Aeroplan, a coalition loyalty program owned by Aimia Inc, is soon to be acquired by Air Canada making the members worry about the redemption of loyalty points. Analysts suggest the consumers to not to expect for the same. The deal was seized with a tentative value of $450 million, on 21st August, for selling the rewards program to the conglomerate run by the largest air establishment.
Assuring people about the redemption of their points, Aimia’s Chief Executive Jeremy Rabe articulated about no effect on points for travel deals and products ranging from vacuums to Fitbits.
He said, “If successfully completed, it would safeguard Aeroplan members’ miles, provide you with continued convenience and value, permit you to earn and redeem with confidence and allow for a smooth transition to Air Canada’s new loyalty program launching in 2020.”
This Montreal-based airline is steering with plans of launching its in-house loyalty program by July 2020, which will, in turn, recognize Aeroplan’s points, as stated by the website of Air Canada. Renowned financial institutions TD bank, CIBC, and Visa are the partners in the conglomeration, which will also have a worthy relationship with the Aeroplan program.
Warning about Aimia’s deals might include a “break-up” clause by which Aeroplan’s sales could skyrocket at a cost to Air Canada. He said, “They were just pawns in the negotiation game. This got Air Canada to really come to the table because the last thing they want is five million users trading in their points at a rival airline.”