Air Canada). Rupert is a repeat guest and Montie is new to FlyerTalk coming directly here from Air Canada. Welcome back Rupert and welcome to FlyerTalk Montie.

Rupert Duchesne
Thanks, we're glad to be here

Randy
I understand that you both flew in from Toronto just a few hours ago to do this chat. Thanks.

Randy
Recently, Aeroplan announced a few changes for 2004 for their elite program and I'm sure some of the questions tonight will come up about that. Considering the landscape for airlines today, Air Canada included, I was very pleased to see the introduction of personalized benefits. Honestly, that has been talked about in the industry for quite a few years and it looks like Aeroplan is the first in the world to introduce this. I like the standard that I hope others will learn and introduce from. But along with all you, I'd like to hear what our guests have to say, so without further ado, welcome and on with the questions

Mikel at WebFlyer
This question was submitted earlier by pdjcrawford: During your chat appearance in April, in response to a question pertaining to on-line functionality, you responded that of "open jaws, most Star flights, stopovers, Tango ZIP, changes and xcelns etc.", "Most, if not all of these will be in place by Jan, 2004". As we quickly approach this date, could you kindly provide an update on these features? Thanks.

Rupert Duchesne
We are continuing with updates although it will be mid-2004 before some of the changes come on-line. In 2003 we have done a number of upgrades to functionality and user experience, including the booking of Zip flights, real-time access to statements, immediate e.mail delivery of PINs. We have aggressive plans to continue to improve functionality this year and beyond.

Rupert Duchesne
Next pls!

ferrari
Rupert....Is the instant KK for SE's going to be removed next year? or changed is some way?..

Rupert Duchesne
No plans to change - it's a much valued benefit that has been in place since the inception of SE TQ

airbust
With the expansion of Aeroplan as a loyalty program and the introduction of new partners and benefits, will the cost/availability to use Aeroplan Miles for travel on Star Alliance partners go up or down in the future?

Montie Brewer
We do not expect Star Alliance to make any changes in that regard.

Mikel at WebFlyer
This question was submitted earlier by pdjcrawford: At the time of this writing, it has been more than 6 months since the selection of American Express as an Aeroplan partner was announced in the media, and as of yet no details of the partnership have been made public. Understanding that Aeroplan represents only half of the partnership, could you kindly provide an estimate as to when the arrangement will finally take effect? Thanks.

Rupert Duchesne
The Amex deal for co-brand charge cards and Membership Rewards particpation was approved by Judge Farley last Wednesday Dec 10th and following the customary appeal periods we would expect an announcement shortly therafter. TQ

CanuckBubba
As a follow up to Ferrari's question - any plans for the return of instant KK for E without the double mileage premium currently in place?

Montie Brewer
No plans to reintroduce instant KK for E, but we are looking at ways to allow all members greater access to reward seats in 2004. TQ

Mikel at WebFlyer
This question was submitted earlier by airbus320: Is Aeroplan a frequent flyer program or a frequent shopper program?

Rupert Duchesne
It is both! Our frequent flyers have told us that they want more ways to accumulate through financial partners and retailers as well as by flying. They also want more ways to redeem, hence the great Future Shop redemption opportunities. Only a very small minority of flyers do not support this move. TQ

Braindrain
Rupert, recently the qualifying levels for frequent flyer tiers were lowered. Will there be "compensation" for people who qualified for Prestige, Elite, or SE at the full levels? Perhaps a deposit of the "difference" of the normal and reduced levels for 2004?

Rupert Duchesne
This year was an exceptional year and we recognized that many were unable to travel as much as intended. For those of you who qualified at the published levels, you are continuously rewarded through the threshold program. In the absence of any major market condition changes we expect the published levels for 2005 qualification to prevail. We hope that those of you who have been able to fly will be kind to those who've not due SARS etc! TQ

Mikel at WebFlyer
This question was submitted earlier by Prestige: First, thanks for introducing this new concept of choosing your own package for top tier members. I think this a la carte benefits concept is very innovative. My question is regarding Q miles and segments for domestic travelers like myself. Achieving status mainly on domestic travel is becoming increasingly difficult due to the 50% Q miles on some low fares and the 0 Q miles policy on the new Tango fares. What bothers me is that someone who takes ONE trip per year to Asia for less than $1500 will get enough Q miles for Prestige status (and may not even need it) while a frequent short-haul customer will spend much more and barely make it on segments. I often make status on segments but never on miles. Are there any plans to reduce the required segments for Prestige (and other tiers) OR give status miles on Tango fares? Thanks!

