Our journalist’s position on credit cards is simple: if you need one, you shouldn’t have one, and if you don’t need one, you should have several.
BMO Bank of Montreal is looking to acquire Air Miles, which was on the verge of bankruptcy. However, this situation had raised doubts about the risk of losing the points accumulated. What happens in the event of bankruptcy? On Sans réserve, Jean-Maximilien Voisine, president and founder of Milesopedia, discusses the subject with Luc Ferrandez. Listen to his full explanation…
The Air Miles rewards program, owned by U.S.-based LoyaltyOne, is being acquired by BMO, the financial institution announced in a statement Friday morning. This acquisition was proposed by BMO in connection with LoyaltyOne’s Companies’ Creditors Arrangement Act (CCAA) proceedings before the Ontario Superior Court of Justice. The transaction, the amount of which was not disclosed, is subject to court and regulatory approvals. Air Miles program president Shawn Stewart assures that this does not affect members’ Air Miles reward balances or their ability to [en] earn and [en] redeem . BMO has signalled its commitment to strengthening its offering to Canadian consumers and businesses if it is able to bring the Air Miles business from the U.S. back to Canada. Warning signs The pandemic was difficult for Air Miles, explained on the airwaves of ICI RDI the president and founder of Milesopedia, Jean-Maximilien Voisine, because they do business with local businesses where there was no traffic . The exodus of users, however, had already been underway for several years, Voisine added. In June 2022, Sobeys (IGA), Air Miles’ main partner, announced its intention to withdraw from the program, a decision that takes effect on March 22. Since then, the Milesopedia site has seen more traffic for tips on how to redeem points, its president said. As a result, people are in a hurry to use their points, accelerating the downfall of the Air Miles rewards program, he argued. Other companies such as Jean Coutu, Rona and the LCBO (the equivalent of the SAQ in Ontario) have also dropped out of the program. In the case of Jean Coutu, the withdrawal will take effect in the spring. Rona and LCBO have left the Air Miles card behind in 2021. There will always be programs. There are about 20 large programs in Canada, so people will have to make choicesexplained Jean-Maximilien Voisine. The loyalty program has 10 million active member accounts. BMO and Air Miles have been partners since 1992. With information from The Canadian Press