Air Canada to launch own loyalty program

PROGRAM EXPECTED IN 2020, WILL REPLACE AEROPLAN

Air Canada said Thursday it will launch its own loyalty rewards plan in 2020 and not renew its contract with the company running Aeroplan, sending Aimia’s stock plummeting by more than 50 per cent and angering some points collectors.

The Montreal-based airline says customers will be able to continue collecting Aeroplan points until June 2020, after which miles earned from flying on Air Canada or its 26 Star Alliance partners will be credited to the in-house loyalty program instead. Travellers will be able to redeem those points for Air Canada and Star Alliance flights.

The airline said it intends to continue allowing Aeroplan members to redeem their Aeroplan points for seats on their flights after June 2020. However, Aimia’s CEO said that isn’t certain yet, as there are still a lot of discussions to be had.

Some Aeroplan members didn’t react kindly to the development on social media.

Some were annoyed their Aeroplan points wouldn’t be carried over to the airline’s inhouse program in 2020. Others worried they wouldn’t be able to use Aeroplan points for Air Canada and Star Alliance flights beyond June 2020 and were concerned they’d have to rush to redeem points before it was too late.

This isn’t the only time in recent history Canadians have felt short shrifted by a loyalty program. LoyaltyOne, the company that operates Air Miles, upset consumers when it announced it would change its policy so collectors would lose any miles they don’t use within five years. The policy, which was to take effect Dec. 31, 2016, was cancelled following a consumer backlash.

Aimia CEO David Johnston said in an interview the company is exploring a range of alternatives for its business after Air Canada’s contract ends, including pursuing other partners.

“This is something we’ve anticipated,” Johnston said in an interview on his first day on the job after serving several months on an interim basis. The company announced Wednesday evening that Rupert Duchesne, who has been on medical leave, is retiring from the top role.

He assured the program’s five million customers they can expect a smooth transition.