Aeroplan customers can now pay fees with points but some still feel gouged - Action News
Home WebMail Friday, November 22, 2024, 04:10 PM | Calgary | -10.8°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Business

Aeroplan customers can now pay fees with points but some still feel gouged

Aeroplan members can now use points instead of cash to cover added airline fees. But not all customers are pleased. That's because, for flights with big fees, the extra points required can sometimes add up to more than the points needed for the flight itself.

Some fees will require more points than the actual flight

Aeroplan is promising members more rewards (Aeroplan)

Aeroplanmembers can finally fly completelycash-free.

The travel rewards program now allows customers to use points instead of cash to cover those pesky added airline fees like taxes and fuel surcharges.

In the past, manyAeroplancustomers have complained that extra fees can lead to a charge of hundreds of dollars for what was supposed to be a free flight.

But not all customers are flying high after hearing the latest news.

That's because for flights with big fees, the extra points required can sometimes add up to more than the points needed for the actual flight.

For example, CBC News scoped out a flight from Vancouver to London, England, in July on Air Canada. We found a return flight for 39,000 Aeroplan reward points.

An extra 69,754 points would be required to cover the added $592.91 in fees. That's about 30,000 more points than the actual flight.

We also looked at a round trip during the same time from Toronto to Paris. The Air Canada flight required 60,750 points. The added $585.86 in fees would run an extra 68,924 points again, more than the amount for the flight.
An Aeroplan ad for its new cash-free plan where customers can pay for extra fees using points. (Aeroplan)

'Outrageous' numberof points

The math has someAeroplancustomers fuming.

"I am completely disappointed," a disgruntled customer wrote on the company'sFacebooksite,where it announced the new deal.

"The miles you need to pay for taxes is outrageous," another person commented.

Travel rewards expert PatrickSojkasays Aeroplanmilesare worth just 0.85 cents each when used to cover added fees. But he says when booking a flight withAeroplan, a point is worth at least 1.5 cents.

"When you're buying a 60,000-mile flight to Europe and having to pay an additional 70,000 miles, that's a tough pill to swallow," saysSojka, founder of the resource site Rewards Canada. "That's another flight to Europe."

Some like it

Aeroplansays it introduced the new policy due to customer demand.

The company says even with the extra fees, whether in cash or in points, it still offers the best deal in town.

"Aeroplanis beyond a doubt way better value than all other travel programs out there," chief marketing officer John Boynton says.

Many customers are taking advantage of the new program, he adds.

"Thetake-upis better than we thought and the customer reaction is better than we thought."

Aeroplansaid it couldn't provide CBC News with actual numbers.

Sojkabelieves the points-for-fees program will likely be a hit with passengers who collect more reward miles than they know what to do with.

"For some people, it's definitely a great option and it's good thatAeroplanoffers this," he says.

Some still unhappy

But AeroplanmemberLenDvorkinsays he doesn't even consider it an option.

"It's not a wonderful deal," he says from his home inThornhill, Ont.
Len Dvorkin from Thornhill, Ont., says he won't waste his Aeroplan points on covering airlines fees. (CBC)

In 2014,CBC News interviewedDvorkinafter he got stuck paying $2,565 in added fees when using points for three round-trip Air Canada tickets from Toronto to Milan.

"That's a lot of money for a free ticket," he said at the time.

Although he dislikes shelling out cash for extra charges,Dvorkinsays he would never use his reward miles to cover them.

"It's not the best use of your points."

Dvorkinhas just booked a second family trip to Milan usingAeroplanpoints. To avoid paying big bucks for extra fees, he chose flights on carriers that don't include pricey fuel surcharges Polish Airlines and Scandinavian Airlines.

The fuel surcharge debate

Added airline fees cover things like airport improvement charges and sales tax. But the most expensivefee by far tends to be the carrier surchargethat only some airlines require. Rewards expertSojkasays "carrier" is just another name for what's commonly known as a fuel surcharge.

And it can add up. For example, ontheAeroplanflight we looked at from Toronto to Paris, of the $585.86 required inextra fees, $456.00 was for Air Canada's carrier surcharge.

Dvorkinbelieves the ultimate way to pleaseAeroplancustomers would be to eliminate the expensive extra fee.

"Stop making these sky-high fuel charges in the first place," he says, noting the price of oil has dropped dramatically.

Oil has lost more than half its value since 2014. The price of jet fuel is closely linked with the price of oil.

Aeroplansays it has no control over airlines that bill for carrier surcharges.

"You'd have to talk to the airline about those charges," Boynton says.

Air Canada says not just about fuel

CBC News asked Air Canada why it still tacks a surchargeonflightswhen the price of oil is so low.

Spokesman Peter Fitzpatrick responded in anemailthat many non-fuel factors also influence the charge including"general market conditions, competitive factors, supply and demand, local fees and taxes," plus regulations and, most importantly, the foreign exchange rate.

Regardless of what factors are involved,Dvorkindoesn't want to pay the extra expense. But his solution is not to use up his points to cover the cost.

Instead, he says he'll keep searching forAeroplanmember carriers that don't include pricey surcharges.