# Why I Plan to DUMP my Premium Aeroplan Visa Card



## fraser (May 15, 2010)

I finally emptied my Aeroplan account. I will be cancelling my premium Aeroplan bank credit card. Why? It is called fuel surcharge. When Aeroplan is redeemed for 'reward' flights on Air Canada and several other Star Alliance members, fuel surcharges are added to the cost of the reward ticket.

So, if one was booking Calgary-London (march 5/19) on Air Canada, the fare would be $1013. If one used 60,000 Aeroplan reward points, that reward ticket would cost you $706. $432 dollars of this cost is 'Fuel Surcharge'. Not a very large saving. In fact, the redemption works out to about .5 percent. In the past, we would avoid this by booking Lufthansa to Europe since there was no fuel surcharge. Aeroplan has now 'fixed' this loophole. The only alternative for us is to get a reward flight on a United Flight via Chicago.

Another real example. We were about to book reward tickets this week. 2 people. Calgary-Santiago and return Buenos Aires-Calgary on Aeroplan AC reward tickets. The cost of these free tickets was 120,000 points and just under $1500 in 'fees'. The cost of a regular tickets would be approximately $2800. The redemption value would have been about 1.1 percent.

Instead we routed Calgary-Panama City (stopover)-Santiago and Buenos Aires-Calgary return. All flights United Airlines(and Copa). Cost was 120,000 points and $489. It would have cost an extra $1000. to fly AC, we would not have had the stopover, and the flights were longer. The redemption values works out to a much better 1.9 percent. Fortunately for us, Aeroplan has not figured out a way of adding 'fuel surcharges' to United/United partner flights. Not yet anyway..but stay tuned.

Clearly, the points have more value if you are redeeming business class tickets. Our experience is that business class tickets on Aeroplan/Star Alliance are much, much more difficult to obtain than they once were and often to do not provide business class seating on ALL legs of the trip. Unfortunately, I am no longer in a position to accumulate the large amount of miles that allow us to get business class rewards on flights.

Aeroplan has some changes coming up in Jan. One of those is apparently (so I have been told) a computer 'fix' so that they can add fuel surcharges to all Star Alliance flights-especially United. 

So we look at it like this. We pay $170. year for two premium Aeroplan bank cards. For that, our redemption rate can be as low as .5 percent. We will probably move to a cash back card that gives us 1.5-2 percent return at a much lower card cost and far greater flexibility.


----------



## MoreMiles (Apr 20, 2011)

I love to have More frequent flyer Miles, hehe thus my login ID. You may get some idea from flyertalk.com I used to fly useless flights just to get status miles, Mexican hat dance... an insider trick. 

I agree with you. It's not even worth it now. I would just get Capital One Aspire Travel 2% travel reward MasterCard, with no annual fee (ie. subsidized by sign up and renewal bonus points).


----------



## fraser (May 15, 2010)

That is exactly our plan. Not only is the Capital One less money, I believe that it has some extra insurances attached to it.

We will wait a month or so until the Aeroplan revisions are announced but I am not optimistic. We just got the Chase Marriott Visa to avoid Visa FX exchange fees.


----------



## peterk (May 16, 2010)

Well timed thread. I was thinking about getting the TD Visa Aeroplan when it comes out but now I'm second guessing it. I have an Aeroplan account anyways so still get points when booking flights and buying gas at esso.

Think i'll stick with my 2% cash back on groceries MBNA smart card and 2% on Amazon Visa, which also is my USD no exchange fee card. This whole aeroplan thing seems hardly worth it if the redemption value is going to be 0.5%-1% most of the time.


----------



## dubmac (Jan 9, 2011)

I had a similar expereince about 2 months ago - I booked a ticket Vancouver - Paris Return using airmiles (60,000).
There was a variety of flight -but the Lufthansa flights required something like a 700-800 premium, whereas the UNited flights were much cheaper ($170 for fuel surchange + 30 admin fee) - sooo we went with United, and she had to fly YVR-San Fran (6 hr layover) - Paris. similar of the return flight (6 hrs in Chicago). convoluted, not direct flights. The "advantages" in using aeroplan airmiles has been whittling away in recent years.


----------



## heyjude (May 16, 2009)

I have a CIBC Aerogold Visa and recently booked an Aeroplan open jaw to two European cities for 60,000 Aeroplan miles. Fees were $680. No option to upgrade to business class as six flights are involved and of course the probability of getting business class on all of them is zero. Return flight is Air Canada Rouge (which I'm sure will be pretty basic and cramped). If you don't live in a major hub, you always have difficulty getting direct or business class seats. I have been an Aeroplan member since 1989 and the program has definitely gone down in terms of its value to me. 

I am one of the people who have no other business at CIBC so I fully expect they will shunt my business over to TD. However, I have investments with TD and they have offered me their TD First Class Travel Visa Infinite card for a fee of $0. This will allow me to book any travel I want with the points. I am waiting to see what the new offer is and then I will most likely dump the Aeroplan card.


----------



## fraser (May 15, 2010)

We bank with CIBC...but not much any more (moved all of our investments and our DISA). They also offered us a travel card, not Aeroplan, free for the first year. We declined. 

Waiting to see what Dec/Jan brings. Still looks like Capital One so far.