Rupert Duchesne
No current plans re Tango, although you do get regular Miles for buying Tango at aircanada.com. In addition, we did reduce the number of segments needed for Prestige from 30 to 25. TQ

ArnieByJune
Please speak to disenfranchised Aeroplan members such as myself who have never been able to redeem Aeroplan miles (member since '93) for seats due to lack of availability - What's going to fix this problem and when?

Rupert Duchesne
We had 1.4 million round-trip redemptions in 2003 and we make 10% of AC's seats available on every route every month. The last comparable year was 2002 where AC and AA used the most seats for FF redemption - I think that we are competitive. As Montie said, we are looking for ways to increase availability in 2004 to maintain our lead in this regard. TQ

Mikel at WebFlyer
This question was submitted earlier by beaubo: Why did Aeroplan wait until 20 days left in the year before announcing next year's changes. Isn't it reasonable for us to expect such changes to be announced MID-YEAR, so we would have the lead time to determine whether the changes merited our continued loyalty or whether we should hustle and earn starus and miles in other, more deserving programs. BTW, this question applies to ALL the airlines that wait until the last minute about program changes.

Rupert Duchesne
Last year we did notify earlier but this has been an exceptional year, quite aside from AC's new simplified fare structure. The success of this meant adapting the program late in the year. We are comfortable to follow industry practice in this regard. Furthermore, the 2004 program is innovative and has received good support from members and the press. TQ

Ace Cdn
are you looking at adopting a process similiar to AAdvantage where even a basic member can get a inventory overide if they pay with more points?

Rupert Duchesne
This is one thing that we're considering. TQ

100000miler
Rupert, will the existing 2003 certs be useable on the new 2004 rules in Jan and Feb until their expiry? This is important as AC cannot deliver the new ones until as late as March 04.

Rupert Duchesne
Yes TQ

Mikel at WebFlyer
This question was submitted earlier by Sydney Racquelle: Why are 2004 Prestige members (who choose Experience number III) being offered an extremely generous one-time 30% discount on AC, yet Elite and Super Elite members are not eligible for this discount??

Montie Brewer
Super Elite and Elite members can choose from a number of benefits, including more generous upgrades and access to Maple Leaf Lounges. The travel discount offer to Prestige members, who tend to travel less than other members, was designed to stimulate their travel behaviour. We believe that the benefit packages are right-sized for the tier levels. TQ

PointWeasel
Why are Aeroplan reward bookings fees in place for the higher tier members?

Rupert Duchesne
Because higher tier members benefit equally from the enhancements that we're rolling into the program in terms of earn options, new redemptions, and web functionality. TQ

makin'miles
Rupert, thanks so much for making it back here. Montie, hello! Anyway, I am just wondering if the MLL will be greatly expanded in anyway? AC began charging for SE and E guests because the lounges were too full. Now, however, they are open to SEs, Es, Priority Pass members, MLL members, and now P members will have up to four passes each. It seems that some expansion will be needed beyond the YYZ hub?

Rupert Duchesne
Re 2003 certs - they can be used at face value (2003 rules) until Feb 28th 2004 - just to clarify. Montie's typing the other answer!

Montie Brewer
We will be opening a new expanded MLL in the new terminal at YYZ early this spring. We are also assessing requirements across the system, however we forecasted 2004 usage levels at roughly that of 2003. TQ

Mikel at WebFlyer
This question was submitted earlier by freeflyer: I'm still upset that Aeroplan members are getting dinged with a $25 telephone booking fee everytime they want a reward ticket on a Star Alliance carrier or on AC when using an open-jaw or stop-over. How can you justify charging people 25 bucks for these reward tickets we would like to book on your website but cannot?

