Air Canada seeks bank partner for $1.6b loyalty plan

Air Canada said it’s seeking a credit-card partner as it prepares its own frequent-flier program after years of relying on Aimia’s Aeroplan. The Montreal-based airline “will be inviting key financial institutions to participate" in a request for proposals, CEO Calin Rovinescu said Tuesday. The co-branded credit card will “yield significant value for us,’’ he later said. Canada’s biggest airline is looking to capture more benefits from a program expected to have a net present value of at least C$2b over 15 years. Aeroplan was once part of Canada’s most popular credit card, Canadian Imperial Bank of Commerce’s Aerogold Visa. The two-decade partnership ended in 2013 when Toronto-Dominion Bank took over as the primary financial partner, though CIBC can still offer Aeroplan cards under a 10-year deal. Air Canada’s contract with Aimia runs until June 2020. The carrier has used the Aeroplan loyalty program, which offers consumers rewards including points toward Air Canada flights, for more than 30 years. Aeroplan is owned and operated by Aimia. “International travel is the most popular reward a credit card loyalty program can offer," Rovinescu said. “This makes us therefore a highly desirable partner as Canada’s largest carrier with the most expansive global network and three powerful hubs.’’<br/>