Aeroplan rethinks rewards changes

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Aeroplan rethinks rewards changes
Last Updated Thu Jan 24 14:46:04 2002
TORONTO - Air Canada is reconsidering changes to its Aeroplan rewards=20
program after a backlash from its customers.

The carrier had indicated Wednesday it would make changes to benefits for=20
some of its Aeroplan members. That brought a mountain of criticism.  "We're=
=20
reviewing and we'll make announcements about the program benefits in the=20
very near future," says Laura Cooke, Air Canada's spokesperson.  The=20
program has become costly for the airline. There are seven million Aeroplan=
=20
members and Air Canada reserves 10 per cent of its seats for redemption by=
=20
those members.
The airline issues about 2,400 reward tickets every day.

"We're listening to our customers," says Cooke. "We want to continue to=20
offer a program that is both meaningful and sustainable."  The only changes=
=20
under consideration, so far, concern "super elite" customers:
=B7       they'll only be able to get a frequent-flyer upgrade to business=
=20
class 72 hours before a flight
=B7       they won't be able to use upgrade coupons for seat sales

Cooke says changes are not planned for the majority of Aeroplan customers=20
and seat availability will remain the same.
Consumer groups say Air Canada is in a position to do whatever it wants,=20
especially since the demise of discount carrier Canada 3000 last=20
November.  "There's no legislation to protect consumers on this. You just=20
have to go with the flow, unfortunately," says Harry Gow, head of Transport=
=20
2000, an advocacy group.

There are few options for Canadians wanting to collect frequent-flyer=20
points. Neither WestJet nor Air Transat has reward programs.  The other=20
option is to fly U.S. carriers where possible or join Air Miles, the=20
frequent shopper program. Members can redeem miles with a variety of=20
carriers.  Business analysts say Air Canada is just trying to be efficient.
"What they're trying to avoid is a reward traveller taking a seat that they=
=20
could sell to a paying passenger. That's a sensible move," says business=20
professor Joe D'Cruz of the University of Toronto.

Written by CBC News Online staff



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