Rupert Duchesne
The $25 will pay for us to develop the functionality you want on the website. Tough economic times but most members agree that the site and the programme have got better and better over the last few years. TQ

Simon
Rupert: Are there any plans to modify earning levels for Q miles on transborder routes in 2004, either before or after the new fare structure on April 1?

Montie Brewer
First of all, it is not April the first. Secondly, we are looking at bringing the successful simplified domestic fare structure to the transborder markets. If and when we do, we will look at adjusting the earning levels to reflect the value of the fares paid. TQ

BlondeBomber
C class availability has been a big problem since discount business class was introduced in Canada this year. C class is used for upgrades, round the world fares, AND discount business. This makes it tough to book RTW through Canada on AC and to get upgrades. Could you please comment on how AC intends to change the fare buckets to segregate these and make buying discount business easier, confirming upgrades in Canada fairer and RTW trips easier to book with AC metal. (also submitted prior chat)

Montie Brewer
The booking class used to confirm upgrades (C class), was temporarily reduced in September and October 2003, as Air Canada introduced its new fare pricing structure on the Web. Since November 2003, adjustments have been made to reinstate inventory to previous levels. Overall, C class represents approximately 50 per cent of the Executive Class cabin, so there are ample seats available for the upgrade program. We do not intend to segregate the fare buckets, the industry is moving to simplified not more complex fare structures. TQ

Mikel at WebFlyer
This question was submitted earlier by Shareholder: This is the third year Aeroplan has reduced the qualifying miles for status at the end of the year. three years ago we received no notice this was done. last year a little bit of notice. And this year, I think we have been informed, but the information on the web site is confusing. Is the 85K for SE for those earning that number of miles this year, to hold the status next year. And is this now the permament requirements for next year to obtain status in 2005/6?

Rupert Duchesne
No, we'd expect the 100K level to remain - we've just had rather an unusual sequence of years in the industry! TQ

Howard
Will the new transborder fare structure be similar to the domestic fare structure, including (a) discounted C fares and (b) Latitude fares that are (significantly) more expensive than currently upgradable V fares? We'd like to understand the benefits you're offering in 2004.

Montie Brewer
The lawyers have counseled me to never comment on future fare levels!!!! TQ

Mikel at WebFlyer
This question was submitted earlier by cattle: With upgrades being such a big issue for SE/E's why have you basically eliminated our ability to upgrade using SWU's unless we buy full fare or Latitudes when many cabins this year are clearly not full even after upgrades are completed?

Randy
A lot of questions tonight. Thanks members and thanks again to Aeroplan and Air Canada...

Rupert Duchesne
Load factors in the fall have actually been comparable in both cabins to 2002 and we'd expect that to be the case or more so in 2004 especially with the new "C" fare - the web business fare. As we've said, upgradability reflects fare paid but we have introduced the new special system-wide upgrades which are usuable from most low fares. TQ

ferrari
Rupert...Are there any plans to bring in new partners to star A, especially in the badly served routes like Africa and south asia...we would loved to see Emirates..

Montie Brewer
Star has just brought in LOT and Asiana this last year. We are looking forward to bringing USAirways onboard next year. These three carriers bring a great more destinations and earning opportunities. We hope to bring a Chinese carrier to sometime in the near future. Enjoy! TQ

Mikel at WebFlyer
This question was submitted earlier by beaubo: CAN WE EXPECT A STABILIZATION IN AEROPLAN WHEREBY THE OVERALL PROGRAM (STATUS QUALIFICATION LEVELS, AWARD REDEMPTION LEVELS, QUANTITY AND QUALITY OF UPGRADE CERTS,BONUS MILES, ETC.) WILL NOT GET BETTER OR WORSE OVER THE NEXT 3 YEARS, SO WE CAN TRY AND PLAN OUR STATUS AND AWARD STRATEGY WITH SOME RATIONALITY AND CERTAINTY?

Rupert Duchesne
No. Programs evolve and so does the industry. We also listen to customer feedback and develop accordingly. You as the member have to decide if we're meeting your needs. No change would have meant no benefit choices, no Future Shop, no aeroplan.com.....TQ

Mikel at WebFlyer
This question was submitted earlier by jimmac: Can you please explain why you provide extra rewards (access to SE) to people who flew less in 2003 while you simultaneously devalue the rewards of your most loyal customers who reached the original SE threshold by increasing the competition they face for C class seats on upgrades? Why do you send this negative message to your best customers?

