Air Canada Adds Basic Fares to Business and Premium Economy

Following Delta's lead, Air Canada today announced Premium Economy Basic and Business Class Basic. Both charge for changes and advanced seat selection, and checked baggage drops to one piece. The airline's existing premium fare brands are being renamed Standard and Latitude.

Both Basic fares include the same seat, onboard meal service, carry-on allowance, priority boarding and priority baggage handling. However, lounge access is where the two split: Business Class Basic still gets you into Maple Leaf Lounges but not Air Canada Signature Suites, while Premium Economy Basic doesn't include lounge access at all.

Aeroplan earning is unchanged. Both fares earn one Aeroplan point per dollar, and elite multipliers of 2x to 6x still apply. Likewise, both accrue four Status Qualifying Credits per dollar — the same as Air Canada's other premium fares. The exception is eUpgrades, which can't be applied to basic fares.

The new brands are live across the Caribbean, Latin America, Mexico, South America and Air Canada's transatlantic joint venture markets with Lufthansa and United. These are cash fares only, so Aeroplan awards aren't affected.

Andrew's Take

Let's not pretend this is about choice. Air Canada says these will price below today's fares. I'd bet the cheapest business class fare simply becomes the new Basic, and you pay extra to get back what the ticket already included. Paying to pick a seat on a lie-flat is absurd on its face. And since eUpgrades can't be applied to a Premium Economy Basic fare, you'll have to buy up to a Standard fare before your hard-earned upgrades are worth anything.