| Type | Public |
|---|---|
| Traded as | TSX: AIM |
| Industry | Marketing/Consumer Discretionary |
| Headquarters | Montreal, Quebec, Canada |
| Key people | Kevin O'Brien, Vince Timpano |
| Website | www.aimia.com www.aeroplan.com |
Aeroplan is a Montreal, Quebec, Canada based coalition loyalty program [1] owned by Aimia (TSX: AIM), a global loyalty management company. The Aeroplan Program was created in July 1984 by Air Canada as an incentive program for its frequent flyer customers. There are approximately 4.5 million active members in the program.[2]
In recent years, Aeroplan has evolved into a loyalty marketing with retail partners such as:Esso, Home Hardware, Sobeys, Thrifty Foods, Nestle Canada and others. Aeroplan is also used by Air Creebec, Canadian North, Calm Air, and First Air.[3]
Many Aeroplan members collect miles via credit cards. Credit cards were originally allocated to CIBC and Diners Club/enRoute, but it was later offered to AMEX Bank of Canada, while Diners Club withdrew from the program.[4]
In 2010, over 2 million rewards were issued to members including more than 1.4 million flights on Air Canada and Star Alliance carriers which offer travel to more than 1,000 destinations worldwide.
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From the Aeroplan program creation in 1984 its operations were fully integrated with those of Air Canada. In 2002, Aeroplan was spun off as a wholly owned subsidiary of Air Canada.
In June 2005, Air Canada's parent company ACE Aviation Holdings sold 12.5% of Aeroplan for $250 million through an initial public offering creating the world's first publicly traded loyalty program - Aeroplan Income Fund.
On December 20, 2007, Aeroplan Income Fund acquired Loyalty Management Group, a loyalty marketing and customer driven insight and analysis business that owns and operates Nectar, the UK's leading coalition loyalty program.
On May 28, 2008, ACE Aviation Holdings disposed of its remaining holdings in the fund.[5] As such the Aeroplan program is no longer under direct control of Air Canada.
Initially created as an income trust, Aeroplan Income Fund converted to a public corporation on June 25, 2008 and subsequently changed its name to Groupe Aeroplan Inc. On October 5, 2011, Groupe Aeroplan Inc. changed its name to Aimia [6]
Air Miles is Aeroplan's main competitor as a Canadian-based travel rewards loyalty program, however it is not an airline frequent flyer program per se. HBC Rewards is also a competing non-airline rewards loyalty program.
As of January 1, 2007, miles will expire seven years after they are earned. Also, in order to keep miles from expiring, activity on an Aeroplan account is required at least once a year.[7]
There are 4 levels of membership in Aeroplan: Basic, Prestige, Elite, and Super Elite; the latter three are the "Top Tier" membership levels. These Top Tier levels provide travel benefits such as upgrades, lounge access, priority services (e.g. check-in, luggage handling) and more. In order to qualify for one of the three Top Tier levels, the member must earn a certain number of "status miles" or fly a certain number of "status segments" in a given calendar year (thus qualifying that member for the next benefit year). Prestige members have Star Alliance Silver status while Elite and Super Elite members have Star Alliance Gold status. As of January 16, 2006, there were approximately 4.9 million Basic members, 57000 Prestige members, 68000 Elite members, and 9000 Super Elite members.
Air Canada Status Miles are calculated on an annual basis (January 1 to December 31) to determine Aeroplan Membership Status for the following benefit year (March 1 to February 28). The qualification levels for 2010 Air Canada Top-Tier status are as follows:
Air Canada Prestige: 25,000 Aeroplan Status Miles or 25 Status Flight Segments
Air Canada Elite: 35,000 Aeroplan Status Miles or 50 Status Flight Segments
Air Canada Super Elite: 100,000 Aeroplan Status Miles or 95 Status Flight Segments
1. Earn Aeroplan Miles with Air Canada[8]
For travel on flights within Canada and between Canada and the Continental U.S.A. (including Hawaii), 25% of miles flown will be earned for Tango Class, 100% of miles flown will be earned for Tango Plus and Executive Class Lowest and 150% of miles flown will be earned for Executive Class Flexible.
For travel on flights for all other destinations worldwide, 100% of miles flown will be earned for Tango Plus, 125% for Executive Class Lowest and 150% for Executive Class Flexible.
2. Earn Aeroplan Miles when booking from AirCanada.com[9]
Earn up to 1 Aeroplan Mile for every dollar spent when you purchase an eligible ticket at aircanada.com (Canadian and U.S. Edition only).
Earn 1 Aeroplan mile for every 3 dollars spent when you purchase an eligible Flight Pass at aircanada.com (Canadian and U.S. Edition only).
3. Other partners[10]