Air Canada’s Interesting Domestic Premium Cabin Pricing

Air Canada 787 Dreamliner
Air Canada charges the same for Premium Economy on a wide-body aircraft as Business Class on a narrow-body jet. Photo: Air Canada.

If you’ve flown in Business Class on Qantas’ Boeing 737s and Airbus A330s, you’ll know that there’s a huge difference in the Business Class products on these two aircraft.

Qantas’ narrow-body Boeing 737-800 features basic reclining Business seats with a little more width and legroom, which are suitable for the short flights it generally operates…

Qantas 737 business class
Qantas Boeing 737-800 Business Class. Photo: Qantas.

But the wide-body Airbus A330, also sometimes used for long-haul international flights, offers Business Suites with lie-flat beds. This product is considerably more comfortable and offers more space and privacy…

Qantas Airbus A330-300 Business Class
Qantas Airbus A330-300 Business Class. Photo: Qantas.

Qantas’ Boeing 737s are generally used on shorter domestic routes and the A330s are normally used on international flights. But there are some routes such as Melbourne-Sydney, Melbourne-Perth, Sydney-Perth or Sydney-Auckland where both aircraft types are used. Where this is the case, you would still pay exactly the same price for a Business Class ticket regardless of which aircraft you’re flying on.

Qantas MEL-PER Business pricing
Qantas Business pricing on the Melbourne-Perth route.

Savvy frequent flyers would know to book on the Airbus A330 if possible for a better in-flight experience, but sometimes there are last-minute aircraft changes. Since Qantas regards these products as being identical, it won’t provide any partial refunds or compensation if you book a Business Class ticket on an A330 flight and end up on a Boeing 737.

That’s unfortunate, because in reality the Boeing 737-800 Business Class hard product is closer to Premium Economy on Qantas’ long-haul aircraft. Yet, on routes like Melbourne-Perth where Qantas also offers Premium Economy (on QF9/10), Premium Economy on the Boeing 787-9 is priced lower than Business Class on the Boeing 737-800.

Qantas Boeing 787 Premium Economy
Qantas Boeing 787 Premium Economy. Photo: Qantas.

Air Canada’s pricing strategy

I recently booked a domestic flight on Air Canada, and noticed that the airline has adopted a different pricing strategy on routes where both narrow-body and wide-body aircraft operate.

On some busy Canadian domestic routes such as Vancouver-Toronto, Vancouver-Montreal and Calgary-Toronto, Air Canada uses a mixture of Boeing 737s, Airbus A321s, Boeing 787s and Boeing 777s. The latter two aircraft types are also used for long-haul international flights, so they are fitted with Premium Economy cabins and lie-flat Business seats.

Air Canada Boeing 787 Business Class
Air Canada Boeing 787 Business Class. Photo: Air Canada.

But the Boeing 737 and Airbus A321 jets just have reclining Business Class seats.

Air Canada Boeing 737 MAX Business cabin
Air Canada Boeing 737 MAX Business cabin. Photo: Air Canada.

This narrow-body Business Class product is quite similar to Premium Economy on Air Canada’s wide-body jets.

Air Canada Dreamliner Premium Economy cabin
Air Canada’s Boeing 787 Premium Economy cabin. Photo: Air Canada.

Recognising that there’s a clear difference in the products, Air Canada has chosen to price its domestic airfares accordingly.

For example, if we search for airfares on the Air Canada website from Vancouver to Toronto, Premium Economy on wide-body flights is priced exactly the same as Business Class on narrow-body aircraft (which don’t have Premium Economy). Flights on wide-body jets with lie-flat Business seats are also clearly marked during the booking process.

Sample of Air Canada airfares from Vancouver to Toronto.
Sample of Air Canada airfares from Vancouver to Toronto on the Air Canada website.

This pattern can also be seen on other routes, like Vancouver-Montreal.

AC YVR-YUL fares
Sample of Air Canada airfares from Vancouver to Montreal on the Air Canada website.

It’s the same story for Toronto-Calgary flights.

AC YYZ-YYC fares
Sample of Air Canada airfares from Toronto to Calgary on the Air Canada website.

It’s not clear exactly whether Air Canada would offer compensation if you paid extra for lie-flat Business and your flight was changed to a narrow-body jet with an inferior reclining Business seat. But there is a clear differentiation here between the various products in terms of pricing – which makes sense.

This pricing difference doesn’t translate to award bookings. So if redeeming points (including Virgin Australia Velocity points which can be used for Air Canada flights), keep in mind that there’s a big difference in the product you’re getting depending on the aircraft type – even though you’re paying exactly the same amount of points and taxes!

 

You can leave a comment or discuss this topic on the Australian Frequent Flyer forum.

The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to over 90 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil & Kazakhstan. His interests include economics, aviation & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.
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Hum - read this and the comments about award flights not differentiating between J on wide-body and narrow-body isn't quite right. If booking using AC points I have found big differences due to AC's dynamic pricing BUT I have also found many cases where PE on wide-body is fewer points than Y on domestic routes - something to consider when travelling in Canada if you have AC points.

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Hum - read this and the comments about award flights not differentiating between J on wide-body and narrow-body isn't quite right. If booking using AC points I have found big differences due to AC's dynamic pricing BUT I have also found many cases where PE on wide-body is fewer points than Y on domestic routes - something to consider when travelling in Canada if you have AC points.

