AC To Launch Its Own Loyalty Program In 2020

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As of 30JUN, 2020, Aeroplan will no longer be the loyalty program for Air Canada. The airline has announced a decision to launch its own loyalty program upon the expiry of its commercial agreement with Aeroplan operator Aimia. 

Aeroplan has been independently owned and operated by Aimia for almost a decade. AC says that by operating its own loyalty program it will be better able to strengthen customer relationships and deliver a more consistent end-to-end customer experience. 

"Our relationship with our more than 45 million customers sits at the core of Air Canada's ongoing transformation as we continue to grow our business beyond the 200 destinations that we already serve, and work to become a global champion," said AC CEO Calin Rovinescu. "This decision is the right one for our customers, our employees and our shareholders." 

President, Passenger Airlines Ben Smith says the new program "will offer additional earning and redemption opportunities, more personalized service and a better digital experience for Air Canada customers."

Until the contract expiry date on 29JUN, 2020, then, AC says it is committed to business as usual by working closely with Aimia with the objective of providing consistent service for Aeroplan members.  

During this period, Aeroplan members will be able to continue to earn and redeem miles in accordance with the Aeroplan program. Here are more details of the transition:

·      Until the new AC program launches in June 2020, members will be able to earn and redeem Aeroplan Miles for Aeroplan Rewards, including flights with AC and its Star Alliance partners in accordance with the Aeroplan program.

·      After JUN 2020, miles earned from AC and Star Alliance flights will be credited to the new program, with customers able to redeem those miles for rewards including flights.

·      Aeroplan miles earned up to JUN 2020 will stay in Aeroplan members' accounts, and will continue to be subject to the conditions of that program.

·      AC says it will continue to offer Aimia redemption seats for Aeroplan members after JUN 2020, with pricing competitive with other third-party rewards programs.

·      The airline's most frequent flyers will continue to enjoy Air Canada Altitude status recognition and its associated range of travel privileges, based on their annual flight activities with AC and Star Alliance member airlines. All Million Mile program qualification activity and status will also be honoured in the new program. 

"Doing the right thing for Air Canada's customers throughout this transition period will be our guiding principle," said Rovinescu. 

AC expects the net present value of the program repatriation over a 15-year period to exceed $2 billion. The airline says it will provide greater detail on the financial benefits expected to be realized, as well as the transitional costs, at its Investor Day on 19SEPT. 

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