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What is the actual dollar value of an Aeroplan mile?

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Old Oct 29, 08, 8:38 pm
#1
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Join Date: Oct 2008
Location: YEG
Programs: NWA Platinum, Air Miles
Posts: 7
What is the actual dollar value of an Aeroplan mile?

Does anyone have a valid estimate of this?
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Old Oct 29, 08, 8:41 pm
#2

Join Date: Nov 2004
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i think it's between 0.07 ..0.10 cents a mile
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Old Oct 29, 08, 8:48 pm
#3

Join Date: May 2003
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Originally Posted by baus View Post
Does anyone have a valid estimate of this?
The value is highly subjective, it depends on how you value and spend the miles.

Some people who fly a lot do not want to spend their AP miles on more travel, they may spend on toasters and TVs. Others will use the AP miles to book a Star Alliance long haul holiday in Business or First Class, or some may use them for short haul flights.

Only you can determine what is a valid estimate to you.

FWIW, I use mine for long haul (NA to NZ and back) trips as well as short haul for friends and family. My short haul destination or departure point is very expensive in actual $$ terms, so 15,000 miles becomes good value.
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Old Oct 29, 08, 8:51 pm
#4

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Originally Posted by baus View Post
Does anyone have a valid estimate of this?
It depends on whether you are a buyer or seller.

If you can trade 25,000 miles for a $500 ticket... then maybe they are worth $0.02 only. On the other hand, if you can trade 85,000 miles for a $6,000 J class ticket to Europe, then maybe they are worth closer to $0.07 each.
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Old Oct 29, 08, 8:55 pm
#5
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Originally Posted by Seat13F_AC_CRJ View Post

On the other hand, if you can trade 85,000 miles for a $6,000 J class ticket to Europe, then maybe they are worth closer to $0.07 each.
I beg to disagree.

You can't price at the full J/C/Z price, because it is a very restricted ticket. I would not even price it as U/M fare values.
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Old Oct 29, 08, 8:59 pm
#6

Join Date: May 2003
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Originally Posted by Seat13F_AC_CRJ View Post
It depends on whether you are a buyer or seller.

If you can trade 25,000 miles for a $500 ticket... then maybe they are worth $0.02 only. On the other hand, if you can trade 85,000 miles for a $6,000 J class ticket to Europe, then maybe they are worth closer to $0.07 each.
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13F
Or 100,000 for a $12,000 J ticket to NZ on NZ then 12c or $0.12, but not 0.12 cents a mile
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Old Oct 29, 08, 9:01 pm
#7
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The best criterion I can think of AC's own: it offers a choice of miles or cash in compensation for all sorts of problems.

It appears that AC's exchange rate is 2.67 cents/mile. Arguably a high value. But then, if AC is to support the profitability of Aeroplan's smoke and mirrors game, the price that AC pays them has better be high. And if Aeroplan is make a profit benefits better cost them significantly less. These toaster awards/LG LCD TVs probably value the mile at less than 1 cent.

Anyway, reminds me of these banks, which managed to look good for quite a while without really contributing much value to the real economy. Sooner or later however, people end up agreeing that the king is naked. While before they decided to do like everybody else, this is, not to believe their own eyes.

Sooner or later, Aeroplan will end up in the same way and for the same reason: because the real value of the services it provides to society is insignificant in relation to the monies that it handles.
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Old Oct 29, 08, 9:46 pm
#8

Join Date: Jul 2008
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I'm happy to hear/read the value of a mile is still highly debatable. Otherwise, Revenue Canada (or CRA) may start treating these as taxable benefits. Let's keep 'em guessing!
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Old Oct 29, 08, 10:03 pm
#9

Join Date: Feb 2007
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Originally Posted by bub_lee View Post
I'm happy to hear/read the value of a mile is still highly debatable. Otherwise, Revenue Canada (or CRA) may start treating these as taxable benefits. Let's keep 'em guessing!
It seems to me many years ago that CRA (then Revenue Canada) tried to make the point that FF points earned on travel paid for by an employer were indeed a taxable benefit if they were redeemed for personal use. I think they quickly backed off when they realized that any kind of attempt at enforcement would be a lost cause.

I also recall reading a news report to the effect that the BC gov't sent a letter to either Canadian Airlines or AC pointing out their policy that points earned by gov't employees on gov't business would acrue to the benefit of the gov't. The airline replied that with the utmost respect, their policy was that the points accrue to the bum in the seat.

As far as value is concerned, the maximum value appears to occur when you are prepared to redeem points for merchandise. If you want to redeem them for travel the value is something close to zero unless you are prepared to settle for traveling somewhere you don't want to go, on a day you don't want to travel. I find that if you go into it with that attitude you won't be so PO'd in the end.
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Old Oct 29, 08, 11:37 pm
#10
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Originally Posted by Sopwith View Post
As far as value is concerned, the maximum value appears to occur when you are prepared to redeem points for merchandise.
Really?

For merchandise, the value is typically less than 1 cent/mile. You seriously think for travel it's even less?
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Old Oct 29, 08, 11:39 pm
#11

Join Date: Mar 2007
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As compensation for being treated like a leper with the plague, Air Canada offered me the choice of $200 credit or 15,000 aeroplan miles. Do the math... 1.3 cents per mile... and that was about a year ago. I'd say it's under 1 cent per mile now.

Of course it all depends on too many things to say this figure applies to everyone... If you are flexible in your dates, times and routings and if you use the points on a Star Alliance partner (where you don't have to pay the fuel surcharges like on AC)... it is likely worth 2 cents a mile... MAYBE 3 cents.... but that might be stretching it.

Basically when you are the only significant frequent flyer airline program in your country, you can cheap the miles as much as you like.... and they have!
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Old Oct 29, 08, 11:50 pm
#12
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You sure you were plague-free?

BTW, welcome to the zoo.

(We were offered $75 or 2500 miles.)
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Old Oct 30, 08, 12:32 am
#13

Join Date: May 2008
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Originally Posted by ottawop View Post
Basically when you are the only significant frequent flyer airline program in your country, you can cheap the miles as much as you like.... and they have!
How did you figure that? How does AC cheap the miles compared to other airlines? As far as I can determine, other airlines reward the same miles and used similar reward charts.

I see the miles are worth its maximum value when you redeem for NA to Asia or something, 100,000 miles for first/business class. I use the full Y to determine its value because that's what I paid using SWU's. I wouldn't use the points for anything less that that, which is around 3+ cents per mile

Also, I don't understand why people complain not getting the itinerary or dates they want. Getting a reward seat on AP from NA to Asia is a lot easier than on Cathay or Singapore!

Last edited by Queen438; Oct 30, 08 at 12:38 am
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Old Oct 30, 08, 6:41 am
#14
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Like Taupo, I receive the maximum value from the AE miles when redeemed for premium class tickets. True, these are not fully flexible tickets, but still a $15,000 first class ticket to Asia is a first class ticket to Asia. And at 110K AE miles, that's a lot more than the 1-cent to 1-3/4 cents some AE partner paid to actually purchase the AE mile I have earned. (AE actually pays the airline about 10% of the full fare rate on such awards, so it still makes a bit of profit.) But like everything in life, the value of something is very much in the eye/mind of the person desiring the item. (It seems the actual cost of making or supplying it has very little to do with what it will fetch in the "marketplace".)
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Old Oct 30, 08, 9:18 am
#15

Join Date: Dec 2007
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I just redeemed some points for a couple of hotel stays. Given the regular rates of the hotels, exchange rate of Euro at the time etc I figure I got about 1.1 to 1.2 cents per mile.
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