Air Canada has today announced that it will introduce two new premium fare categories — business class basic and premium economy basic.
In this post:
Details of Air Canada’s new “basic” premium cabin fares
Air Canada is introducing business class basic and premium economy basic, because “demand for premium travel continues to grow, and this change aligns with our partners and industry trends.” These fare brands will be available in the Caribbean, Latin America, Mexico, South America, and in transatlantic joint venture markets, alongside United and Lufthansa Group. Here are the key details:
Key attributes | Premium Economy Basic | Business Class Basic |
Refundable | No | No |
Changeable | Yes, for a fee | Yes, for a fee |
Advance Seating | Chargeable | Chargeable |
Baggage | 1 piece complimentary | 1 piece complimentary |
Carry-On Bag | Permitted | Permitted |
Lounge | Not permitted | Maple Leaf Lounge: included Signature Suite: not included |
Priority Boarding | Included | Included |
Priority Baggage | Included | Included |
Onboard meal | Included | Included |
Aeroplan Loyalty | Aeroplan points and Status Qualifying Credits (SQC) | Aeroplan points and Status Qualifying Credits (SQC) |
When it comes to points and SQC qualifying credit, these fares will earn 1x Aeroplan points per dollar spent, and elite status members can earn between 2x and 6x Aeroplan points, depending on their status at the time of travel. The fares will accumulate SQC at a rate of 4x SQC per dollar, aligned to other fares in those cabins.
Aeroplan elite status and credit card benefits will still apply, except for eUpgrade, which can’t be used on these fares.
Air Canada makes an interesting claim about basic fares
It’s absolutely not surprising to see these fares roll out. On the most basic level, that’s because Air Canada is in a transatlantic joint venture with United and Lufthansa Group, and we’re seeing those airlines roll out basic fares across the Atlantic. So since these airlines coordinate schedules and fares, it makes sense to have a streamlined offering across carriers.
Frankly, as far as “basic” fares go, these are hardly the most punitive that we’ve seen. You’re primarily just having to pay to assign seats, and you’re probably stuck with higher change fees.
Here’s what I find most interesting, though. The trade bulletin about these changes describes this as “providing more options” and “enabling customers to choose the benefits they value most.” I usually call out those claims, because that’s not typically what’s actually going on.
As I’ve said in the past when airlines roll out basic premium fares, I wouldn’t expect basic business class fares to be materially cheaper than previous standard business class fares. Instead, more often than not, I suspect the previous cheapest fares are just being made the new basic fares, in an effort to get people to buy up to more expensive fares.
After all, the goal is to extract as much revenue from passengers as possible, and to create punitive products that make people want to buy up to a more expensive fare.
Air Canada makes the claim that “Premium Economy Basic and Business Class Basic will be priced below Air Canada’s existing premium fare options, while retaining the premium seat and onboard service.” However, I suspect that’s not quite intended the way I interpret it.
Obviously airfare pricing is dynamic, but is Air Canada really suggesting that we won’t in some cases see the existing cheapest fare become the new basic fare, and then customers will be stuck paying extra to get the same thing they received with their fare before?
If true, it would make Air Canada the first airline I know of where that’s the case, or where such an assurance has been provided.
Bottom line
Air Canada is rolling out basic premium fares, with the introduction of business class basic and premium economy basic. This matches the general industry trend that we’ve seen, whereby “basic” fares are no longer just reserved for economy.
The argument is always that these fares are intended to give consumers more choice, and pay only for the things that they value. However, the real motivation is typically to extract as much revenue from each passenger as possible, and to create punitive fare categories that make people want to buy up to a more expensive fare.
What do you make of Air Canada’s new basic premium fares?
Air Canada is the best airline in the world.
This just makes me happy I get to pay more
Sir, if your words are sincere, you are a fool. No rational actor rejoices in paying a higher price for a diminished commodity. If, as I suspect, you speak in irony, then I applaud your bite. It is not the "invisible hand" at work here, sir, but a direct reach into your pockets.
When merchants assemble in joint ventures to strip away standard comforts—demanding extra coin for the simple privilege of choosing your own seat...
Sir, if your words are sincere, you are a fool. No rational actor rejoices in paying a higher price for a diminished commodity. If, as I suspect, you speak in irony, then I applaud your bite. It is not the "invisible hand" at work here, sir, but a direct reach into your pockets.
When merchants assemble in joint ventures to strip away standard comforts—demanding extra coin for the simple privilege of choosing your own seat under the pious falsehood of "giving you choice"—they do not serve the public. They engage in precisely the sort of market contrivance I warned against in 1776.
This is less the Invisible Hand and more the Visible Finger, at least in part.
My solution is to keep avoiding AC.
Absolutely brutal execution with no PR and insulting passengers by telling them "this is a lower-priced option now", while just making previous fare classes (Standard/Latitude) for J more expensive than yesterday. Outside of the 'claims' issues under the CPA, its just awful decision-making on AC's part.
Just like during the FA strike, this is a very opportune time with half the year left for non *A competitors to offer 1:1 status match.
The fact they had to list “on board” meals is worrying!!!
You will soon have to pay for food on a long haul flights.
Eh, probably not. They operate domestic business class flights, which have free onboard meals in business but not in economy.
What's next, "basic" First Class fares?
