Updated: New Aeroplan, New Credit Cards

Filed Under: Air Canada, Air Canada Aeroplan
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Update: TD and CIBC dropped details of their card changes today in concert with the Aeroplan announcement. This post has been updated to incorporate that new information.


A new points program and approach to redemptions are all well and good, but most of us aren’t earning all those Aeroplan points with our butts in seats. Credit cards, even in Canada’s tight regulatory environment, are a critical part of the earn and burn ecosystem.

Let’s take a look at what we know about how Aeroplan credit cards are changing to work with the updated Aeroplan program launching this fall.

Three credit card partners, three levels of cards

Aeroplan’s partners will continue to be TD, CIBC, and American Express. Each partner will be offering three tiers of credit cards, which will have different fees and benefits at each level:

  • Basic
  • Core / mid-tier
  • Premium

The premium level card from all partners will boast a variety of new benefits, and I’m interested to see what that looks like in practice. Before getting into that, however, let’s look at what new benefits are available more broadly across the credit card line-up.

I note that the discussion below is focused on the TD and CIBC options, as American Express is not expected to release details on its cards until closer to the end of the month.

Enhanced Earn Rates

Although American Express isn’t expected to release any earn rate information until the end of August, TD and CIBC cards will start at a base earning rate of 1 Aeroplan point per $1.50 CAD in spend. This is the same as is presently offered for their basic Aeroplan cards (the TD Aeroplan Visa Platinum and CIBC Aero Platinum Visa).

The new core level cards, which would be in the same tier as the present TD Aeroplan Visa Infinite and CIBC Aerogold Visa Infinite, will earn at a rate of 1 Aeroplan point per dollar.

At the premium level (TD Aeroplan Visa Infinite Privilege and CIBC Aerogold Visa Infinite Privilege), cards will earn 1.25 points per dollar on purchases generally, 1.5 points per dollar on gas and groceries, and 2 points per dollar on Air Canada purchases.

Gas and groceries will have a 1.5x multiplier for both the core and premium card levels, though the American Express Cobalt™ Card will still probably be the better card to use for those purchases.

Purchases from Air Canada or Air Canada Vacations will get a 1.5x multiplier at the core level, and 2x on premium cards. For Americans accustomed to earning 3x or even 5x on airfare, this likely sounds uninspiring, but 2x is on par with the most premium travel card available here.

Status Bumps

The core credit cards will “boost” your quest for status by 1,000 status qualifying miles and 1 status qualifying segment per $10,000 eligible annual spend.

The premium card will double that rate, with the same boost for every $5,000 in eligible annual spend.

Note that these “boosts” won’t help you meet the status qualifying dollar target, which at the higher end is the more difficult status criteria to meet, but they are likely to make a difference for semi-regular fliers in getting low and mid-level statuses.

NEXUS Rebate

The core-level cards have added a rebate for a NEXUS application or renewal fee for each cardholder as well. On a per cardholder basis, that benefit will come into play at a maximum of $100, once every five years, so it’s not much to write home about.

Expansion of Benefit Scope

The core-level cards had carried a free first checked bag benefit, but only for a primary cardholder travelling on an Aeroplan redemption. That benefit will now apply to all Air Canada itineraries, and will be available to additional cardholders.

Additional cardholders will also have access to some insurance benefits that had been limited to primary cardholders, including delayed and lost baggage coverage, purchase security and extended warranty (specifically excluding drones, which made me laugh a little), and some of those insurance options will be more broadly applicable overall. Frankly, however, I consider any attempt by a credit card or bank to get me excited about insurance a clear indication that they don’t have much else to be excited about.

Lost Benefits

Core-level cards that included a Maple Leaf Lounge pass and priority check-in and boarding will be losing those benefits. As they were limited to the primary cardholder flying on an Aeroplan redemption, these were not the most exciting aspects of the cards to begin with, but in a household with two cardholders, they may be a minor factor in holding two primary cards, versus a single premium with a second cardholder.

The Premium Cards

A number of benefits specific to the new premium cards have also been outlined. The current TD Aeroplan Visa Infinite Privilege and CIBC Aerogold Visa Infinite Privilege cards have a $399 annual fee, which will be increasing to $599, so consider the value of these benefits carefully.

Rollover SQM and eUpgrades

Premium cardholders will be able to roll upt to 200,000 “leftover” status qualifying miles towards next year’s status.

Similarly, up to 50 unused eUpgrade credits, which would normally expire at the end of the year, can be extended for holders of cards with this benefit, provided that they requalify for status.

Credit card holders to the front of the line

Integrating Aeroplan directly into Air Canada’s status and booking systems will permit premium credit card holders to get a bump in priority for certain benefits.

If this works similarly to how the Delta Reserve cards do in the U.S., upgrades, and standby are where we’re likely to see this play out most often: all other things being equal, a 50K Elite with an Aeroplan premium credit card will get their upgrade before a 50K Elite without one.

Annual Worldwide Companion Pass

With $25,000 of eligible annual spend, a premium cardholder will be entitled to an economy ticket for a companion anywhere in the world. This benefit is limited to one per year, but note that this is not a complimentary companion ticket.

