Ontario man loses 370,000 Aeroplan miles saved for retirement
#16
Suspended
Join Date: Jun 2013
Location: Ontario, Canada
Programs: Aeroplan, IHG, Enterprise, Avios, Nexus
Posts: 8,355
AP really doesn't have a choice in the matter. They have to deny an exception otherwise every single person who has lost points in the past will be seeking the same consideration.
On a couple of occasions I've helped informed infrequent travelers of the rule and helped them keep their AP points. I suggest an AP credit card. It's not bad for a reward card and always ensures you keep your points providing you use it once a year.
On a couple of occasions I've helped informed infrequent travelers of the rule and helped them keep their AP points. I suggest an AP credit card. It's not bad for a reward card and always ensures you keep your points providing you use it once a year.
#18
Join Date: Sep 2010
Posts: 24
- the reward program closes accounts when a member is inactive (does not earn or redeem any points) for a long period of time and this is stated in the membership agreement.
#19
FlyerTalk Evangelist
Join Date: Nov 2007
Location: Denver • DEN-APA
Programs: AF Platinum, EK Gold, AA EXP, UA 1K, Hyatt Globalist
Posts: 21,603
#20
FlyerTalk Evangelist
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL
Posts: 23,314
All my Aeroplan miles expired at the end of February because of the upcoming devaluation, I only transfer AMEX for immediate redeeming.
All 20 of them. There were at least 4 warning emails from what I remember.
if this guy gets his miles back, I want my sizeable stash back too!
All 20 of them. There were at least 4 warning emails from what I remember.
if this guy gets his miles back, I want my sizeable stash back too!
#21
Join Date: Mar 2005
Programs: Air Canada Elite, Continental Gold, IC Royal Ambassador, SPG Gold
Posts: 705
I did this with United miles. I had been a CO platinum and then GS for many years, had 400k miles. Switched to AC/AE and then came back 14 months later to book a YYZ-EWR united flight with points and, poof, they were all gone.
That really really sucked. UA redemptions on short haul were easy and saver points made them super cheap back then.
That really really sucked. UA redemptions on short haul were easy and saver points made them super cheap back then.
#22
Join Date: Jun 2010
Location: YYG
Programs: airlines and hotels and rental cars - oh my!
Posts: 3,000
Outstanding miles represent an enormous cost to all loyalty programs. They're considered currency, so program operators are legally required to maintain sizable cash reserves against them. The more miles in circulation, the higher the reserve they need. In the case of Aeroplan, that's likely billions of dollars locked up in reserve funds.
No question Aeroplan is hoping to *poof* as many of these outstanding miles as possible to lower the reserve requirement, especially with AC's new FF program coming down the pipe. As the date draws near I almost wonder if they will begin offering incentives for people to redeem. Depending on their cash situation, it could be possible, I suppose. Had AC and the banks not bought Aeroplan, I think it would have been a virtual certainty.
No question Aeroplan is hoping to *poof* as many of these outstanding miles as possible to lower the reserve requirement, especially with AC's new FF program coming down the pipe. As the date draws near I almost wonder if they will begin offering incentives for people to redeem. Depending on their cash situation, it could be possible, I suppose. Had AC and the banks not bought Aeroplan, I think it would have been a virtual certainty.
#23
Join Date: Oct 2009
Location: YUL
Programs: AC SE (*A Gold), Bonvoy Platinum Elite, Hilton Gold, Amex Platinum / AP Reserve, NEXUS, Global Entry
Posts: 5,691
Hard-expiring the points after 1 year, especially large accounts, is illogical. AP got paid for the points, and they presumably got to invest the funds. A modest re-instatement fee, sure, charge $100, but to charge thousands of dollars to have an account reinstated is just abusive, IMHO. The amount of negative goodwill created by cancelling points just doesn't make cancelling points 'worth' it.
We're looking at this one instance of someone who lost 370,000. Meanwhile, how many millions of members does Aeroplan need to consider? If 370 other members had 1,000 miles each expire, that's the same value of "lost" miles as Mr. French... you can see how the size of the user base affects the financials which forces the introduction of these kinds of expiry clauses.
