I think the press release is saying that in the initial stages of the merger, AC/CP is going to have an alliance similar to the CO/NW agreement. That is, major codesharing, and the ability to earn and redeem miles on either carrier through both Candaian Plus and Aeroplan. Like the CO/NW agreement, CP and AC will still maintain separate brand images and pricing controls.

I doubt that the two freqent-flier programs will be merged as long as CP still retains agreements with AA. I highly suspect that UA would be furious if Aeroplan members could earn and redeem points on their sworn arch-competitor. I don't have a clue as to what, if any, role CP's forced "agreement" with DL will have on this...