Rupert Duchesne
We've answered this but we feel that it is an important gesture in a difficult year. The total membership will remain constant which is exactly why we set the levels at 15, 30 and 85 TQ

FlyByNight
The clarification on the 2003 certs has confused me: can 2003 certs be used according to 2004 rules until Feb 28, 2004?

Rupert Duchesne
No, sorry for the confusion. TQ

Mikel at WebFlyer
This question was submitted earlier by Empress: Rupert, given that Aeroplan has lowered the qualification levels as a gesture of goodwill for those who did not fly much due to the Iraq war/CCAA/SARS; shouldn't Aeroplan also reward those who flew the required miles (i.e. 100K for S/E) with something extra for being loyal to the program during tough times when Aeroplan claims that many did not fly as much? Simple things such as extra Special Systemwides or bonus status miles would be really appreciated and should be considered (As UA will do in 2004 for the members who flew the pre-lowered required miles in 2003). I feel this is fair to those members given that the qualification levels have been lowered for the past few years and also shows Aeroplan's commitment that they value their business and they not only worry about those who didn't fly enough.

Rupert Duchesne
The threshold program responds to this. Please be generous to those members who could not travel for genuine reasons. TQ

767300ER
Montie, can we expect an announcement in 2003 regarding the fleet renewal?

Montie Brewer
Yes, we hope to get this out before Santa comes. Look under your tree. You might need a big tree. TQ

Mikel at WebFlyer
This question was submitted earlier by WhyFly: Super Elites's get almost the same upgrade certs as an Elite member, but have to fly 65,000 miles more. And they get the same number of all important Super Upgrade certs. Why would anyone try to be Super Elite next year, for the same certs?

Rupert Duchesne
As a Super Elite you do have a unique set of benefits: richer Experience package options as well front of the line confirmation booking windows, instant KK and Concierge Service. We believe that the overall Super Elite benefits remain competitive and, as you know, we are one of the few in North America to offer complimentary lounge access for our top tiers. Let's take two more questions TQ

Biggles
Why not allow passengers paying for a full "y" through a company travel agent. Instant upgrade to C class?

Montie Brewer
The new web C fare through the web are at about the same level as the full Y, and your agent can book it through the Travel Agent website. Great idea. TQ

Mikel at WebFlyer
This question was submitted earlier by Cloud Lounger: Mr. Duchesne, Thanks for letting us know of AP changes before the benefit year begins. I also congratulate you on the creative approach of providing us with choices of packages. My question is: Given that some of AC's webfares are only upgradeable starting now (U and A), I hope that the 2003 upgrade certificates that we have on hand (alot of them by the way) can be used in the first two months of 2004 under the new rules. i.e Y/M upgradeable to Europe at time of purchase. Thank you

Rupert Duchesne
No unfortunately not. 2003 are good with their rules until 28 Feb. 2004 are good now under their rules. There's no transferability, but the only exception is that 2003 transborder booking classes are eligible on 2004 certs until March 31st, 2004. The fact that people have unused certs is one of the main reasons we're introduced choice to tailor what you want to what you get. TQ

Randy
And again, a huge thank you. When Aeroplan was getting ready to announce their changes for 2004, they called FlyerTalk to see when we they could get up online to answer questions - that is an unbelievable positive gesture. Honestly - not every program is that sincere toward meeting with their members in a venue like this.

Randy
Happy Holidays to All, and to all a Good Night. Rupert and Monti - only the best to you from all the members of FlyerTalk.

Rupert Duchesne
Randy, we always enjoy the pressure and the chat; especially reading what your chatters say after the fact! TQ

Randy
There is pressure on FlyerTalk but that has not prevented you from being a great guest.

Randy
So, let's move to general chat and see what everyone is talking about....

Montie Brewer
Thanks Randy, hope you all have happy holidays and enjoy your journeys on Air Canada and the Star Alliance. TQ