Air Canada to cut ties with Aeroplan and start own loyalty program
Aimia, operator of loyalty program Aeroplan, plunged as much as 65% after Air Canada said it will cut ties with the company in 2020 and launch its own rewards plan. Aimia faces the risk that other Aeroplan members may decide to terminate their membership because Air Canada is the "backbone," said Martin Landry, an analyst with GMP Securities. The airline amounts to about 10% of Aimia’s revenue, but more than 75% of Aeroplan miles are redeemed with the carrier. Air Canada’s contract with Aimia runs through June 29, 2020. Until then, Aeroplan members will be able to earn and redeem miles under the program. Air Canada expects the net present value of the program repatriation to exceed C$2b (US$1.5b) over 15 years. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-12/star/air-canada-to-cut-ties-with-aeroplan-and-start-own-loyalty-program
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Air Canada to cut ties with Aeroplan and start own loyalty program
Aimia, operator of loyalty program Aeroplan, plunged as much as 65% after Air Canada said it will cut ties with the company in 2020 and launch its own rewards plan. Aimia faces the risk that other Aeroplan members may decide to terminate their membership because Air Canada is the "backbone," said Martin Landry, an analyst with GMP Securities. The airline amounts to about 10% of Aimia’s revenue, but more than 75% of Aeroplan miles are redeemed with the carrier. Air Canada’s contract with Aimia runs through June 29, 2020. Until then, Aeroplan members will be able to earn and redeem miles under the program. Air Canada expects the net present value of the program repatriation to exceed C$2b (US$1.5b) over 15 years. <br/>
