Aeroplan launches its own charter airline

MONTREAL – Aeroplan aims to expand into the aviation sector by offering charter flights to its most popular destinations as the frequent flyer program prepares the end of its exclusive partnership with Air Canada in 2020.

"We have roads where" says Jeremy Rabe in his first interview since taking office in May as CEO of parent company Aimia Inc.

"We can optimize routes, we can make sure these planes fly in places where people really want seats and again it's a big difference.

The Montreal-based company is gearing up for July 2020, when its 30-year partnership with Air Canada expires as the airline launches its own loyalty program.

Industry badysts say the company's long-term prospects are unclear. In the first quarter, it reduced its costs by $ 70 million. But CIBC World Markets' Stephanie Price estimates that the company will need $ 200 million more per year to purchase market-rate flights after 2020.

When its exclusive partnership with Air Canada ends, Aeroplan members will be able to purchase seats Anytime, Anywhere, instead of being limited to Canada's largest airline and Star Alliance partners.

An Aeroplan survey reveals that 72% of members say that expanding takeovers to an airline would be a "big improvement".

Aeroplan is working to register its preferred airline partners and is also introducing several new program features that will create a more flexible program and a better experience for members.

Starting in September, Aeroplan will open a new online travel booking. This tool will allow members to earn miles by renting a car or booking a hotel in cash.

Within two years, the miles, alone or in combination with money, will be reimbursed. for a variety of travel, leisure and entertainment experiences, including concerts, spas and private jets.

Additional digital tools, supported by artificial intelligence and machine learning, will enhance experience by anticipating members' preferences.

"So we're going to be creative, for example, with cool destinations where you might consider traveling.

Aeroplan plans to offer redemptions from the same mileage levels for approximately 95 per cent of its flight reimbursements. It answers one of the biggest questions members have about how Aeroplan will be in 2020.

It also provides for a point transfer program in 2020 that will allow members to convert Aeroplan Miles. In Loyalty Programs of Nearly 20

Rabe minimized the risk that the transfer program would be a way for members to end their loyalty to Aeroplan.

"If members see that we are going to have an incredible loyalty program, differentiated value, flexibility and experience, I am confident that members will continue to participate in the program and that it will be the best loyalty program in Canada.

resigned on the eve of the company's annual meeting in April, when Rabe was elected to the board as a representative of Mittleman Brothers LLC, which had criticized Aimia's performance.

as Founder and Managing Partner of On Point Loyalty, an investment and advisory firm focused on the airline loyalty industry.

After only six weeks of work, the director of experienced loyalty programs said that he foresaw He promotes value creation for members and partners and becomes a more entrepreneurial organization able to react more quickly.

He also focuses on building relationships with his partners to demonstrate the value of working with Aeroplan.

Over the years, we've seen some great developments within Aeroplan, but when I look at what happened with Air Canada, I'm not sure we've been successful at the very least. our abilities. "