Friday, October 24, 2014

Air Canada Altitude Elite Program 2015 Changes - Not very good news

Big changes, most of them not good are coming the Air Canada's Elite Program Altitude. Yesterday they released the details of the 2015 program. You can find all the details on the Air Canada website including a FAQ for the changes. The biggest reason for the changes as stated by Air Canada is:
" These changes are being introduced following a thorough benchmarking exercise in order to competitively position Air Canada alongside the world's leading carriers."
Devaluing a program to position yourself competitively just doesn't make sense. I can see some of the reasoning for the changes, in particular the minimum Air Canada Flight Requirement to weed out not so frequent Air Canada flyers but the eUpgrade changes are hitting loyal AC flyers below the belt.

The changes are as follows:

Minimum Air Canada Flight RequirementThe Minimum Air Canada Flight Requirement needed to reach Altitude status for 2016 is increasing. The Minimum Air Canada Flight Requirement refers to the minimum number of Altitude Qualifying Miles and Altitude Qualifying Segments that must be flown on flights operated by Air Canada, Air Canada Express and Air Canada rouge in order to reach any Altitude status level.

As you can see you now need to fly at least half of your qualifying flights on actual Air Canada metal. Not a huge deal for the Altitude flyers who fly mostly within Canada or are already flying lots on Air Canada but definitely a huge issue if you fly lots on United, Lufthansa or other Star Alliance airlines.  This is moving against the grain in the whole alliance attitude we have seen develop over the past 2+ decades. Airlines typically garner more revenue with people flying on their own metal is one factor for this change as well as trying to weed out those who don't even fly Air Canada but credit flights to Aeroplan to earn status sooner than other programs.
500 Mile Minimum

The 500 Mile Minimum privilege will no longer be in effect. For travel from March 1, 2015 onwards, miles earned will be based on the distance flown and the fare option purchased for flights operated by Air Canada, Air Canada Express, Air Canada rouge and Star Alliance™ member airlines.
Not a game changer but still for someone who flies a lot of short haul routes you may stand to lose out on miles.
eUpgrades to Business Class
For eUpgrade requests made on or after March 1, 2015, the number of eUpgrade Credits required to upgrade will be increasing. Furthermore, the number of eUpgrade Credits Altitude members can earn through Threshold eUpgrades is changing.
North America

Sun Destinations
Europe, Middle East, South America
Asia & Australia
This is a game changer. And it isn't good. With some increases over 50% on International flights, those of you Altitude members looking to upgrade on long haul flights are going to be fuming! This is the biggest devaluation of the program
Introducing eUpgrades to Premium Economy In early 2015, Altitude members will be able to access the comfort of Premium Economy using eUpgrade Credits when travelling on an eligible fare. eUpgrade Add-ons will not apply for these upgrades. Stay tuned for more information regarding eUpgrades to Premium Economy later this year.
 This is a welcome benefit
eUpgrade Nominees

Effective March 1, 2015, Altitude Super Elite™ 100K members will be entitled to share their eUpgrade privilege with one eUpgrade Nominee, while maintaining their ability to share their privileges with Travel Companions.
Not a welcome change to this benefit as it has gone from 4 to 2 to 1 now.
Priority Boarding

In early 2015, a new streamlined boarding process will be introduced to ensure that Altitude members get even more out of their Priority Boarding privilege.
A good change? Hopefully! Not sure how this will be implemented but I'm guessing Elite members have complained as Priority Boarding is not very priority when you have TD credit card holders and others getting access to Priority Boarding. Will the process be Altitude members followed by Star Alliance Gold, Business Class ticket holders and TD Aeroplan Visa Infinite Privilege cardholders?

Complimentary access to International Maple Leaf Lounges and Star Alliance Business Lounges

Altitude Elite 35K members will no longer have the option to choose complimentary access to International Maple Leaf Lounges and Star Alliance Business Lounges as part of their Select Privileges. Instead, members will be able to select a 50% discount on any Maple Leaf Club membership. As part of their Core Privileges, they will continue to enjoy the comfort and amenities of select Air Canada Maple Leaf Lounges located in the domestic and trans-border departures zones of Canadian airports, along with those in Los Angeles and New York
Good and bad news. Bad news for the 35K members to lose out on access to International lounges. Good news for all other members as this may curb some of the crowding found in some lounges.
Preferred Seats Altitude Elite 50K members will not only enjoy complimentary access to more Preferred Seats with the purchase of a Flex fare for travel within North America, but will also receive a 50% discount on the Preferred Seat fee with the purchase of a Flex fare booked for travel from Canada to an international destination. The expanded access to Preferred Seats is currently available. More details.

Altitude Elite 35K and Altitude Prestige 25K members will enjoy access to more Preferred Seats at a 50% discount on the Preferred Seat fee with the purchase of a Flex fare for travel originating in Canada. The expanded access to Preferred Seats is currently available. More details.
Some savings to be had here. This is one good benefit for being loyal.
Introducing Flight Rewards for Premium Economy
In early 2015, Aeroplan® and Altitude members will be able to redeem their Aeroplan Miles for seats in the Premium Economy cabin on Air Canada. Details will be coming soon.
Air Canada only recently started adding Premium Economy seats to select aircraft so it makes sense to offer redemptions for them.
Fuel Surcharge on Flight Rewards

For ClassicFlight Rewards made as of March 1, 2015, the flight reward fuel surcharges for travel within Canada and between Canada and the U.S. will be waived for Altitude members. This is applicable on flights operated by Air Canada, Air Canada Express and Air Canada rouge.
Furthermore, at the same time, the ClassicFlight Rewards fuel surcharges for travel between Canada and other international destinations will be waived for Super Elite 100K members on flights operated by Air Canada, Air Canada Express and Air Canada rouge.
Great news for Altitude members. Super Elite 100Ks will see lots of savings on Aeroplan award tickets while all Altitude members will save around $30 on Canadian and U.S. redemptions.
Flight Reward change fee waivers

Aeroplan® Flight Reward change fee waivers for Super Elite 100K members will be no longer be available for changes made on or after March 1, 2015.
This may seem minor but really, charging change fees to your top customers? But then again Super Elites could be the biggest 'abusers' of booking, changing, cancelling, booking again etc. It is just like the new fees for baggage within Canada. Air Canada could have chose to not charge the fee like WestJet but they would be foregoing tons of revenue. Same with these change fees, they are foregoing a good chunk of revenue.
Priority Rewards Priority Rewards will be limited to ten (10) reservations per eligible Altitude member, per benefit period beginning March 1, 2015. Super Elite 100K members are able to book a combined total of ten reservations in both Economy and Business Class. In the event that Aeroplan ClassicFlight® Reward seats are completely booked, Priority Rewards offer access to additional seats on flights operated by Air Canada, Air Canada Express and Air Canada rouge.

Another limitation but not a huge deciding factor in limiting the 2x miles Priority Rewards.

That's it. That's all she wrote. What do you think of the changes for the 2015 Air Canada Altitude program. Are they going to change your travel habits? Your loyalty? Are you going to switch programs? Let us know! To see what some major AC flyers think of the changes read this FlyerTalk thread.

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