I Booked The Cheapest Airline In Canada (And Paid With Aeroplan Points)

Canadian startup low cost carriers have a checkered history in Canada. The first low cost Canadian carrier I flew was Canada 3000, which went out of business in 2001.

canada 3000 defunct airline logo
Canada 3000’s seating configuration was so dense that they might have been trying to fit 3,000 people on the plane

Many other attempts at low cost carriers have failed: Zip, Zoom, and Jetsgo. Even Air Canada couldn’t make the concept work, and retired their Tango subsidiary (although their cheapest economy class fares are still called “Tango”). The low cost carrier concept stubbornly keeps failing over and over in Canada, which is hardly surprising given that airport operating costs are some of the highest in the world (a report to the Canadian Senate in 2012 detailed myriad structural issues, and essentially nothing has been done or fixed since–in fact, operating costs have only gotten higher).

Nevertheless, startup airlines in Canada continue to open, fly for awhile, and then abruptly fail (usually leaving passengers stranded). The shakiest of these is currently Flair, which apparently didn’t have the money to take delivery of 11 new Boeing jets it had ordered, and which recently had four of its jets seized for non-payment of leasing fees. The 20% on-time performance rating for their Abbotsford-Calgary route is fairly representative.

So, did I book with Flair? Of course not! They weren’t the cheapest, and this article is about the cheapest airline in Canada. As it turns out, that’s tiny airline startup Lynx Air, which is currently flying a fleet of six aircraft. I had never heard of Lynx, but they popped up when I ran a search on an online booking site. I instead booked directly with the airline on their sketchy-looking Web site, and got back an email confirmation that looked like a phishing scam:

sketchy looking email

However, clicking on the attachment revealed an itinerary that looked like it was from circa 2003, using a random assortment of fonts that looked like a ransom note, and confirming that I had a roundtrip ticket to Calgary over March break weekend for CAD $168.00.

lynx air itinerary and logo

This is virtually unheard of; other airlines were charging well over $300 each way. I’m not sure whether Lynx forgot that it was a school holiday or what, but I really wasn’t going to question it.

The fare breakdown was as follows:

fare breakdown

That’s right, roughly half of the roundtrip airfare went to airport fees, and that’s before the airline’s share of the operating costs. Lynx would definitely be losing money on me.

“But wait,” you might say, “the headline says you paid with Aeroplan points. How did that work?” Well, I have the Chase Aeroplan credit card. A few months ago, Chase was offering a 30% bonus to transfer points into Aeroplan, and if you have the credit card and transfer 50,000 Chase Ultimate Rewards points or more into Aeroplan, you got another 10% bonus on top of it. So I ended up with 70,000 points in Aeroplan. Well, in February, Chase decided to be exceptionally generous and started a promotion. You can now redeem Aeroplan points towards travel purchases (literally anything that codes as travel) at 1.25 cents per point. This meant that I could effectively spend the Ultimate Rewards points I transferred for 1.75 cents per point in value.

And that’s exactly what I did, as soon as the charge posted to my Chase Aeroplan credit card account:

I went ahead and paid for my airport parking with Aeroplan points, too–why not?

Was this a good deal? I think so. Sure, it’s not as high as the realistic ceiling for Aeroplan points. It is, however, just below the weighted average for Aeroplan points, and in Ultimate Rewards terms, it’s above the weighted average for Chase Ultimate Rewards points. And I had specific dates and times of travel that I needed (since I was going to Calgary for an event) so I had to opt for what was actually available.

More importantly, this fare was cheaper than alternatives and would otherwise be unattainable with points. While you can theoretically use Chase points at 1.25 cents per point on their travel portal, that only works for airlines that list their fares with Chase. Obscure low cost carriers like these don’t show up, meaning you’re only shown more expensive options.

9,895 points for a roundtrip flight is virtually unheard of

Less than 5,000 points each way, with no money out of pocket, is an incredibly good outcome for redeeming points on a short-haul flight (especially on a flight like Vancouver to Calgary that is under 500 miles, but over 11 hours of dangerous mountain driving). And remember, I got those points with a 40% bonus. To me, this was an absolute “no brainer” of a redemption.

So how was the flight? Stay tuned for the next installment!

SkyMiles Savings From Canada

When Delta did away with their award charts earlier this year, most people assumed that no good could come of this and it would effectively lead to a Southwest-style award chart that is based on the price of the ticket. In my mind that wouldn’t necessarily be a bad thing, because it makes award pricing more predictable and you can more accurately predict what your miles are worth. However, it would also take away the “sweet spots” which provide some of the best value in frequent flier programs.

Instead, I have found the results to be decidedly mixed. Award pricing for premium cabins is often just silly, and it’s never particularly good. However, when flying economy class, there are now some incredible sweet spots in the Delta award chart yielding value of over 3 cents per mile. This seems to be based on the available inventory on the flight versus the the price of the flight, which is an important distinction. Delta may want to maintain high cash fares in a market, but will let SkyMiles seats go cheaply if they’ll likely otherwise go unsold.

