Following the completion of the transaction with AIMIA to purchase the Aeroplan program, Air Canada and its partners issued a press release confirming important points for Aeroplan members.
Air Canada closes transaction to acquire Aeroplan loyalty program
Here is the highlight of the press release:
Aeroplan Miles will be accepted on a 1:1 basis in Air Canada’s new frequent flyer program when it launches in 2020. Customers can continue to earn and redeem Aeroplan Miles with confidence.
So this is great news that many members of the facebook group “Travel for free (or almost…!) with your points & miles – milesopedia” have been waiting for: there will be a 1:1 transfer of Aeroplan Miles into the new Air Canada program in 2020!
The other points of the communiqué:
Altitude statutes and privileges remain unchanged.
Completion of network and credit card loyalty program agreements with TD and CIBC and Visa Canada for future participation in Air Canada’s loyalty program.
These details were mostly known. TD became Air Canada’s primary bank partner as outlined in the deal.
- Agreement in principle with American Express for continued participation in Air Canada’s frequent flyer program beyond 2020.
Another good news! American Express and Air Canada have reached an agreement in principle for American Express to also participate in the loyalty program Air Canada will launch in 2020! Again, American Express Membership Rewards points holders can rest assured!
So that’s 2 good news:
- Transfer of Aeroplan Miles at a 1:1 ratio to the new program in 2020
- American Express confirmed as partner for future Air Canada program
We are now waiting to hear more about the details of Air Canada’s future loyalty program, including the possible fare structure.
Here is an overview of the program:
The complete press release
Air Canada announced today that it has entered into an agreement with Aimia Inc. the transaction to acquire Aimia Canada, owner and operator of the Aeroplan loyalty program. Air Canada also confirmed that Aeroplan member miles will be accepted on a 1:1 basis in Air Canada’s new frequent flyer program when it launches in 2020.
“Air Canada is creating a cutting-edge frequent flyer program that aims to provide customers with unmatched flexibility, choice and convenience when it launches in 2020. Today’s purchase of Aeroplan marks an important step in this transformation initiative: we are acquiring one of the most successful loyalty programs of its kind in Canada. For many Canadians, with Aeroplan’s privileged access to Air Canada, it is the next best thing to the Canadian dollar,” said Calin Rovinescu, President and Chief Executive Officer of Air Canada.
“In addition, we can now confirm to Aeroplan members that their existing Aeroplan Miles will be accepted on a 1:1 basis in the new program. Finally, with today’s transaction, customers now have confirmation that they can continue to earn and redeem Aeroplan Miles with the assurance that they will retain their current Air Canada Altitude status and privileges.”
Since announcing in May 2017 that it would launch its own loyalty program in 2020, Air Canada has consulted extensively with more than 30,000 customers to determine key features of the program. Customers have expressed a strong preference for using their Aeroplan miles in Air Canada’s new loyalty program, which is expected to be the best in the country. So, judging by their feedback, they’ll be thrilled with the following additional benefits:
- The best award value for Air Canada flights, plus unparalleled access to travel with over 40 partner carriers, including those in the global Star Alliance network;
- Access to Canada’s best travel rewards credit cards from The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and American Express;
- More ways to earn and redeem points for travel, upgrades, experiences, in-flight merchandise and small pleasures;
- A superior experience when traveling with friends and family;
- Everything Air Canada has to offer, in one place, through a new digital experience.
For more information, Air Canada customers and Aeroplan members can visit www.aircanada.com/fidelite.
In conjunction with the completion of the purchase of Aeroplan, Air Canada, The Toronto-Dominion Bank (“TD”), Canadian Imperial Bank of Commerce (“CIBC”) and Visa Canada (“Visa”) entered into a number of commercial agreements relating to and in support of the acquisition, including loyalty program credit card and network agreements for future participation in the new Air Canada loyalty program. In addition, Air Canada has reached an agreement in principle with American Express Canada, a company that issues Aeroplan co-branded products, to continue its participation in the Air Canada loyalty program beyond 2020.
The aggregate purchase price is broken down as follows: $450 million in cash, plus $47 million for pre-signing adjustments. These pre-signing adjustments reflect the assumption of lower than projected net liabilities. The purchase price is subject to certain post-signing adjustments and the acquisition also includes the assumption of the Aeroplan miles liability. TD and CIBC paid Air Canada a total of $822 million. Visa has also made a payment to Air Canada and American Express will do the same if the agreement is signed. In addition, TD and CIBC provided Aimia Canada, now a subsidiary of Air Canada, with $400 million in advance payments applied to monthly Aeroplan mile payments.Come to discuss that topic in our Facebook Group!