Aeroplan Adds C$30 Fuel Charge on Air Canada Tickets
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Aeroplan Adds C$30 Fuel Charge on Air Canada Tickets
September 1, 2005

Aeroplan LP, the rewards program that issues air tickets in exchange for points redeemed by consumers, raised booking fees and said it will start collecting a fuel charge on behalf of Air Canada, which faces soaring fuel costs.

Aeroplan will boost its service fee 20 percent to C$30 ($25.37) on Oct. 1, the Montreal-based company said in a statement distributed to Canadian travel writers.

Effective today, Aeroplan said it's also adding a C$30 fuel charge for roundtrip flights booked on Air Canada, the country's largest airline, to destinations in Canada and the U.S. Partners that accept Aeroplan reward flights include Canadian North, Pacific Coastal and Bearskin Airlines.

Aeroplan and Air Canada are owned by Montreal-based ACE Aviation Holdings Inc., which sold a 14.4 percent stake in the program as Aeroplan Income Fund in June.

Air Canada has boosted airfares twice since June 23 to counter record jet fuel prices, which have risen 84 percent in the past year. Jet fuel for immediate delivery at New York Harbor rose to a record $2.37 a gallon today on concerns of shortages due to damage to drilling rigs and pipelines in the U.S. Gulf Coast region caused by Hurricane Katrina.

Aeroplan Income Fund units rose 31 cents, or 2.3 percent, to C$14.01 at 1:52 p.m. on the Toronto Stock Exchange.

Source: http://www.bloomberg.com

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