Air Canada bidding on Aeroplan ‘unusual’: Michael Sprung
Air Canada, along with Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada Corp., are proposing to acquire the Aeroplan loyalty program from Aimia Inc. in a deal valued at about $2.25 billion.
The move comes after Air Canada said last year it will part ways with Aimia in June 2020, as it prepares to launch its own rewards program.
Here’s what the proposed purchase of Aeroplan could mean for the five million members earning points for flying with Air Canada:
What would the Air Canada group’s proposed takeover of Aeroplan mean for my points?
In a statement Wednesday, the consortium said the proposed transaction would allow for “a smooth transition” of Aeroplan members' points to Air Canada's new loyalty program which launches in 2020. The group said the proposed Aeroplan takeover would safeguard members’ points and provide “convenience and value for millions of Canadians.”
What happens to my Aeroplan points?
Nothing. Your Aeroplan balance remains intact, unless you choose to redeem points for flights or other rewards. What changes is how you'll earn points after June 2020 and, possibly, what you can buy with those points.
I've booked an Air Canada flight using Aeroplan points. What happens to my booking?
Members who have already planned trips and booked flights with their Aeroplan points will still be able to travel as planned.
Can I still use Aeroplan points to book Air Canada flights?
Members can use their Aeroplan points to book Air Canada and Star Alliance flights until June 30, 2020. Aimia says it won't stop offering flight rewards before then.
After that, the answer is unclear.
Does this change anything about my Aeroplan credit card?
TD, CIBC and American Express all offer cards connected to the Aeroplan program. The contracts with TD and CIBC expire in 2024, while the American Express contract expires in 2020.
Former Aimia CEO David Johnston previously said he's not worried about those companies following Air Canada's lead.
He said the majority of Aeroplan members earn points not through flying but rather shopping while using those affiliated cards.
With files from The Canadian Press