Canadian Mileage Drama: Aeroplan Owner Rejects Air Canada Bid, Talks With Oneworld
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
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.
Featured image: Aimia CEO Jeremy Rabe, from YouTube / Aimia
Welcome to The Points Guy!
Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new card in your first three months of card membership. Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants with your card within the first 3 months of membership.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new Card in your first 3 months.
- Plus, earn up to $100 back in statement credits for eligible purchases at US restaurants with your card within the first 3 months of membership.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees