Air Canada (AC.TO) is taking another step in its plan to launch its own loyalty program in 2020.
The company said on Tuesday it’s launching a Request for Proposals from “key” financial institutions that are interested in partnering on a co-branded credit card.
“I think it’s an attractive program,” said JC Clark CEO Colin Stewart in an interview with BNN. “Air Canada is obviously a dominate airline here, and I think probably all the financial institutions will look at potentially putting in a bid to get involved with them.”
In early May, Air Canada announced it would establish its own rewards program when its agreement with Aimia, the operator of Aeroplan, expires.
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READ MORE: LOYALTY PROGRAMS
The airline also announced new long-term financial targets on Tuesday.
It expects earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent margin to range from 17 percent to 20 percent for the period 2018-2020. Earlier, it had expected those margins to be between 17-19 percent for 2018.
Free cash flow for 2018-2020 is expected to range between $2 billion to $3 billion.
Airlines have been trying to maintain leaner operations, even as they invest in upgrading their back-end technologies and better customer services in a competitive industry.
"We see many opportunities ahead, including the introduction of more efficient narrow-body aircraft into the mainline fleet," Chief Executive Calin Rovinescu said in a statement ahead of the company's investor day meeting.
-- With files from Reuters
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