Nice little synopsis about the real investment power of Aeroplan. I have this argument with Caffeine here about including Aeroplan redemptions in AC's stats, as if it's somehow padding the number, when in fact, it's a secure, growing revenue stream where AC the airline gets a guaranteed redemption stream and AP the investment makes money off the collection process.



Aeroplan will soar: analyst
BRENT JANG
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.Never mind Ben Bernanke and David Dodge. Investors should focus their attention on Aeroplan Income Fund, "a unique central bank."

That's the description of the income trust coined yesterday by Wui-Seng Kon, an analyst with Wellington West Capital Markets Inc. Why should Aeroplan be viewed as a central bank? "It is issuing a virtual currency called Aeroplan miles in exchange for the real currency of Canadian dollars," Mr. Kon wrote about the popular customer loyalty program majority owned by ACE Aviation Holdings Inc., parent of Air Canada.

The "beauty" of Aeroplan is that it "sets its own exchange rates" for earning miles and redeeming rewards, he said in a research report. Mr. Kon has a 12-month target price of $17 on Aeroplan. The trust's units rose 3 cents to $12.90 yesterday on the Toronto Stock Exchange.






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