Instead, the price of the companion ticket is based on the destination region — a companion ticket within Canada or the U.S. would be $99, whereas one to Asia or Australia would be $599. Plus the taxes, fees, and fuel surcharges, of course.

This benefit replaces the existing 50% discount on one companion ticket annually.

Changes to Lounge Access

While the present cards come with 4 annual Maple Leaf Lounge Passes per year, each of which can only be used by the primary cardholder and companions travelling together on an Aeroplan redemption, the new cards will allow both primary and additional cardholders, each with one guest, to access the Maple Leaf Lounges in North American anytime they are travelling on Air Canada or Star Alliance.

Benefits for Additional Cardholders

Some airport benefits are also being extended to additional cardholders, including priority check-in, boarding, and a free first checked bag. That said, the annual fee for additional cards is also jumping from $99 to $199.

Overall

As always, the devil is in the details, and we don’t have enough of them yet, at least until American Express weighs in. The premium benefits are definitely intriguing – the ability to roll over benefits gives a cardholder so much more flexibility in maximizing the use they can get from their benefits. For high-end users, those premium cards look very attractive, subject to the annual fees, though I won’t hold my breath on any of them waiving forex fees.

By contrast, the core benefit suite doesn’t seem to have gained much compared to the cards currently on offer, though the potential for status bumps could be nice. Here’s hoping that there’s good news for mid-level cards between now and November 8 to go with the buzz around the premium options.

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Comments
  1. @Daniel

    TD used to offer an Aeroplan credit card for US customers but they no longer do. You can actually still find the landing page for that card if you Google it but you can’t actually apply for it.

  2. @Kate, I think there is a typo in your article?

    “TD and CIBC cards will start at a base earning rate of 1 Aeroplan point per $1.50 CAD…”

    The base earning rate should be 1 Aeroplan point per $1.00 CAD spend, no?

  3. @ Joe — Nope, that’s correct (based on what we know). There are three tiers of cards, and the base cards earns 1 point per $1.50CAD spend on non-bonused spend. We probably wouldn’t recommend using it for everyday 😉

  4. I always have so much trouble just trying to search for flights on Aeroplan. I always get this messaged after I hit ‘search’: “Your requested itinerary cannot be booked at this time, please try again. If the problem persists, please call the aeroplan.com website support centre at 1-866-689-8080”

    This has been going on for months. Does anyone know if there’s a workaround for this?

  5. Umm, yeah, nah, I won’t take TD or CIBC’s top tier cards before or after the product refresh. Moved to Canada two years ago from the States and the thing that boggles my mind is how top tier CA cards with $399 annual fee don’t even have FX fee waived… Even mid-tier cards in the states mostly don’t charge foreign transaction fee these days but Scotia’s passport infinity card is the only one in Canada that doesn’t charge FX fee. Also, even the top tier cards only comes with the 6 passes/yr Priority Pass… I mean that is literally ONE round trip a year for a family of 3. Then there’s how base level Aeroplan card earns 1pt for 1.5 CAD… I get loonies are weak these days but still, how is earning fraction of a point even a thing? The “sweet spot” (if you can call it that) in Canada is basically the mid-tier cards from TD, where a premium checking account would waive the annual fee. Combine that with a CA Amex Gold that I global transferred over, I am more or less set with purchases in Canada. International spending & flight/dining still goes on my US Citi Prestige for that 5X.

  6. “ At the premium level (TD Aeroplan Visa Infinite Privilege and CIBC Aerogold Visa Infinite Privilege), this base spend will have a 1.25x multiplier under the new system, where the present cards pay out at 1 point per dollar.”

    This is not correct. The present Visa Infinite Privilege cards have a 1.25x multiplier on all spending, and a 1.5x multiplier on gas, grocery, drugstore and Air Canada purchases. Let’s not be presenting things as an improvement when, given Air Canada’s history, we will be lucky if we can hold the line on benefits.

  7. And that’s how I walk away from Aeroplan and American Express and sign up for a Walmart no fee credit card! I’ll keep my Alaska credit card for now, but without being able to use Cathay Pacific anymore, I’ll be kissing it goodbye soon as well. Good bye Aeroplan, it was good while it lasted.

  8. There’s a lot of interesting detail on the TD website regarding features of the new cards. Also interesting to note the annual fee of the top tier card is increasing to $599, plus $199 for additional cardholders. So while the new features are very intriguing, that’s a whopping fee, especially with the outrageous fx fees on top!

  9. Currently my CIBC Aerogold card is 1 mile per $1, 1.5 mile at grocery and drug stores.

    Your article indicates that this will be reduced to 1 point per $1.50. It Aerogold really that stupid?

    Probably, you say,

    At this rate nothing in the “new Aeroplan” is an improvement given that reducing YQ on AC flights while at the same time boosting the rewards by 30 40% for AC flights does nothing. Will stay with partners until the points are gone.

  10. Wow, Canadians really get screwed twice – First, exorbitant airfares. Then, a credit card scene that is a complete ripoff…. Paying CAD600 for that garbage premium card category seems unreal. Almost like paying someone to punch you in the face…

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