Originally Posted by
Plumber
The issue is that there is x Billion points sitting out there waiting to be redeemed. Many, many people will now expedite those redemptions to get maximum value (ie before AP is forced into only a market -fare based redemption system. I believe it will now be more difficult to redeem over the next 3 years.
Agreed. We may see a 'run' on points, similar to the 'run' on the bank Home Capital Group experienced recently. If everyone rushes to redeem all their points Aimia goes bankrupt, the liabilities on their books far exceed their cash and cash equivalents. As of Q1 2017 they had 2.2 billion of future liabilities and only $230 million of Cash and equivalents...
Edited to add: Doesn't matter if it's flights or merchandise - they simply can't pay for it all...