Here’s an example of a flight I just booked from Vancouver to JFK. Why Vancouver? I couldn’t find any “saver” award availability on any airline from Seattle, and Vancouver is just a short drive away. A nonstop coast-to-coast flight, in the peak of the summer travel season, is an astonishingly low 9,500 SkyMiles:

Coast to coast... for an astonishingly low 9,500 SkyMiles

Coast to coast… for just 9,500 SkyMiles

There is a relatively high cash fare, ringing up at nearly $300, for the very same flight:

After conversion, the cheapest fare is nearly USD $300.

After conversion, the cheapest fare is nearly USD $300.

This was an absolute no-brainer. Even with the hassle of driving from Seattle to Vancouver to catch the flight, it was an absolute steal. The value rang up at over 3 cents per mile! While you can theoretically get higher value booking premium cabins on certain international flights, most of these are fares that nobody would actually buy. But if you want to get from the West Coast to New York this summer, it’s going to cost you a minimum of $500 roundtrip in actual, real money. So this isn’t a theoretical value, it’s an actual one and I consider it a very good result.

The return flight was a slightly more complicated decision. The latest Delta flight out from New York to Vancouver leaves just before 7:00PM. Catching it will mean that I’ll have to leave the conference I am attending about two hours before it ends. And it’s not as good a deal: it costs 15,500 miles for a USD $310 fare. This is still a redemption value of 2 cents per mile, though–and overall pretty good. The total roundtrip price was 25,000 miles, which worked out to an overall redemption value of about 2.4 cents per mile when factoring in what comparable flights from Seattle would have cost and subtracting the taxes I had to pay out of cost. The usual value of Delta miles is about 1.2 cents per mile, so this is a very solid redemption.

However, Cathay Pacific also operates a flight from New York to Vancouver, which provides an intriguing option. It’s a Fifth Freedom flight on an internationally configured widebody aircraft, and it leaves a little later–just after 9pm. And I could have redeemed 17,500 Alaska Airlines Mileage Plan miles to take it. However, it would have also cost me an additional $27.50 in call center and partner airline ticketing fees (Cathay Pacific awards aren’t bookable online), and I’d have landed in Vancouver at 12:10am facing a long, tiring drive to Seattle after that. Additionally, Cathay Pacific doesn’t allow advance seat selection. The last time I took this flight, I was stuck in a middle seat on a bulkhead row next to an overweight woman and it wasn’t even a little bit fun. The flight was available for a cash fare of about $280, but subtracting out the fees and taxes, and I’d be getting less than $250 of value for 17,500 miles. That’s a value of 1.4 cents per mile, which just isn’t a good one for Alaska Airlines Mileage Plan miles. These can be redeemed for much more valuable itineraries.

It might have been worth 20,000 Alaska Airlines Mileage Plan miles for Premium Economy, which is actually a very nice product on Cathay Pacific. However, there wasn’t any availability–just regular economy, which honestly isn’t a much better product than Delta offers. So I went ahead and booked the Delta flight.

I have said it before and will say it again–if you live near a Canadian airport and can fly from there, don’t forget to check the options if you’re having trouble using your miles! You’ll pay slightly more in taxes (it costs about $30 additional from Vancouver versus flying from Seattle), but might open up availability that simply doesn’t exist otherwise.

Free Flights Via Canada

Frequent flier miles are relatively easy to get, but they are pretty hard to use unless you’re going to Alaska in the winter or Phoenix in the summer. Availability is very limited, particularly to places where a lot of people travel and during peak travel times. After all, if airlines can sell the seats, they don’t have much incentive to give them away for free. As someone who likes to travel to nice places during peak times, it can be challenging to find free flights. It’s not impossible though, if you have a little creativity.

“I can get you to Costa Rica,” said the US Airways Dividend Miles agent, “but I can’t get you back to Seattle. I’m just not finding anything.” I wasn’t surprised. I was signed up for a 4 month academic exchange at the top business school in Latin America, and I didn’t want to pay for an expensive ticket to Costa Rica. I would be leaving from Seattle, flying to San Jose, and then returning two days before Christmas.

You can almost never find frequent flier ticket availability around Christmas. Not even if you call 330 days in advance (when most airlines open up seats for the next year). It’s next to impossible. Still, I went through the motions. “Are you OK for time?” I asked. With the agent answering in the affirmative, I asked “OK, can we try to find the flights one by one? Let’s see where I can get from San Jose, and then let’s see if we can find a way to Seattle from there. I’m really flexible, I just want to be home for Christmas. I have only seen my family once this year. I’m sure you can understand.”

