Author Topic: Air Canada Completes Acquisition of Aeroplan  (Read 318 times)

Offline Planet

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Air Canada Completes Acquisition of Aeroplan
« on: January 10, 2019, 12:22:41 PM »
FAQ: https://www.aeroplan.com/program-updates-faq.do

A new program will be launched in 2020. Aeroplan miles will be transferred 1:1 to the new program. Your status will also remain the same.
In the new program, they will not be partners with Porter Airlines, Flair Airlines, Air Transat.
New partners: Cathay Pacific, GOL Brazil.

Link to the new program https://www.aircanada.com/ca/en/aco/home/frequent-flyer.html

Offline yelped

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Re: Air Canada Completes Acquisition of Aeroplan
« Reply #1 on: January 10, 2019, 04:02:33 PM »
Unfortunately, we can assume that a devaluation will be part of this...

Offline ExGingi

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Re: Air Canada Completes Acquisition of Aeroplan
« Reply #2 on: January 10, 2019, 04:11:32 PM »
A few interesting points from their press release (there's a link on the page linked above):

Quote
Customers expressed their strong preference to use their Aeroplan Miles in the new Air Canada loyalty program, expected to be the best loyalty program in the country
How many other Canadian loyalty programs are they competing with?

And for those that don't yet get how these programs are money makers for the airlines (some emphasis and comments added):
Quote
The aggregate purchase price for the acquisition consists of $450 million in cash plus $47 million in cash for pre-closing adjustments. The pre-closing adjustments relate to lower net liabilities assumed than projected (Expired miles? EG). The purchase price is subject to post-closing adjustments and the acquisition also includes the assumption of the Aeroplan Miles liability. Air Canada received payments from TD and CIBC in the aggregate amount of $822 million (Payments received upfront in excess of cash purchase outlay of the program. EG). Visa also made a payment to Air Canada and assuming completion of the American Express agreement, AMEX will do likewise. In addition, TD and CIBC made payments to Aimia Canada Inc., now Air Canada's subsidiary, in the aggregate amount of $400 million as prepayments to be applied towards future monthly payments in respect of Aeroplan Miles.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Dan

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Re: Air Canada Completes Acquisition of Aeroplan
« Reply #3 on: January 10, 2019, 04:18:46 PM »
How many other Canadian loyalty programs are they competing with?
Airmiles.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline mordechain

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Re: Air Canada Completes Acquisition of Aeroplan
« Reply #4 on: January 10, 2019, 04:39:58 PM »
Air Miles is no longer really a mileage program. Almost everyone in Canada uses it to save a few bucks on groceries.

Offline PlatinumGuy

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Re: Air Canada Completes Acquisition of Aeroplan
« Reply #5 on: January 10, 2019, 07:32:00 PM »
CX was always an Aeroplan partner (on limited routes)
Purpose > Pleasure

Offline Ploni3

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Re: Air Canada Completes Acquisition of Aeroplan
« Reply #6 on: January 11, 2019, 06:16:38 AM »
To the best of my knowledge, Cathay flights are not eligible for Altitude (status) points, currently. If Cathay becomes a fully eligible airline, that would be a material improvement.