Aeroplan to get fewer seats on AC in 2020 it appears

Discussion in 'Air Canada | Aeroplan' started by londoncalling, Mar 16, 2017.  |  Print Topic

  1. londoncalling

    londoncalling Silver Member

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    https://www.bloomberg.com/news/arti...ef-sees-trump-as-a-stronger-ally-than-trudeau

    The CEO also hopes to improve Air Canada’s agreement with Aimia Inc., which administers the carrier’s Aeroplan loyalty program.

    “We are having good discussions,” he said. “There’s no doubt that Air Canada will make some substantial gains coming out of that.”

    Aimia is the biggest purchaser of seats on Air Canada, having paid the airline
    almost C$700 million ($525 million) in 2015, according to Neil Linsdell, an analyst at Industrial Alliance Securities. Air Canada, which buys miles to give its frequent fliers under Aeroplan, paid Aimia C$245 million the same year, he said.

    The deal expires in 2020, and Air Canada will likely reduce the percentage of seats that it holds for Aeroplan members, Linsdell said.
     
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  2. The Lev
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    The Lev Silver Member

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    Making even fewer seats available isn't likely to help endear members to the program. A bit of cutting off your nose to spite your face - unless they favour Altitude members with preferred access to seats (IKK lighter for lower tiers).

    In any event, looks like the program will get less attractive and potentially result in a significant devaluation of our miles.

    Can't wait for the details to emerge in the coming years.
     
  3. londoncalling

    londoncalling Silver Member

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    With AC increasingly becoming a long haul carrier to Asia, North Africa, India and more flights to Australia the demand for paid J seats will only grow. As well they sell J seats to Americans at lower prices to attract them flying through AC's major hubs. One must also admit that paying around $2K for a 16 hour flight and getting a free UG is a pretty damn good deal and they know just how good it is which is why they have started a auction system along with several other promos to get more revenue for the front cabin.
     
  4. The Lev
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    The Lev Silver Member

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    Assuming that is the case, it makes you wonder why AC has been reducing the already low proportion of J seats on their aircraft.

    Regardless, any way you cut it, sounds like Aeroplan and Altitude are going to continue to be "enhanced" to AC's advantage.
     
  5. londoncalling

    londoncalling Silver Member

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    I would suggest that in any strategic thinking you have in your Company you look to "enhance" profits. AC does the same thing to try and wring more money out of you cheapskates. LOL.
    In terms of reduced J seats, very few people actually buy the full J/Z product and others get serious discounts (EG: US PAX flying through major AC hubs) except for the Asian flights. UG's are not revenue enhancers except for the loyalty but they do not help each flight make a decent profit. So, if they can squeeze more Y seats in back they do so. At least the are all paid for.
     
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  6. mevlannen
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    mevlannen Gold Member

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    Londoncalling, I`d certainly agree with the recognition of the company`s profit motive (although, thus far, safety still does seem to come before profit). Also recognise that most purchasers would prefer to acquire J seats at a discount to full walk-up price.

    Being based in Canada, I`ve never had the chance to test the notion that USian pax would be offered a lower price for J connections through AC`s hub cities. I do, however, appreciate the existence of Z-fares and generally enjoy the freedom to schedule transcons and transoceans four months out (which renders the Z fares into grasping range).

    I would love to have been a bird on the windowsill, listening to the negotiations betwixt AC and Aimia. If that relationship were to be throttled in year-2020 and thereafter, I suppose that at least Aimia would save substantial money on staff costs (although how substantial, given long call-queue times, is anyone`s guess).
     
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