Tag: aeroplan

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

TProphet0 comment

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!

Aeroplan Locking Accounts For Signup Bonuses

TProphet2 Comments

Air Canada Aeroplan is a popular program to use for award bookings, so it’s not surprising that a lot of people outside of Canada engage with it. You can transfer your points from American Express, Capital One, Marriott Bonvoy and Chase to the Aeroplan program, and use them to book flights on either Air Canada or its truly massive number of airline partners (both StarAlliance and other carriers such as Etihad and Oman Air). So given that, you might be tempted to pick up a Chase Aeroplan co-branded card. These recently launched, and they come with a generous sign-up bonus along with some excellent bonus categories (such as 3x points at grocery stores).

See polar bears with Calm Air, an Aeroplan partner

Well, if you had the Chase Aeroplan card in mind to get you closer to an Aeroplan award, you might want to put those plans on hold. Air Canada has just updated their Aeroplan terms and conditions with some vague and disturbing legalese to their Terms and Conditions that seems targeted at people who qualify for welcome bonuses from Aeroplan banking partners (like Chase):

"Aeroplan may, in its sole discretion, choose to limit the number of Welcome Bonuses or similar bonuses or incentives a Member may receive in any period, and, in addition to the other remedies set forth in these Terms and Conditions, reserves the right to suspend, revoke or terminate the Account of any person who engages in a behaviour of excessive use of the Welcome Bonus offers."

Aeroplan then goes on to vaguely define what it considers abuse in a non-specific way. It’s important to note that this language appeared after multiple Canadian users of Aeroplan reported that their accounts have already been locked “at the request of a bank” after qualifying for signup bonuses, so it appears that Aeroplan is already locking accounts based on some set of criteria.

One of the downsides of frequent flier programs is that they are almost entirely unregulated, and when they operate in countries like Canada (which offers generally poor consumer protections, especially when it comes to airlines) you’re pretty much entirely at the mercy of an airline. They control the vertical and the horizontal. The points in your account hold no value, as they happily remind you in the Terms and Conditions (irrespective of the fact that you can buy them from the airline for actual money), and they also don’t belong to you. It’s very much a one-sided deal.

I don’t know how this is going to ultimately shake out. It’s almost unheard of that an airline program would lock a frequent flier account because of a legitimately earned signup bonus. However, this has clearly happened. Until the dust settles, I recommend that you don’t sign up for the Chase co-branded Aeroplan card. There aren’t enough benefits to holding the card for most people in the US to justify the risk that Aeroplan will randomly decide to torch your account because you earned a signup bonus.