It is true that Aeroplan awards are priced dynamically, but I haven't seen a clear correlation between price and aircraft type - it seems a bit more random. When redeeming points with other frequent flyer programs though, the pricing is fixed.

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Yes Aeroplan awards on their own metal is definitely dynamic - from a base rate (ie these are Saver awards and will be available to other programs) to outrageous. Domestic pricing varies by time of day, type of aircraft and non-stop vs itineraries which have one or more stops/flight changes. (I'm no exert - just a causal user of Air Canada and their program).

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The ultimate expression of this concept is arguably WestJet, which always sells all of its narrow body front-of-plane-all-inclusive-class as Premium Economy. It directly competes with Air Canada's narrow body Business Class and is usually the same price. When WestJet operates their 787s domestically is the only time they sell a domestic Business Class product, offering lie flat seats et al.

Besides making for a clear and consistent product offering that's easy to understand, it also avoids the Premium Economy domestic downgrade when travelling on intercontinental itineraries. Where other airlines will sell a Premium Economy seat on the long leg with an Economy seat for domestic leg, WestJet will sell both legs in Premium Economy.

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The ultimate expression of this concept is arguably WestJet, which always sells all of its narrow body front-of-plane-all-inclusive-class as Premium Economy. It directly competes with Air Canada's narrow body Business Class and is usually the same price. When WestJet operates their 787s domestically is the only time they sell a domestic Business Class product, offering lie flat seats et al.

Besides making for a clear and consistent product offering that's easy to understand, it also avoids the Premium Economy domestic downgrade when travelling on intercontinental itineraries. Where other airlines will sell a Premium Economy seat on the long leg with an Economy seat for domestic leg, WestJet will sell both legs in Premium Economy.

Oh, I just looked at that via qantas.com. Yep, you can buy whY+ from Oz to Calgary (for example) via YVR or LAX and pick up the QF codeshare in whY+.

Booking in J you get the warning that YVR-YYC-LAX is in whY+. So technically they downgrade J PAX! Actually “simpler and fairer“ (TM) in a good way.

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An alternative view.

A contemporary pricing and service example is say SYD-PER in J between QF and VA on 11/1 around the same time, QF uses the 332 (lie flat) and VA uses 738 (no lie flat)
QF645 J 11/1 $3271
VA555 J 11/1 $1775

Therefore, using that example, you would pay $1496 more for a QF lie flat than VA.

Most of us have price points, some imposed others self-imposed. The QF fare is therefore $654/hr., VA is $355/hr. - $299/hr. difference.

Someone I know who recently few QF F say SYD-SIN and paid around $7.5k return - or roughly $460/hr.

You can slice and dice the math a few ways - your call!

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An alternative view.

A contemporary pricing and service example is say SYD-PER in J between QF and VA on 11/1 around the same time, QF uses the 332 (lie flat) and VA uses 738 (no lie flat)
QF645 J 11/1 $3271
VA555 J 11/1 $1775

Therefore, using that example, you would pay $1496 more for a QF lie flat than VA.

Most of us have price points, some imposed others self-imposed. The QF fare is therefore $654/hr., VA is $355/hr. - $299/hr. difference.

Someone I know who recently few QF F say SYD-SIN and paid around $7.5k return - or roughly $460/hr.

You can slice and dice the math a few ways - your call!

You'd be pretty annoyed though if you chose to pay $3271 for QF in order to get the lie-flat bed, then Qantas changed the aircraft to a 737-800 and still kept that full amount. (Which is exactly what does happen on a regular basis, since QF doesn't adjust its pricing based on aircraft/seat type.)

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You'd be pretty annoyed though if you chose to pay $3271 for QF in order to get the lie-flat bed, then Qantas changed the aircraft to a 737-800 and still kept that full amount. (Which is exactly what does happen on a regular basis, since QF doesn't adjust its pricing based on aircraft/seat type.)

Absolutely! there is (presently) no safety floor in the local network and due to a lack of competitive forces there probably won't be foreseeably.

Has QF9 ever been subbed on the MEL-PER sector?

The (baby) elephant in the room, has VA considered increasing their premium capacity?

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Has QF9 ever been subbed on the MEL-PER sector?

It's rare, but this flight has occasionally been subbed in the past for an A330 or (rarely) 737 when there was an operational issue or the 787 coming off LHR-PER was needed to turn back around immediately to LHR for whatever reason.

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Absolutely! there is (presently) no safety floor in the local network and due to competitive forces probably won't be foreseeably.

Has QF9 ever been subbed on the MEL-PER sector?

A (baby) the elephant in the room, has VA considered increasing their premium capacity?

Yes, it has happened recently on a couple of days in fact - Qantas Delays/Cancellations

Looks like the MEL-PER sector of QF9 and PER-MEL sector of QF10 is being replaced by a 738 to cover the frame stranded in DFW.

and Qantas Delays/Cancellations

Sunday : It appears that Monday's QF9 MEL-PER & QF10 PER-MEL are again going to be B738 operated. If as previously by a single aircraft, then Melbourne bound passengers will again face a near 6 hour wait in Perth.

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