From bankruptcy to brilliance
Air Canada introduces flight pass for the fall
It was not to be a banner day. Just as Air Canada was about to launch its multi-trip pass on Wednesday with an aerial sign high over Toronto during afternoon rush hour, rain cancelled the fly-by. Then came word — anticipated within the industry — that Northwest Airlines and Delta Air Lines had filed for bankruptcy protection in the United States.
Air Canada’s launch may have been drowned out — the aerial promotion was also scheduled in Montreal this week — but it speaks volumes about how far the airline has come. Little more than a year ago, the pariah of Canada’s skies was struggling to come out of bankruptcy protection. Now it is boasting full planes and some of the most innovative marketing plans in the business.
The new fly-as-you-please pass to anywhere in Canada and the U.S. (except Hawaii) during October and November is the follow-up to the airline’s successful regional pass programs over the past year. One in the west, one in the east and a Sun Pass program, they allowed customers to purchase a discounted batch of tickets in the form of flight credits.
The latest plan promises more flexibility. Travellers can purchase the North America Unlimited Pass online, and book flights to more than 100 destinations. They also get to collect Aeroplan points in the process. Some excited bloggers have calculated that you could make two roundtrip flights a day between Toronto and Vancouver for 61 consecutive days — and collect 1.3 million Aeroplan points.
Now for the price. At $6,998, plus GST (QST in Quebec), it is out of the ballpark for the average leisure traveller. But for business travellers and jet setters, that’s a bargain, especially considering the price is “allin,” meaning there are no additional service fees and surcharges to pay.
“Clearly, it’s a bonanza to some people,” says Rick Erickson, an independent airline consultant in Calgary. “ Air Canada may lose some money on this one, but we are talking October to November. That’s a traditionally soft period.”
He points out that the initiative is not a drive for passengers. The airline is achieving record passenger numbers, posting an 85.3% load factor in August. “Some people who want to travel can’t travel because there aren’t any seats available,” says Erickson.
Air Canada has been an industry leader of late in “ thinking outside the box,” says Erickson. “I think they will float this and see what happens next. It’s a learning experience at marginal cost.”
Air Canada is not the first airline to introduce a pass program. Cathay Pacific’s All Asia Pass, for example, offers roundtrip airfare between Canada and Hong Kong, as well as 21 consecutive days of travel to 18 Asian destinations, for $1,999. Star Alliance and OneWorld also offer regional passes among their alliance partners.
The difference with Air Canada’s new product is its true fly-as-you-please features. Charlie McKee, Air Canada’s senior director of strategic marketing, describes it as a “subscription” to the airline for two months.
“It is more than a trial because we’ve invested a lot in this,” says McKee,“but we are going to use this opportunity to find new ways of relating to our customers.”
Northwest and Delta, have you met the new Air Canada?
Deborah Stokes is the Post
travel editor.