How about an Economy/Basic booking on Four Seasons Yacht Club? =)
(Already is the initial thing you said; 'Business' and 'First' are interchangeable in this context.)
No, no, no... let's get super-technical... it's officially now the "Air Canada Signature Class" cabin, formerly known as "International Business Class." Calm down, av-geeks.
Have you checked out Delta's business fares!
If we can agree that the airline industry is very competitive and genuinely works on low margins, the Air Canada press release has to be correct and the argument about fare families being a way of increasing fares must be a load of nonsense.
I've been tracking intra-Europe fares for a good 20 years now and today's unchangeable LH 'business basic' fares are often cheaper in nominal terms, let alone inflation-adjusted ones, than 'traditional' (change...
If we can agree that the airline industry is very competitive and genuinely works on low margins, the Air Canada press release has to be correct and the argument about fare families being a way of increasing fares must be a load of nonsense.
I've been tracking intra-Europe fares for a good 20 years now and today's unchangeable LH 'business basic' fares are often cheaper in nominal terms, let alone inflation-adjusted ones, than 'traditional' (change dates for a fee) economy on the same routes before the pandemic. I don't need any flexibility when making a reservation two weeks ahead for a trip to visit family during which I'll be carrying my laptop, why should I be paying for the cost of them flying empty seats created by other pax taking advantage of a 'no change fees' default?
I'd like to see those intra EU J fares that are nominally lower than in the past because I feel like these days economy costs way more than what used to be the price of business just a decade ago. Nominally - if we're talking about inflation adjusted fares, then I'm willing to accept your argument, but on the nominal level it just doesn't hold, at least on my usual routes.
Random example: MAN-KRK and back in October is €470 all in. I do remember Y prices in the region of €450, though I can't be 100% sure of the season unless I go back to my old tickets. There will be cheaper examples - e.g. the 'blind booking' business offers from Germany and Austria start at €229 return...of course there'll also be some more expensive examples.
Definitely cheaper in inflation-adjusted terms though.
That should've read MAD-KRK. Checking again, MAN-KRK is available for ca. £475.
Booked a BA flight from Vancouver to LHR in business class and had to pay for seating. It’s definitely a cash grab!
You've always had to pay for a J seat on BA if you book in advance.
If this is happening right now, I can't even imagine what's going to happen when the ex-AV CEO takes over AC :'( sad days ahead...
What is your concern with the AV ex-CEO? I'm only asking because I don't/haven't pay/paid much attention to AV (and little attention to AC, for that matter), so I'm just wondering.
Avianca had been on the brink of collapsing when Mr VdW joined them, I can't imagine the board having told him to make passenger experience his top priority in the circumstances.
Throwawayname, are you the self-proclaimed 'resident Latin America expert'? Also, based on you two seemingly having the same talking-points on the AR topic, are you the same as 'PM' at LALF?
The UK miles and points community is tiny - I know who that person is but I am not them!
I'm definitely no Latin America expert, and have spent virtually zero time in Central America, but I do travel to the Southern Cone every now and then.
Oh, you're both UK-based. And, to be so 'knowledgeable' on Argentina. Huh. Wild. (Like, did you guys literally serve there, pardon, in the Falklands, in the 80s?) Well, as I am based in NYC, and was in MIA, it's *slightly* shorter distance for me.
"Avianca had been on the brink of collapsing when Mr VdW joined them, I can't imagine the board having told him to make passenger experience his top priority in the circumstances."
Thank you, Throwawayname.
Can Air Canada even get more basic?
Like it's already beyond bare bones.
So we have UA, DL and now AC roll out basic business class fares. What I find most interesting is that for DL, they pretty much stripped all the premium ground services from their basic fare - no Delta One check-in, no lounge access at all, etc. At least with AC and UA, you still get the premium check-in and "regular lounge" access (i.e. - no Polaris or Signature).
While I am not a fan...
So we have UA, DL and now AC roll out basic business class fares. What I find most interesting is that for DL, they pretty much stripped all the premium ground services from their basic fare - no Delta One check-in, no lounge access at all, etc. At least with AC and UA, you still get the premium check-in and "regular lounge" access (i.e. - no Polaris or Signature).
While I am not a fan of the unbundling, I think at least AC and UA are reasonable. I still can't fathom that on a business class fare, even basic, DL can't give at least SkyClub access.
I thought it was the Middle East carriers, like Emirates and Qatar, that started this trend. They introduced Special, Saver, Flex, Flex Plus at EK, and Classic, Comfort, Elite at QR. The issue is that they basically kept prices the same for the entry-level fare, removed lounge, seat, chauffeur service, etc., then increased fares for adding those back-in. If we don't regulate un-bundling out of existence, it will become the new norm. Don't buy the...
I thought it was the Middle East carriers, like Emirates and Qatar, that started this trend. They introduced Special, Saver, Flex, Flex Plus at EK, and Classic, Comfort, Elite at QR. The issue is that they basically kept prices the same for the entry-level fare, removed lounge, seat, chauffeur service, etc., then increased fares for adding those back-in. If we don't regulate un-bundling out of existence, it will become the new norm. Don't buy the corporate sane-washing of 'more choice.' It's a net loss for consumers; a cash-grab for executives/shareholders. Boo hiss.
One can bring some glue and glue oneself to the seat cushion .
You are insane.
Stay gold.