Aeroplan is at the moment, uniquely positioned to remain a mid/top tier elite-friendly FFP that can withstand the onslaught of people with huge mileage balances from non-flying earning.

1. Competition for upgrades are limited in four important ways:

* no mileage redemption for upgrades
* upgrade certs only distributed to E and SE members
* upgrade certs can only be transfered to other members with same status
* only one non-status companion can use an upgrade with a status member

Effectively, a mileage accumulator that does not have mid/top tier status nor any E/SE contacts with upgrade certs, will NEVER upgrade in the Aeroplan program.

Whereas, most US programs let ANYONE with enough mileage to be eligible for an upgrade. Further, UA and AA upgrade certs are fully transferable to ANYONE. Sure, these programs can be perceived as more 'flexible' or 'generous' than AP, but from a CERTAINTY OF DELIVERABILITY standpoint, AP is servicing a far more manageable demand pool than UA or AA.

By restricting upgrades to mid/top tiers, AP is incentivizing customers to strive for elite status whereas UA and AA reward members for merely signing up for their programs, since upgrade potential exists from the moment they open their account NOT the moment they earn status.

2. Instant KK Benefit Rewards SEs and Limits Award Redemption Competition

Once again, AP treats its SEs with exclusive benefits. Not only can SEs access AC metal award inventory without capacity controls (FFP industry leading edge precedent), but they also offer instant KK at NO redemption premium. So, essentially award tickets ON DEMAND for CHEAP redemption level! Compelling reason to strive for SE status.

Contrast that to UA and AA, who again, make very little distinction between their top-tier members and anyone who happens to have a large mileage balance. UA top-tiers have to pony up the SAME DOUBLE miles as a non-status member with lots of miles to get a no capacity controlled seat. As a result, on heavily booked routes, even a UA top-tier can be denied a double mile award seats!

So, AP segregates its award inventory based on elite status and UA essentially lets anyone with an MP number grab at its inventory. Again, UA's program looks to be more 'flexible' and generous', but ask any SE what their award redemption success ratio is with AP vs. a 1K success ratio with UA-MP.

Because AP limits its preferred award avails to its top tier members, it can reliably DELIVER on its instant KK benefit, whereas UA has set itself to service everybody, in effect, servicing nobody particularly well or consistently.


I think AP has achieved the elusive FFP industrywide goal of structuring a sustainable business model that rewards its best customers.