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Implications of AC selling Aeroplan?

Implications of AC selling Aeroplan?

Old Jan 17, 03, 8:46 am
  #1  
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Implications of AC selling Aeroplan?

If AC sells Aeroplan, any thoughts on what will happen to our FF miles? FF status?

http://www.nationalpost.com/financia...-4A96EECA5C7B}

Don't the rules of the Aeroplan program give the right to Aeroplan to changes the program at any time, in any way, etc?

Will we lose our miles? Could we use our miles for merchandise? Other thoughts?

[This message has been edited by Expatriate (edited 01-17-2003).]
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Old Jan 17, 03, 9:01 am
  #2  
msn
 
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No problem - CIBC or Lufthansa would both be buyers, but AC would have pressure unless it was CIBC.

Funny, calling it "non-core" and selling it when the core is the problem.
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Old Jan 17, 03, 9:03 am
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I think the key phrase is "Air Canada ... is said to be on the verge of a deal to sell part of its popular Aeroplan frequent-flyer program". I'd put "part" in bold if I'd ever taken the time to figure out how to do that!

As I've said many times, I think there is a real conflict between the frequent flyer and the frequent buyer parts of Aeroplan. I think it would help us if AC sold off the "buyer" part and concentrated on improving the "flyer" part - upgrades, lounges, instant KK, etc.

If AC didn't own AP, then that would also potentially open the door to rewards on non-*A airlines like WestJet and AA.

As long as I'm talking about instant KK: A simple idea would be to allow members to use status miles for "anytime" flights. Bonus/Aerogold/Future shop/etc miles would have the current rules. Too hard to implement?
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Old Jan 17, 03, 9:21 am
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This rumour has been floating around for very long...
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Old Jan 17, 03, 9:45 am
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I'm more interested in the implications of calling your frequent flyer program non-core. Seems to me you can't get much closer to the "core" than your most frequent flyers.

I'd also consider destina to be a liability as opposed to an asset.
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Old Jan 17, 03, 2:39 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Ken hAAmer:
I'm more interested in the implications of calling your frequent flyer program non-core. Seems to me you can't get much closer to the "core" than your most frequent flyers.

I'd also consider destina to be a liability as opposed to an asset.
</font>
Agree 100% with the above comments. I have suspected that customers in general are non-core to AC, especially the annoying ones like tier members.
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Old Jan 18, 03, 5:15 am
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What if someone with deep pockets purchased both Jazz and aeroplan? They could then build up Jazz to a proper national/international airline, cut ties with AC and have almost all of AC's former customer base. With very little debt. Onex perhaps?
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Old Jan 18, 03, 7:18 am
  #8  
msn
 
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You can just bet that Jazz would have so much debt tied to it that there is no way it could remain in the air.

Excepting the statement above, you already would have a national airline, albeit one that does not fly coast to coast non-stop.
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Old Jan 18, 03, 9:36 am
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Didn't AC try to sell Jazz a few years back and couldn't find any buyers? I can't believe based upon the current state of the airline industry that anyone, at least with deep pockets would step forward now.

AP is the a very valuable asset to CIBC. Didn't they sign a long term deal with AC back during the Onex takeover attempt to protect Aerogold/AP going to RBC?
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Old Jan 18, 03, 9:49 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B767:
Didn't AC try to sell Jazz a few years back and couldn't find any buyers? I can't believe based upon the current state of the airline industry that anyone, at least with deep pockets would step forward now.</font>
No, I think you're referring to the takeover where one of the conditions for AC to takeover CP was that they would have to put CP Regional up for sale for a determined amount of time.

[edited for grammar]

[This message has been edited by YOWkid (edited 01-18-2003).]
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Old Jan 18, 03, 9:54 am
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You are correct, they tried to sell CP Regional for 100+ million which would have been a good price considering they only paid approx 90 million for all of CP inlcuding the mainline and regional. I also thought that they had discussed/floated the idea of selling/spinning off Air Alliance, Air Nova, Air Ont and Air BC. Either way with Jazz 4th Q traffic down 30% I can't see anyone stepping up to the plate.

[This message has been edited by B767 (edited 01-18-2003).]
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Old Jan 18, 03, 12:04 pm
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If they were to sell aeroplan you can bet
there would be some very strict conditions
under which the new owner would have to
agree to. Not leaving Star, AC would be it's
main customer...etc.
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Old Jan 19, 03, 4:12 am
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Possibly, Ace, but for how long? When Pepsi spun off it's fast food restaurants (Pizza Hut, KFC, Taco Bell), AFAIK the only agreement was that Pepsi would remain the "prefered" beverage supplier for a renewable term. I think I read that the agreement's already been renewed, and the spinoff didn't happen that long ago. So the term must be short.

Say the aeroplan agreement states a period of ten years. That's plenty of time for Jazz to grow under the AC umbrella with the new revenue model and AC slowly dropping domestic routes. After ten years growth... pop... you buy or lease a couple extra aircraft, go transcon, maybe expand on the US routes, cut the codeshares with AC, keep all the aeroplan loyalty, join oneworld and BAM. No more AC. Hey, and if you managed to purchase the Canadian Regional name along with jazz, switch back to that but use really small type for "Regional". Long live the goose
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Old Jan 20, 03, 5:31 pm
  #14  
msn
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by B767:
Either way with Jazz 4th Q traffic down 30% I can't see anyone stepping up to the plate.</font>
I would LOVE to do just that - but I don't have the equity!
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Old Jan 27, 03, 12:24 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by cedric:
What if someone with deep pockets purchased both Jazz and aeroplan? They could then build up Jazz to a proper national/international airline, cut ties with AC and have almost all of AC's former customer base. With very little debt. Onex perhaps?</font>

Well, I got part of it right
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