Friday, July 25, 2008
Aeroplane History
Aeroplan is a Montreal, Quebec based loyalty marketing program operated by Groupe Aeroplan Inc (TSX: AER). The Aeroplan Program was created in July 1984 by Air Canada as an incentive program for its frequent flyer customers.
In recent years, Aeroplan has evolved into a loyalty marketing company that serves Costco, Esso, and others. Aeroplan is also used by Air Creebec, Canadian North, Calm Air, and First Air[1].
Aeroplan 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.
Contents
1 Corporate History
2 Competition
3 Criticism
4 Member Numbers
5 Airline Partners
5.1 Fully Integrated Airline Partners
5.2 Star Alliance Partner Airlines
5.3 Star Alliance Regional Partners
5.4 Other Partners
6 References
7 External links
//
Corporate History
From the Aeroplan program creation in 1984 its operations were fully integrated with those of Air Canada. On January 1, 2002 it was restructured as a limited limited partnership, fully owned by 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 Aeroplan Income Fund.
On December 20, 2007 Aeroplan Income Fund acquired Loyalty Management Group. Loyalty Management Group are responsible for the Nectar loyalty card in the UK.
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.
The Aeroplan Program was created in July 1984 by Air Canada as an incentive program for its frequent flyer customers. Aeroplan's operations were integrated with those of Air Canada until the end of 2001. On January 1, 2002, Aeroplan was established as a wholly-owned limited partnership of Air Canada, with a dedicated management team focused on the development of the Aeroplan Program.
Between 1984 and 1990, membership in the Aeroplan Program grew by approximately 100,000 new members per year. During this period, Aeroplan also added several travel-related partners to the Aeroplan Program. By 1990, the Aeroplan Program had grown to over 700,000 members. In 1990, Aeroplan implemented the Elite? and Prestige? classifications designed to recognize and reward its more frequent travelers and to provide them additional benefits. Given the popularity of the tier status element of the Aeroplan Program, Aeroplan introduced in 1999 a third classification, Super Elite?, to reward and recognize those members who accumulated more than 100,000 Aeroplan Miles per year from frequent flyer travel.
In 1989, the EnRoute credit card, owned at the time by Air Canada, was introduced. The card was the first credit card allowing its users to accumulate Aeroplan Miles based on their billings to the card. This relationship demonstrated the appeal of new and alternative accumulation methods for Aeroplan members beyond pure travel.
In 1991, with the successful launch of the CIBC Aerogold Visa card, the first non-travel related partner, Aeroplan's growth began to accelerate. Between 1991 and 2000, the Aeroplan Program grew at an average of 450,000 new members per year. In 2001, as a result of the integration of Canadian Airlines' frequent flyer program, Canadian Plus, Aeroplan added approximately 845,000 new members to the Aeroplan Program.
Beginning in 2003, Aeroplan made a strategic shift to expand the reward portfolio beyond airline seats. Today, in addition to airline seats, members can redeem their Aeroplan Miles for other travel rewards such as hotel rooms and car rentals, selected Future Shop merchandise and a diversified selection of experiential and specialty rewards.
In April 2003, Air Canada, then Aeroplan's parent company, and certain of its subsidiaries, filed for creditor protection under the CCAA. Aeroplan was not a party to the CCAA proceedings. During Air Canada's restructuring process, Aeroplan's growth with existing partners was limited and program launches with new commercial partners were delayed. On September 30, 2004, ACE's predecessor corporation and now its wholly-owned subsidiary, Air Canada, and certain of its subsidiaries, emerged from creditor protection under the CCAA.
As part of its restructuring, in April 2003 Air Canada renegotiated its long-term agreement with CIBC. This renegotiation resulted in an increase in revenue per Aeroplan Mile sold and also allowed for the relaxation of certain exclusivity provisions. The agreement was assigned by Air Canada to Aeroplan in July 2004. Aeroplan and Air Canada also entered into a long-term agreement with AMEX in January 2004 in respect of the creation of the AeroplanPlus card products and inclusion of Aeroplan in AMEX's Membership Rewards® program.
In June 2005, Aeroplan completed its initial public offering. The transaction raised $287.5 million at a 7% yield and earned Aeroplan an initial valuation of $2.0 billion, making it one of the largest business income trusts in Canada.
In December 2007, Aeroplan Income Fund acquired Loyalty Management Group (LMG), the leading loyalty marketing and customer-driven insight and analysis company that owns and operates Nectar, the United Kingdom's leading coalition loyalty program.
Today, Aeroplan's millions of members earn Aeroplan Miles with its growing network of over 70 world-class partners, representing more than 150 brands in the financial, retail, and travel sectors.
In June 2008, Aeroplan Income Fund converted into a growth-oriented, dividend-paying global loyalty management public corporation named "Groupe Aeroplan Inc".
Competition
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.
Criticism
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[2].
Member Numbers
There are 4 levels of membership in Aeroplan: Basic, Prestige, Elite, and Super Elite. The Prestige, Elite, and Super Elite levels provide travel benefits such as upgrades and lounge access to customers, but require customers to fly a certain number of miles per year. Prestige members have Star Alliance Silver status while Elite and Super Elite members have Star Alliance Gold status with other Star Alliance Airlines. As of January 16, 2006, there were approximately 4.9 million Basic members, 57000 Prestige members, 68000 Elite members, and 9000 Super Elite members.
