Avoiding A Cabotage Calamity

With the increasing difficulty of using frequent flyer miles, it’s no surprise that many people are seeking to redeem on partner airlines instead. This sometimes creates situations that would rarely arise before, and one of those situations is called “cabotage.” Ever since another travel blogger, Jeff from Canadian Kilometers, lodged a cabotage-related complaint with the US Department of Transportation, it has made it a lot harder to book awards between US locations while transiting third countries.

Blame Canada

Blame Canada

What is cabotage? It is, quite simply, the practice of a foreign airline (or cruise line) carrying passengers between two points within the United States, even when transiting a third country. For example, consider a flight between Los Angeles and New York via Toronto. It seems like an awfully logical connecting point, just look at the map:

lax-yyz-lga route map

This routing could cause you trouble

If you were to fly Air Canada from Los Angeles to Toronto, and then connect to another Air Canada flight from Toronto to New York, this would be cabotage because a foreign airline carried you the entire way between two US points. And Air Canada would be slapped with a huge fine. It’s $25,000 each time, so they have a strong incentive not to do this. Making matters worse, you might even be able to book this itinerary as an award flight if the airline you’re using has a badly programmed booking engine, causing you unexpected trouble at the airport.

This is what happened to Jeff, who booked a flight from Seattle to Guam on Eva Air, via Taiwan. He was (correctly) denied boarding because this would create a cabotage situation, torpedoing the risky hidden cities itinerary that he’d planned on the mistake fare he found. Rather than accepting that these things can happen when you play dangerous games, he filed a complaint with the DOT and created a situation where even entirely legitimate itineraries can now be difficult to book, and some itineraries are no longer possible to book at all with Avianca LifeMiles.

How do you avoid cabotage? It’s really easy: make sure that at least one part of an itinerary between US locations, which transits a third country, is on a US carrier. So, for example, it’s totally OK to book a flight from Los Angeles to Vancouver on Alaska Airlines, which then connects to a flight from Vancouver to New York on Cathay Pacific. This is not cabotage. In fact, I am doing this right now. Similarly, Jeff could have flown ANA to Tokyo, and switched to a United flight to Guam. You can even transit a city in a third country using a US carrier and this is also no problem. So, for example, if you want to fly from Seattle to Las Vegas via Vancouver BC on Alaska Airlines (which you might want to do if award inventory is only available with this itinerary), it’s entirely OK and there is no cabotage. You would have to pay both US and Canadian immigration and airport fees, though (and endure all the immigration hassles, and travel with your passport) so this is probably something you don’t actually want to do unless it’s truly necessary.

As long as you know the cabotage rules, you can probably manage to book itineraries that don’t actually involve it, but it might require booking over the phone and appealing to a supervisor in order to get it done. Plan extra time at the airport in case you’re challenged. And be aware that airline search engines are imperfect. They may recommend (and allow you to book) itineraries that involve cabotage and will result in you being denied boarding at the last minute. Conversely, they may not display itineraries that are perfectly valid and don’t involve any cabotage, but do transit through a third country. In this case, you may have to piece these itineraries together manually.

As always, the thrill is in the hunt when traveling on miles and points. Avoiding cabotage situations sounds difficult, but in reality, it’s really simple: always book at least one leg (either into or out of the US) on a US carrier.

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.