Lufthansa has overtaken Air France-KLM Group to become Europe’s biggest airline, grabbing the top spot held by the Paris-based company since a merger of the French and Dutch flag-carriers in 2004. Having closed in on its rival in 2017, the German carrier finally cruised past last year after boosting passenger traffic 9%, almost three times the pace of growth at its rival. Air France-KLM is also being reeled in by BA owner IAG, which expanded twice as fast in 2018. The changing hierarchy marks the culmination of mostly organic growth at Lufthansa, aided by the purchase of smaller brands Swiss, Austrian and Brussels and the expansion of discount unit Eurowings, which grew by almost one-quarter last year. Lufthansa also secured a key deal with pilots in 2017 and last year benefited from unexpectedly high demand in first class. Air France-KLM, by contrast, has suffered years of strife as workers resist overhaul plans, leading to successive management shakeups as its French state shareholder balked at sometimes violent labor unrest. The French arm was also affected by air-traffic control strikes last year, as well as the nationwide Yellow Vests anti-government protests. Lufthansa is now 0.2% bigger than Air France-KLM when measured by traffic or revenue passenger km.<br/>
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Air Canada has completed its purchase of the Aeroplan loyalty program from Aimia Inc., assuring customers their miles will be honoured on a "one-to-one basis" when the airline's new rewards program launches in 2020. "Air Canada is creating an industry-leading loyalty program that aims to provide unmatched flexibility, choice and convenience for customers when it debuts in 2020," CE Calin Rovinescu said Thursday. The deal marks a reunion for Aeroplan and Air Canada, which spun off the points program in 2005 under a restructuring. It will also mean better access to customer data for Air Canada -- Aeroplan has about five million members -- and positions the Montreal-based airline to compete against the PC Optimum loyalty program run by Loblaw Companies, which boasts about 16m members. Aimia used the majority of its gross proceeds from the sale, which totalled roughly $497m after adjustments related to working capital, to repay debt. Aimia said about half of its 1,500 employees will move to Air Canada as a result of the transaction.<br/>