In recent years, Aeroplan has evolved into a loyalty marketing company that serves Costco, Esso, and others. Aeroplan is also used by Air Creebec, Canadian North, Calm Air, and First Air[1].
Aeroplan 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.
Contents
1 Corporate History
2 Competition
3 Criticism
4 Member Numbers
5 Airline Partners
5.1 Fully Integrated Airline Partners
5.2 Star Alliance Partner Airlines
5.3 Star Alliance Regional Partners
5.4 Other Partners
6 References
7 External links
//
Corporate History
From the Aeroplan program creation in 1984 its operations were fully integrated with those of Air Canada. On January 1, 2002 it was restructured as a limited limited partnership, fully owned by 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 Aeroplan Income Fund.
On December 20, 2007 Aeroplan Income Fund acquired Loyalty Management Group. Loyalty Management Group are responsible for the Nectar loyalty card in the UK.
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.
The Aeroplan Program was created in July 1984 by Air Canada as an incentive program for its frequent flyer customers. Aeroplan's operations were integrated with those of Air Canada until the end of 2001. On January 1, 2002, Aeroplan was established as a wholly-owned limited partnership of Air Canada, with a dedicated management team focused on the development of the Aeroplan Program.
Between 1984 and 1990, membership in the Aeroplan Program grew by approximately 100,000 new members per year. During this period, Aeroplan also added several travel-related partners to the Aeroplan Program. By 1990, the Aeroplan Program had grown to over 700,000 members. In 1990, Aeroplan implemented the Elite? and Prestige? classifications designed to recognize and reward its more frequent travelers and to provide them additional benefits. Given the popularity of the tier status element of the Aeroplan Program, Aeroplan introduced in 1999 a third classification, Super Elite?, to reward and recognize those members who accumulated more than 100,000 Aeroplan Miles per year from frequent flyer travel.
In 1989, the EnRoute credit card, owned at the time by Air Canada, was introduced. The card was the first credit card allowing its users to accumulate Aeroplan Miles based on their billings to the card. This relationship demonstrated the appeal of new and alternative accumulation methods for Aeroplan members beyond pure travel.
In 1991, with the successful launch of the CIBC Aerogold Visa card, the first non-travel related partner, Aeroplan's growth began to accelerate. Between 1991 and 2000, the Aeroplan Program grew at an average of 450,000 new members per year. In 2001, as a result of the integration of Canadian Airlines' frequent flyer program, Canadian Plus, Aeroplan added approximately 845,000 new members to the Aeroplan Program.
Beginning in 2003, Aeroplan made a strategic shift to expand the reward portfolio beyond airline seats. Today, in addition to airline seats, members can redeem their Aeroplan Miles for other travel rewards such as hotel rooms and car rentals, selected Future Shop merchandise and a diversified selection of experiential and specialty rewards.
In April 2003, Air Canada, then Aeroplan's parent company, and certain of its subsidiaries, filed for creditor protection under the CCAA. Aeroplan was not a party to the CCAA proceedings. During Air Canada's restructuring process, Aeroplan's growth with existing partners was limited and program launches with new commercial partners were delayed. On September 30, 2004, ACE's predecessor corporation and now its wholly-owned subsidiary, Air Canada, and certain of its subsidiaries, emerged from creditor protection under the CCAA.
As part of its restructuring, in April 2003 Air Canada renegotiated its long-term agreement with CIBC. This renegotiation resulted in an increase in revenue per Aeroplan Mile sold and also allowed for the relaxation of certain exclusivity provisions. The agreement was assigned by Air Canada to Aeroplan in July 2004. Aeroplan and Air Canada also entered into a long-term agreement with AMEX in January 2004 in respect of the creation of the AeroplanPlus card products and inclusion of Aeroplan in AMEX's Membership Rewards® program.
In June 2005, Aeroplan completed its initial public offering. The transaction raised $287.5 million at a 7% yield and earned Aeroplan an initial valuation of $2.0 billion, making it one of the largest business income trusts in Canada.
In December 2007, Aeroplan Income Fund acquired Loyalty Management Group (LMG), the leading loyalty marketing and customer-driven insight and analysis company that owns and operates Nectar, the United Kingdom's leading coalition loyalty program.
Today, Aeroplan's millions of members earn Aeroplan Miles with its growing network of over 70 world-class partners, representing more than 150 brands in the financial, retail, and travel sectors.
In June 2008, Aeroplan Income Fund converted into a growth-oriented, dividend-paying global loyalty management public corporation named "Groupe Aeroplan Inc".
Competition
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.
Criticism
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[2].
Member Numbers
There are 4 levels of membership in Aeroplan: Basic, Prestige, Elite, and Super Elite. The Prestige, Elite, and Super Elite levels provide travel benefits such as upgrades and lounge access to customers, but require customers to fly a certain number of miles per year. Prestige members have Star Alliance Silver status while Elite and Super Elite members have Star Alliance Gold status with other Star Alliance Airlines. As of January 16, 2006, there were approximately 4.9 million Basic members, 57000 Prestige members, 68000 Elite members, and 9000 Super Elite members.
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