Wednesday, February 10, 2010

Air Canada reduces flights from Calgary/Edmonton to Western U.S.

The following Air Canada routes will be changing out of Calgary and Edmonton:
- Calgary to Los Angeles will drop to 2 flights per day from 3
- Edmonton to Los Angeles is gone
- Edmonton to Las Vegas is gone
- Calgary to San Francisco will drop to 1 flight per day from 2
- Calgary to San Diego is gone after initial reports had it going from AC mainline to AC Jazz
- Calgary to Phoenix is gone after initial reports had it running over the summer season on weekends.

There is always the possibility that the Las Vegas, Phoenix and/or San Diego routes will return for the winter season as those destinations rely more on Albertans trying to escape winter.

Tuesday, February 9, 2010

Delta adds routes out of Halifax

For the Summer 2010 season Delta Airlines will be adding service from Halifax to Detroit and New York La Guardia. Both flights launch on Apr 6 and will run once daily.

Flight Timings:
Halifax-Detroit Dep 0900 Arr 1102
Detroit-Halifax Dep 1745 Arr 2124

Halifax-New York LGA Dep 1536 Arr 1645
New York LGA-Halifax Dep 1145 Arr 1506

Source Airline Route Updates

Thursday, February 4, 2010

AeroMexico ends scheduled service to Canada

AeroMexico will be ending their short foray into the Canadian with all scheduled services ending on Apr 4. The Mexico City-Montreal route is already canceled and the last Toronto-Mexico City flight will operate on Apr 4, 10

Source: Airline Route Updates

Wednesday, February 3, 2010

WestJet launching Montreal - Punta Cana service

Starting on May 1st, WestJet will offer 1x weekly service between Montreal and Punta Cana, Domincan Republic

Flight timings as follows:
YUL-PUJ Dep 0700 Arr 1120
PUJ-YUL Dep 1215 Arr 1646

Source: Airline Route Updates

Tuesday, February 2, 2010

AIR MILES Raising Redemption Rates for Flights

For the first time in five years the AIR MILES Rewards Miles program is raising the amount of miles required to redeem for flights with the programs partner airlines. According to AIR MILES the increases are due to increased operating costs that are necessary to continue to bring you more partners, choices, and destinations. The average increase in flight redemption rates is 8%, with some categories only increasing 4% while others will increase as much as 14%. The increases will come into effect on Feb 12, so if you were planning to book a flight with AIR MILES, do so before then to lock into the current redemption rates.

It does not come as a huge surprise though that they are raising the levels. With the increase AIR MILES may be banking on the fact that there will be less people redeeming for flights and more for merchandise or gift cards from their reward catalog. At this time approximately 8-9% of all AIR MILES redemptions are for flights, with this increase that number is sure to drop a bit more. (I am really curious to see what the number was 10 or 15 years ago, I would bet that it was a lot higher). Of course, what they don't tell you is that they would rather have you redeem for merchandise or those gift cards as it is well known in the loyalty industry that these items are a much better profit center then flights.

What is interesting is that for flights, most of AIR MILES competitors, that is frequent flyer programs (Aeroplan, Mileage Plan, etc) have not raised redemption levels in as many years as AIR MILES, they may have put on other restrictions like expiry dates and access to all seats or peak season seats for more miles, but the base redemption rates have not changed. Many of these restrictions like the expiry dates are easily avoidable and AIR MILES has always had higher redemption rates for peak season flights. These frequent flyer programs have also expanded their reward offerings to merchandise and gift cards. The program may be going out on a limb here with the increase as the only comparable increase recently was RBC Avion's long haul North America flight redemption increase last year.

Was this a smart move by AIR MILES? Not necessarily, they will definitely alienate some of their members but AIR MILES strength is in the number of shopping partners they have, no other program can match them and for some members they cannot justify a move to Aeroplan, AIR MILES primary competitor. However Aeroplan may actually benefit somewhat as the AIR MILES increase is starting to make its way into the press and on the Internet, many with readers comments leaning to the negative side. The other major impact AIR MILES may see with this increase, is that WestJet will launch their reward program very soon and the people who use AIR MILES primarily for travel may find the WestJet program more lucrative.

