This one stings.
I’ve always respected the ex-Continental brains behind the rebirth of Air Canada’s Aeroplan program. I met Mark Nasr and Scott O’Leary at a 2012 United DO in Chicago and noted how impressed I was with Mr Nasr’s in-depth knowledge and how open he was about sharing information. It’s always a good thing when you have frequent flyer junkies creating a new award program as they did 5 years ago.
Alas, times are changing.
Many airlines have introduced dynamic pricing for their own award flights. Some airlines, such as United, still maintain a saver award level, while others, such as Delta, have fully dynamic award rates.
But most airlines still have fixed award rates for travel on partner airlines. A notable exception is Delta, which long ago went fully dynamic on partner award pricing.
Air Canada’s Mark Nasr now says that the industry is moving towards dynamic pricing on partner airlines, and they will join that movement next month.
Reading between the lines in this interview, it seems to me that he’s implying that these changes were demanded by United.
That would also explain why Lifemiles is also devaluing United awards, while Lufthansa awards were not changed. But Lifemiles has no award chart and failed to provide any advance notice. At least Air Canada has the respect to let us know this is coming.
You can find Air Canada’s current award charts here.
For example, the current “within North America” chart has fixed pricing for partners. Emirates and FlyDubai are exceptions for partners that have variable pricing.
Effective 3/25, awards on United, Etihad, Calm Air, Canadian North, and PAL Airlines will move to the Air Canada rate instead of the partner rate. Other partner airlines will retain fixed pricing.
For these select partners, Air Canada will advertise a starting price, as well as the median price for redemptions made in the previous year. It will not have a cap on pricing. Median pricing will be published every quarter. Practically speaking, we won’t have a better idea of what this all means until 3/25.
With the 3/25 changes, Air Canada will once again be able to book Etihad business class awards, though first class will remain blocked.
Chase Air Canada Aeroplan® Credit Cardholders will receive a discount on the dynamic awards.
Air Canada says the long-term goal is to gain access to additional partner award inventory, but that won’t happen right away. Maybe United will stop blocking most award space from partners with these changes? That seems unlikely but it would be a silver lining if that came to be.
Either way, if you do have Aeroplan miles, be sure to book what you can before 3/25…
I may sound like a broken record here, but this is why I always say not to keep miles with an airline. Instead, keep your points with banks that allow you to transfer on demand, only when it makes sense for a redemption.
The value in programs like Air Canada and Lifemiles has been a backdoor way to book United awards for less, albeit with high penalties for changes or cancelations compared to free cancelations with United miles. United may be withholding award inventory and forcing airlines to increase rates as they would prefer people earn and redeem United miles for United flights.
There are still other Star Alliance redemptions options for travel on United that can make sense, but they are dwindling. For example, Turkish Airlines can still book domestic travel, including Hawaii, for just 10K miles in coach or 15K miles in first class each way. We’ll have to see how long that lasts.
What do you make of these upcoming changes?
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12 Comments On "Air Canada Award Tickets On United And Select Other Airlines Will Go Dynamic Next Month"
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Is air Canada charging dynamic pricing on partners?
For example, I saw them charging a specific amount I think it was 70k for jfk to tlv with a very long stopover on lot polish but the exact same routh on the same date just with a short stop they charged wayyy more then 70k Any explanation for that?
I wrote the Above comment on the lifemiles post.
As far the example above goes it seems like that dynamic on partners are already in affect for a while unless there is some reason that I’m unaware of?
Date?
It was in the past. I can try to search for future dates
I’m literally unable to find now any dates short stopover with lot thru air Canada.. so can’t show an example
Not directly related but any way to use United Travel Bank funds for Air Canada flights?
You can try booking a United flight, canceling it with an agent and ask for ETC credit, and use that ETC to book an Air Canada flight.
How far out is the best time to book from the US to TLV with United miles? Either on United or partner airlines.
There’s no rhyme or reason. I check daily for saver awards that I need and nearly always get what I need.
For now, saver award space is restricted, which will likely remain the case at least until the route actually resumes.
Thanks!
The writing was on the wall for United redemptions when they hired a Comcast executive.
Indeed.
Investors (and corporate executives by extension) require ever increasing stock prices/profits. How else do you obtain that (especially in our current environment where credit cards are over 50% of airline profits)?