Outstanding miles represent an enormous cost to all loyalty programs. They're considered currency, so program operators are legally required to maintain sizable cash reserves against them. The more miles in circulation, the higher the reserve they need. In the case of Aeroplan, that's likely billions of dollars locked up in reserve funds.
No question Aeroplan is hoping to *poof* as many of these outstanding miles as possible to lower the reserve requirement, especially with AC's new FF program coming down the pipe. As the date draws near I almost wonder if they will begin offering incentives for people to redeem. Depending on their cash situation, it could be possible, I suppose. Had AC and the banks not bought Aeroplan, I think it would have been a virtual certainty.
No question Aeroplan is hoping to *poof* as many of these outstanding miles as possible to lower the reserve requirement, especially with AC's new FF program coming down the pipe. As the date draws near I almost wonder if they will begin offering incentives for people to redeem. Depending on their cash situation, it could be possible, I suppose. Had AC and the banks not bought Aeroplan, I think it would have been a virtual certainty.
#24
Suspended
Join Date: Jun 2013
Location: Ontario, Canada
Programs: Aeroplan, IHG, Enterprise, Avios, Nexus
Posts: 8,355
Although it probably doesn't apply to anyone here, should someone be looking for a free method to avoid AP point expiry you can earn them by participating in on-line polls from Leger Opinion. Sign up, specify AP points as your reward and make sure you redeem your points every few months. They don't offer that many points for survey participation but it is free and doesn't take much of your time.
https://www.legeropinion.com/en/
(Disclaimer: I am not associated with Leger in any fashion.)
https://www.legeropinion.com/en/
(Disclaimer: I am not associated with Leger in any fashion.)
#25
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
FFP's in general, do their pricing making assumptions about the miles/points left on the table. There is a cost to everything and thus, if one wants a longer redemption period, something else has to give.
#26
A FlyerTalk Posting Legend
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, BA Gold, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,354
I have no sympathy for him too but he may have some recourse. The story is from CTV Toronto so assuming he is in Ontario there are protections from expiring points. It would depend whether AC closed his account entirely or just wiped out the points.
https://www.ontario.ca/page/reward-points#section-2
https://www.ontario.ca/page/reward-points#section-2
#27
FlyerTalk Evangelist
Join Date: Feb 2004
Location: YVR
Programs: AC SE 2MM; UA MP Premier Silver; Marriott Bonvoy LT Titanium Elite; Radisson; Avis PC
Posts: 35,255
Well, the article only mentions that the person "likely" flew a million with AC... over decades of flying with them, this could mean being a 25K on average for all those years... so maybe he's still a FOTSG after all that.
#28
Join Date: Jan 2001
Location: YXU, ON Canada
Programs: AC LT E50K; AC*MM; SPG LT Gold
Posts: 4,665
EK has a 3 yr expiry limit which seems to be based on earn dates, and is independent of activity. Right now, I have over 100K with them and my profile shows that 86K will expire on a specific date, even though the additional miles were earned much more recently. But they're pretty good about sending reminders. I think I'd rather have the AC system where I can keep the miles as long as have some minimal activity.
#30
Join Date: Apr 2002
Location: YXE
Posts: 3,050
Outstanding miles represent an enormous cost to all loyalty programs. They're considered currency, so program operators are legally required to maintain sizable cash reserves against them. The more miles in circulation, the higher the reserve they need. In the case of Aeroplan, that's likely billions of dollars locked up in reserve funds.
These points have basically, to many Canadians, become currency, a savings plan. They no longer have much of any relationship with loyalty to a specific organization. And businesses have mostly cracked down on any ability for their staff to game the system, fares, etc., for such programs to even be effective in influencing travel decisions as a subtle form of (otherwise prohibited) bribery.
Last edited by tcook052; May 10, 2019 at 2:23 pm Reason: Off topic posting