In a newly approved deal, Air Canada is may soon become the owner of the Aeroplan loyalty program. Air Canada has partnered with Canadian banks and financial institutions to buy out Aeroplan for a cool $450 million, plus nearly $2 billion in liabilities.
Aeroplan is a flyer loyalty program, which allows members to log their miles and redeem them for various rewards, such as plane tickets, gift cards and prizes. Aeroplan miles expire if they do not have at least one qualifying activity - either earning, using or donating the miles - within a 12-month period.
Ironically, Air Canada actually created Aeroplan nearly 30 years ago, then decided to sell it to an independent company. Now, Air Canada plans to start a brand new loyalty program, using Aeroplan's existing model and customer base.
Aeroplan has about 5 million members, all of which will be absorbed by Air Canada's loyalty program if the deal is approved. As for your miles, Air Canada's CEO claims that they'll be protected during the transition.
"This transaction, if completed, should produce the best outcome for all stakeholders, including Aeroplan members, as it would allow for a smooth transition to Air Canada's new loyalty program launching in 2020, safeguarding their miles and providing convenience and value for millions of Canadians," the CEO told CBC.
The deal will reportedly be finalized quickly, by fall of this year.