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Canadian Mileage Drama: Aeroplan Owner Rejects Air Canada Bid, Talks With Oneworld

Aug. 03, 2018
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3 min read
Aeroplan CEO interview plan unveil
Canadian Mileage Drama: Aeroplan Owner Rejects Air Canada Bid, Talks With Oneworld
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Well, that escalated quickly. Last week, we got the news that Air Canada was experiencing potential-breakup regret with its long-term mileage program Aeroplan. Air Canada gathered a few friends and offered to buy Aeroplan from its current parent company Aimia for C$250 million (US$191 million) in cash, plus assuming unredeemed Aeroplan point liabilities which Air Canada says are worth C$2 billion (US$1.54 billion.) The airline won't provide details on the number of outstanding points or the point valuation used to get to this number.

During the 10-day offer period, it seems Aeroplan may have found a few potential alternative partners. So, the Air Canada consortium upped its offer to C$325 million in cash (US$250 million.)

With hours ticking down to Thursday night's deadline, reports emerged about Aeroplan partnering up with the Oneworld Alliance — which includes airlines such as American Airlines, British Airways and Japan Airlines. With this report out, Aeroplan's parent company Aimia went public with its counter-offer: C$450 million (US$347 million) in cash. It seems that was a little too high for Air Canada, so the August 2 decision deadline passed and the consortium's C$325 million offer expired.

Hours later, the saga took another twist as Aeroplan announced a new partnership with regional Canadian airline Porter Airlines. This agreement would go into place in July 2020, just as the Air Canada - Aeroplan divorce finalizes. The airline's existing "VIPorter loyalty program will be converted into Aeroplan Miles" when the agreement becomes effective, but VIPorter would continue to exist as an elite-benefit loyalty program.

Despite this partnership, Aimia is still open to negotiations with Air Canada. In a conference call Friday, Aimia's new CEO Jeremy Rabe confirmed the company is open to further discussions with Air Canada:



We never stop negotiating. Should the consortium want to engage with us in a constructive dialogue, we would be happy to entertain that. At the same time, we feel very confident about our future plans. So either or, we're happy to go down either path.

What's next in the Air Canada-Aeroplan drama? Will Air Canada get the prize? The last two weeks have been full of twists and turns, and there seems to be no end in sight. So, grab a bag of popcorn and let's see how this drama turns out.

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Meanwhile, our advice remains: continue to use your Aeroplan miles where it makes sense to do so. The future is still very uncertain for the program — with the potential for a revenue-based program coming — so this certainly isn't a time to hoard your Aeroplan miles.

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

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  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
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