Thoughts on the Aeroplan and Air Canada Breakup
As you probably already read all over the news that Air Canada does not currently intend to renew the Aeroplan partnership (owned by Aimia), which is expiring in June 2020. Apparently, Aimia is exploring post-2020 alternatives.
Based on the wording from an Aeroplan news release, it may seem like the door is left open for them to renew their contract. I mean, there is still 3 years to go before it expires. So for the time being, it is business as usual for Aeroplan members, as confirmed by the CEO of Aeroplan.
From Air Canada’s perspective, they seem more firm that their plan is to launch its own loyalty program.
Questions that come to mind
Right off the bat, a few burning questions came to mind:
- If this is 100% true, where does this leave Aeroplan?
- Is there a possibility for Aeroplan to team up with another airline?
- Will Aeroplan become the second coming of Air Miles? In other words, a complete third party loyalty program with various reward options, but not considered a frequent flyer program.
In the works for a while?
I have always had the fear that Aeroplan and Air Canada would discontinue its partnership, especially back when Air Canada decided to introduce its Altitude program. That was probably a trial period for Air Canada to see if they can stand on their own.
What will Air Canada do?
The reports say that Air Canada is planning on launching its own loyalty program. I just expect Air Canada to expand or revamp its Altitude program. So it is not like Air Canada is planning to start from scratch. They have a starting point to work with.
What I plan to do going forward
This means that I will be looking at another Star Alliance frequent flyer program. This will be a completely different analysis for every individual on determining which Star Alliance member to jump to.
Personally, my initial thought was to use United Airlines MileagePlus as my new primary Star Alliance program. Basically, every time I pay for a Star Alliance flight, I would back my miles to MileagePlus. I am hedging that United Airlines may potentially strengthen their ties with Canada. Furthermore, I have flown more United Airlines flight than any other airline in the past 10 years, mainly because when redeeming Aeroplan miles, I can save on fuel surcharges.
However, as nothing is ever set and stone, (which is why we always recommend to diversify your portfolio), so my plan main change over the next 3 years as Aeroplan gets phased out.
I think many people will panic and begin booking to use points.
Maybe this is part of the “master” plan(?)
Personally, much can happen in three years so I’ll let some time pass and see how things unfold.
There is still time for this to role out!
BA Avios might be an option. Transfer partner for AmEx and RBC BA visa, redem on likes of AA and JAL. Really sucky option from YOW, however, since AA only flies to Philly from YOW, but the moment you make it to a major US hub, SE Asia or to Europe, your options open up.
Yes, BA Avios is definitely an option, but it is not a Star Alliance member.
Personally, I always like to have one primary frequent flyer program per airline alliance to cover more bases.
Part of the reason I have stayed away from UA for status has been their high cost of rewards. 140K for business class to Europe just seems too high. Or 220K for First Class to Europe? Ouch. As a Canadian, there also isn’t many other ways to earn points – and that is important too.
I personally might think Avianca would be better then UA if you are going for status. As a Avianca star alliance gold member you would get lounge access all the time, even if you book a domestic US trip. As well, if you are short on points, you can often buy them in the 1.3-1.5 (about 2.1 CDN) per point during their sales. Avianca also now is starting to credit discount business class flights now too. So if you fly say 50K per year, as a Star Gold you could top that up with the point sales and be able to redeem for a business class trip to Europe say.
Yes, UA is not ideal, but a good alternative. Do what works best for you, so long as you have a way of accumulating miles.
Roll with AMEX and go from there. I love earn & burn. I grab as many points as I can and they get used. The only people worrying are those with 200 000 – 300 000 aeroplan points. So, keep getting aeroplan & travel. They are for fun, not banking. I can’t wait for AC to try and entice us with huge bonuses on credit cards affiliated with their new loyalty prog. I’ll be there to scoop them up.
Good advice, but miles are to use, not for banking!
What do you think about Turkish Airlines? Easy status match to Star Gold and easy to maintain(it lasts 2 years). That’s where I have been crediting my Star Alliance flights until I meet their re-qualification levels and then just topped up my Aeroplan. Now I will put them all into Turkish Airlines for paying flights and will try to zero my Aeroplan miles.
Definitely a good alternative to Aeroplan. Just make sure you have a way to keep your account active.