----------



## bmoney (Jun 22, 2013)

I came to a similar conclusion and settled on TD Infinity Visa as my main card, and I churn CC that offer sign up incentives. It beats trying to jump through hoops collecting points when I can fill out an app and get 20k-30k usually enough for a short haul flight


----------



## Westerncanada (Nov 11, 2013)

bmoney said:


> I came to a similar conclusion and settled on TD Infinity Visa as my main card, and I churn CC that offer sign up incentives. It beats trying to jump through hoops collecting points when I can fill out an app and get 20k-30k usually enough for a short haul flight


Fraser... I highly second Bmoney's opininon.. TD Reward Infinity visa is far superior, you can book on any deal site you want, and 100% of the cost is covered... the biggest perk for us.. is we book here and not only is flight and hotels reimbursed.. so is our spa package, camping fee's, jet ski rentals, water ski/boat rentals, scuba diving. 

I basically get one completely free (-food if its not all inclusive and tips) vacation a year. 

I'm actually getting paranoid the aeroplan card will replace my beautiful TD visa and that scares me! 

I've heard the capitol one is great as well.. but for me personally this is the best Credit Card i've ever owned and will stick with it!


----------



## fraser (May 15, 2010)

Thanks, I will look at that.

What surprises me is when I have looked a few sites such as rewards.ca and they always seem to rank CIBC Infinite Aerogold quite highly. I am not certain why this is.

I suspect their comparison only runs to a cost/points accumulation basis and does not include those pesky add on 'fuel surcharge' when you book many Aeroplan flights.


----------



## Westerncanada (Nov 11, 2013)

fraser said:


> Thanks, I will look at that.
> 
> What surprises me is when I have looked a few sites such as rewards.ca and they always seem to rank CIBC Infinite Aerogold quite highly. I am not certain why this is.
> 
> I suspect their comparison only runs to a cost/points accumulation basis and does not include those pesky add on 'fuel surcharge' when you book many Aeroplan flights.


It typically ranks in the top 3 on most comparison sites: 

http://www.rewardscanada.ca/topcc2013/

I believe the Aspire card has slightly better percentage for redemption etc.. I guess it depends on your personal situation, spend, and what your looking for. 

I spend between 8,000 and $30,000 a month on my card.. with a mix of travel at 3x Points via expedia for td so that add's quite a big chunk of "bonus" dollars. 

Again, if you book through Air Canada or Westjet you can still get additional reward dollars (even through expedia) such as westjet dollars at 2% or aeroplan points depending on what your interested in. 

It's a great program for me personal, as 90% of my CC usage is reimbursed via work.. and I am completely content on one free trip per year as that's generally all I get to take anyway!


----------



## fraser (May 15, 2010)

Just checked-my Visa Aeroplan card is up for renewal ($170) in January. I think I will apply for the Capital One Card now-nothing to loose.


----------



## Ihatetaxes (May 5, 2010)

RBC Avion is not too bad. 4 tickets on AC from YYZ to RSW 140,000 points and $661 in fees. Could lower the fees by flying out Niagara or Detroit but its a pain and with Nexus cards Pearson is quick and easy (40 minutes from my front door to the gate). Plus the last charter I flew I made the mistake of looking at the manufacturing date on the door panel walking onto the plane. I always feel pretty safe on Air Canada and never have problems with delays.

One thing is for sure, flying isn't getting any cheaper, especially out of Toronto.


----------



## Hawkdog (Oct 26, 2012)

I have pretty much just resigned to using my aeroplan points for ESSO gas cards.
The restrictions and fees for flying just don't make it worth it.
The only reason I keep it is I fly a fair amount for work so I get a fair amount aeroplan points for free.


----------



## Hawkdog (Oct 26, 2012)

*promo*

just a FYI,
there is a promo where you can get an air canada 1000 buck card for 122,000 points on the aeroplan website right now.


----------



## fraser (May 15, 2010)

That is better than the .5 cent value on my flight reward.

It works out to .8 cent per point. Not a great return compared to some of the other cards especially when I factor in the $170. charge for 2 cards each year.


----------



## PatInTheHat (May 7, 2012)

I got rid of my card a few years back in favour of the capital one and couldn't be happier.


----------



## PatInTheHat (May 7, 2012)

Hawkdog said:


> I have pretty much just resigned to using my aeroplan points for ESSO gas cards.
> The restrictions and fees for flying just don't make it worth it.
> The only reason I keep it is I fly a fair amount for work so I get a fair amount aeroplan points for free.


I feel I am in the same boat with my remaining points but seems like such a waste to take 0.75 cents when flights return 2-3


----------



## Feruk (Aug 15, 2012)

If your card doesn't get you at least 1.5% return AFTER fees, it's not the card you want.


----------



## Hawkdog (Oct 26, 2012)

PatInTheHat said:


> I feel I am in the same boat with my remaining points but seems like such a waste to take 0.75 cents when flights return 2-3


ya, but if you can never get the flight you want, or the route you want is it really a waste?
personally i am happy taking the loss rather then having to book some milk route that takes longer, or having to fly through the states.

I have never owned a capital one card, but from what has been written here I will look into it. Does anyone have any comments on flight selection using the capital one rewards?


----------



## PatInTheHat (May 7, 2012)

Hawkdog said:


> ya, but if you can never get the flight you want, or the route you want is it really a waste?
> personally i am happy taking the loss rather then having to book some milk route that takes longer, or having to fly through the states.
> 
> I have never owned a capital one card, but from what has been written here I will look into it. Does anyone have any comments on flight selection using the capital one rewards?


You can use capital one points to remove any travel purchase on your CC. I've everything from air fare, hotel bookings to taxi cab rides show up as items you can redeem your points towards. It's really well done.


----------



## Hawkdog (Oct 26, 2012)

PatInTheHat said:


> You can use capital one points to remove any travel purchase on your CC. I've everything from air fare, hotel bookings to taxi cab rides show up as items you can redeem your points towards. It's really well done.


Sounds like a good option, thanks for the info!!


----------