WIll AIR MILES continue to be successful? Absolutely, as stated above, flights only represent a small amount of the AIR MILES business, in fact the program probably shouldn't even be called AIR MILES anymore but the branding is there so why change? The sheer number of members, partners and redemption options will keep the AIR MILES program the success that it is, even if they raised the levels even higher on flights and on their merchandise catalog.

How will this play out? Much like when Aeroplan made the expiry issue in 2006, it will be in the press for a couple of weeks, people will be mad and claim they will change but in the end they will continue to use their program of choice as Canadians have an affinity for loyalty programs and find it hard not to collect points or miles on their everyday spending.

You can find all the details about the flight redemption increases on the AIR MILES Website. You are also encouraged to leave your comments on these changes below.

Monday, February 1, 2010

Air Canada to increase service to South America

Once again, thanks to Airline Route Updates for the info.

Air Canada is increasing service to Bogota, Caracas and Lima as follows:
Toronto – Bogota increases to 4 weekly from 3 as of May 31
Toronto – Caracas increase to 5 weekly from 4 weekly as of May 1, then goes daily from Jun 22 to Sep 2
Toronto – Lima goes to 4 flights per week as of Jun 3

Air Canada increases Tel Aviv flights to daily for Summer 2010

According to Airline Route Updates Air Canada is increasing flights between Toronto and Tel Aviv from 5 per week to daily service. The increase will run May 31 - Sep 16. As well the timings will change with the flight leaving 6 hours earlier from Toronto and 11 hours earlier from Tel Aviv.

Time to get back at it

You may have noticed no new posts or updates to RewardsCanada.ca over the past week or so, well we were on vacation. Now that we are tanned and back in YYC, look for the bonus updates, news, and other features to resume. Some things to look out for this coming week include Air Miles raising redemption rates for flights and lots of new or updated route news.

Check back frequently to keep up to date on all that is going on in Canada's Travel Rewards industry!

Porter Airlines to launch Toronto Island - Sudbury service

From the Porter Airlines press release


Porter Airlines heading north to Sudbury

Service begins March 31

TORONTO, Jan. 27 /CNW/ - Porter Airlines is introducing year-round flights between Sudbury and Billy Bishop Toronto City Airport, beginning March 31, with one daily non-stop roundtrip flight, and one-way fares starting at $99, plus taxes. Flights are now available for booking on www.flyporter.com, by calling 1-888-619-8622 or contacting a travel agent. Porter is the only carrier offering service between these two airports.

"Porter is pleased to expand our service to Sudbury, providing competition on the route, which ultimately benefits customers by reducing fares," said Robert Deluce, president and CEO of Porter Airlines. "Northern Ontario is an important region for us. We are experiencing great success in Thunder Bay, and are looking forward to a similar result in Sudbury."

Air Canada adds service to 7 U.S. cities from Toronto

From the Air Canada press release:

Air Canada expands service to seven more American cities; pursues growth strategy for Toronto hub
New flights fortify airline's position as the leading transborder carrier


MONTREAL, Jan. 27 /CNW Telbec/ - Air Canada today announced new services for seven more American cities, fortifying its Toronto hub and strengthening its position as the leading transborder carrier with the most daily flights between Canada and the U.S. of any airline.

"This additional service to seven more U.S. cities further solidifies Air Canada's position as the leading transborder carrier between Canada and the U.S. and the Number One foreign carrier flying to the United States -- offering the most flights per day to more destinations in the U.S. than any other international airline," said Ben Smith, Executive Vice President and Chief Commercial Officer. "It also demonstrates our commitment to drive Toronto's growth as a hub. Air Canada is already the leading carrier at Toronto's Lester B. Pearson International Airport. Centralized in a single terminal, Air Canada's Toronto hub is the most convenient gateway to and from the U.S., offering multiple connection options for passengers travelling anywhere in our global network. Our strategy is to leverage our hub to make it a global transfer point for domestic, transborder and international travellers."

This spring, Air Canada will offer new daily service between Toronto and seven more American cities including: Orange County (Santa Ana) and San Diego, California; Portland, Oregon; Memphis, Tennessee; Cincinnati, Ohio; Portland, Maine; and Syracuse, New York. Flights will be non-stop and conveniently timed for connections with flights on Air Canada's extensive domestic and international network. Customers can earn and redeem Aeroplan miles on each route.