US Airways telephone agents are pretty friendly and most of them I have spoken to genuinely want to help you get where you’re going. The company more or less gives them the latitude to help people, because everyone using them is paying a booking fee so the service is paid for. However, most of the agents formerly worked for America West, a fairly small airline based in Phoenix with few international flights, and agents are sometimes not very familiar with US Airways partners or geography. Additionally, their computer system only looks for direct routings (a very common scenario). This means a lot of potential options don’t show up.

Fortunately, I was prepared when I made the call. Before I called, I first researched the airlines I could use to get to and from Costa Rica (StarAlliance airlines at the time; note that US Airways is leaving StarAlliance 3/30/14). The following airlines had service from North America:

  • Air Canada
  • Avianca (aka LACSA and TACA)
  • Copa
  • United
  • US Airways

I also looked at the routing rules. Flights to and from Central America are not allowed to route through South America, but can route through Central America and/or North America. This meant that in order to get to and from Costa Rica, I was allowed to make any number of connections in Central America and North America necessary to get back to Seattle.

US Airways was out. No availability to Seattle via Phoenix. United was also out, no availability via Houston, Newark or Chicago. Copa could get me as far as Miami, but this isn’t a hub of any StarAlliance carrier in the US and there was no way to get to Seattle from there.

“Air Canada?” the agent said incredulously. “I’m not sure if you can do that… well, the rules say North America, I guess that includes Canada. That’s creative, but I’m not seeing any availability… hold on, wait a minute!” exclaimed the agent. “I think I may have found something!” A flurry of furious typing, a deep breath, and he said “Got it! OK, here is what I have for you,” he began to explain. “I have never heard of this airline before–LACSA? You will fly with them to Toronto with a stop in San Salvador. You’ll have to overnight in Toronto, I don’t see any way around this, I checked everything. But then I have you on a nonstop flight on Christmas Eve from Toronto to Seattle. Do you want to book it? You’ll be home for Christmas.”

Yes, I wanted to book it. I could use my Marriott points to stay overnight in an airport hotel. Later, this turned out not to be necessary, because there was a very significant schedule change in my itinerary. This is a get out of jail free card allowing an award ticket schedule change (note that this is the only reason that US Airways will change an award ticket after your trip has already started). I watched seat availability like a hawk and as soon as a seat opened up on the Toronto-Seattle flight on the 23rd, I grabbed it.

yyzTransitSure, it was a little out of the way, and I had a 6 hour layover in Toronto, but my trip took only one day and–most importantly–I flew for free and I did it during the peak Christmas travel period. All I paid was tax on a ticket that would have cost me over $1200 (via the most direct route) if I had paid cash. I just had to think outside of the box a bit. Most Americans don’t think of Avianca and Air Canada as their first choices to Central America.

Fast forward to today. I will be flying from Kunming to Los Angeles in May, using an Aadvantage award seat and flying on Cathay Pacific. I plan to attend a conference this July in New York, so I took advantage of the free one-way domestic award loophole that is available with American Airlines international itineraries. On international Aadvantage awards, American Airlines allows one stopover in the North American gateway city. If you are flying with Cathay Pacific, this means you can stop in Vancouver, San Francisco, or Los Angeles on the way to your final destination. American further allows you to use any partner airline to get to your final destination from the North American gateway city (this is different than some other airlines, which only let you fly on their own planes when you use one of their partners).

I was hoping to find a red-eye flight leaving on a Thursday night, so I wouldn’t need to spend money for a hotel on Thursday for a Friday-Sunday conference. Unfortunately, the only flight that American had available was a flight leaving at 6am, connecting in Dallas, and going to Newark. I do not like taking flights at 6 in the morning, and I do not like connecting in Dallas. However, American Airlines allows unlimited changes to Aadvantage award tickets as long as you do not change the origin or destination cities, so you can grab a flight that isn’t ideal (so you at least have something) and then tweak the itinerary if something better opens up.

Tonight, I was researching my upcoming flight with Cathay Pacific, and I noticed that they have an unusual route. Flight 888 from Hong Kong to New York stops in Vancouver, and you can actually book the segment from Vancouver to New York. “I wonder,” I thought, and after verifying that I could catch a connecting flight from Los Angeles to Vancouver on Alaska Airlines, I called in to make the change. “Cathay Pacific from Vancouver to New York? Are you sure?” the agent said. Answering in the affirmative, I could practically hear the agent’s jaw drop as he said “Well, look at that, you’re right! And yes, there is a connecting flight on Alaska Airlines. There is a difference in the taxes though, it will cost another $35.10.”

yvrTransitI was happy to pay $35.10 to avoid a 6am departure from Los Angeles and a connection in Dallas. I also expect to get a decent night’s sleep on an internationally configured Cathay Pacific flight. And I will have a few hours to enjoy a nice dinner in Vancouver and maybe even visit friends before the flight. And all of this for remembering our polite Canadian neighbors and all the excellent additional flight options that their airports can provide.