In a shocking announcement today, Air Canada said that it will end the airline's exclusive contract with Aeroplan provider, Aimia, and go it alone, launching a new programme in 2020. "Strengthening Air Canada's customer relationships" and being able to "deliver a more consistent end-to-end customer experience" were cited as reasons for the decision.
"Our relationship with our more than 45 million customers sits at the core of Air Canada's ongoing transformation as we continue to grow our business beyond the 200 destinations that we already serve, and work to become a global champion," said Calin Rovinescu, president and chief executive officer. "This decision is the right one for our customers, our employees and our shareholders."
"The new program, launching in 2020, will offer additional earning and redemption opportunities, more personalized service and a better digital experience for Air Canada customers," said Benjamin Smith, president, Passenger Airlines.
Aeroplan, launched by Air Canada in 1984, was spun off from Air Canada in 2002 as a wholly owned subsidiary, and has been owned and operated by Aimia for almost 10 years.
Aeroplan members are currently unaffected and can continue to earn and redeem Aeroplan miles until the transition, and Air Canada intends to continue to offer redemption seats to Aimia for Aeroplan members, post 2020.
"Similar to all of Air Canada's North American peers, by managing our own loyalty program, we will be able to take better care of our customers by making decisions in real time that address specific needs," added Mr. Smith. "We're excited to take this next step that delivers on our promise for continued investments in the customer experience."
Air Canada's exclusive contract with Aimia remains in effect until its June 29, 2020 expiration date and Air Canada is committed to business as usual by working closely with Aimia with the objective of providing consistent service for Aeroplan members.
During this period, Aeroplan members can continue to earn and redeem miles in accordance with the Aeroplan program.
Planned Changes
- Before the new Air Canada program launches in June 2020, members will be able to earn and redeem Aeroplan Miles for Aeroplan Rewards, including flights with Air Canada and our Star Alliance partners in accordance with the Aeroplan program.
- After June 2020, miles earned from Air Canada and Star Alliance flights will be credited to the new program, with customers able to redeem those miles for rewards including Air Canada and Star Alliance partner flights.
- Aeroplan miles earned up to June 2020 will stay in Aeroplan members' accounts, and will continue to be subject to the conditions of their program.
- Air Canada intends to continue to offer Aimia redemption seats for Aeroplan members after June 2020, with pricing competitive with other third-party rewards programs.
- The airline's most frequent flyers will continue to enjoy Air Canada Altitude status recognition and its associated range of travel privileges, based on their annual flight activities with Air Canada and the Star Alliance member airlines. All Million Mile program qualification activity and status will also be honoured in the new program.
Air Canada intends to implement near-term improvements to Air Canada Altitude and other elements of the customer experience.
"Doing the right thing for Air Canada's customers throughout this transition period will be our guiding principle," said Mr. Rovinescu.
Air Canada is also stating that the new program will be good for the airline's financial performance, providing Air Canada their business partners with significant growth opportunities.
There are bound to be significant costs associated with this change and greater detail concerning the financial benefits expected to be realized, as well as the transitional costs, will be provided at Air Canada's Investor Day on September 19, 2017.
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