Air Canada yesterday enabled the conversion of airline tickets to Aeroplan miles instead of only vouchers, and Sebastian covered this potentially cheap way to buy miles previously (read more here).
A LoyaltyLobby reader sent us examples of how Air Canada processed this conversion, and it appears to be slightly off.
You can access Air Canada here.
Note that the prices above and below are in CAD and not USD. The cost of a mile in USD from the example below is 1.54 cents each.
Here’s documentation that a reader sent us when he tried to refund one Air Canada ticket:
CALCULATION OF THE AEROPLAN MILES DOES NOT INCLUDE TAXES:
Aeroplan miles are for sale 3c/mile. If refunded the $171.60 at that rate it would be 5720 miles. 65% bonus would be 9438 miles.
$171.20/0.03 = 5720 miles. 5720 X 1.65 = 9438.
Was only offered 8250 miles.
8250 miles would cost $247.50 without bonus (3c/mile).
8250 miles should cost $148.50 with the 65% bonus. (1.8c/mile)
When you click on THIS TICKET IS NOT ENTITLED FOR A FULL REFUND IT RETURNS THIS LINK:
“Aeroplan Miles – Convert and transfer the remaining value of all tickets and associated services in a booking, minus any taxes, into Aeroplan Miles, and get an additional 65% bonus miles.”
With this information the calculation would be $171.60 total charge minus the taxes of $19.74. The new total without taxes to be converted into aeroplan miles is $151.86:
$151.86 / 0.03c/mile = 5062 miles. Add in the 65 bonus: 5062 X 1.65 = 8352 miles
So I’m short changed 8352 – 8250 miles. Or 102 miles. Maybe AC is rounding to the nearest 250 miles?
ORIGINAL BOOKING WAS A ONE WAY TICKET YYZ-YVR for $171.60 booked late last year.
Ticket was issued before March 1st so any new terms don’t apply to this ticket.
One of the schedule changes was a cancellation and rebooking on another flight number and time the same day and that happened before March 1st.
This should be eligible for a cash/credit card refund but AC is denying the request when calling in multiple times and instead redirecting to apply for a refund online at this link:
Agents say it can take over 6 weeks to get a response when it gets reviewed manually the refund request.
And here’s the response that we received from the Air Canada spokesperson:
You are correct that we do need to assess sales taxes when we convert the ticket value into Aeroplan Miles, so indeed, the value of $151.86 which he calculated is the one which would be converted into miles. (Note that within the next few days, we’ll be updating our flow on aircanada.com to make this breakdown more clear.) To your point, what was presented does seem to be “off” – we’ll follow up with our technology team to see if there’s any issues with our calculation.
I think that it is good that Air Canada now allows you to refund as Aeroplan miles instead of a travel voucher. The airline has been very difficult to deal with actual when it comes to refunds for services it has canceled.
Readers that have tickets with Air Canada to/from Europea Union or to/from/via the United States are 100% eligible for a cash refund in case of canceled or delayed flights. U.S. Department of Transportation (read more here and here), and the European Union (read more here and here) have both reminded airlines to provide cash refunds.