gsfromc

Just off the wires...

Aeroplan to branch out and rebrand

Air Canada likely to broaden ways to accumulate miles

By JOHN PARTRIDGE, GLobe & Mail (B3)

Aeroplan, Air Canada's frequent-flier points program, is to unveil a new corporate identity and rebranding program today, and is also expected to announce plans to broaden the number of ways cardholders can accumulate miles.

Aeroplan said yesterday that its president, Rupert Duchesne, will introduce the new identity at a news conference in Toronto, where he also will outline "future plans."

People familiar with these plans indicated they will involve a big push into what is being described by Aeroplan as "retail mileage accumulation," along with a new card that has been redesigned not just graphically to reflect the new identity, but also technologically.

Aeroplan has made a number of changes in the past few months that are designed to help transform it from being strictly a frequent-flier points program to a much broader loyalty program with partners other than Air Canada.

Mr. Duchesne said in April that he was negotiating deals that would enable members to earn and redeem points with about five large Canadian retailers, adding that the list could include national drugstore, gas and grocery chains, as well as telecom companies and department stores.

parnel

We have another thread already started.

http://www.flyertalk.com/forum/showthread.php?t=324978

Altaflyer

Very bad for people who actually fly

Ken hAAmer

I dunno, perhaps it's just another way for AC to convert itself into a real LLC by doing away with it's frequent flyer "loyalty" program.

jakpot

.....while funding the switching cost with the booking fees collected from loyal members. The booking fees were collected in good faith on the understanding it somehow benefit the program. Instead, the capital is squandered on logos, news releases and management consultants.


1D

mballb

Seems like the actual flyer is not longer the primary target market for Aeroplan...

Only about one million Aeroplan members are frequent fliers, and the expanded program is designed to appeal to the others. “We frankly, over the years, have not put adequate focus on the members who don't fly, and this is redressing the balance,” he (Duchane) said.

Simon

Um, shouldn't that mean that the people who don't fly have their benefits under the plan cut, not increased??

yyznomad

<rant>Is it not possible that although AP is expanding their customer base to non-FF's that they could also keep the current FF program as it is and not eventually phase it out? Is it not possible that the P's/E's/SE's/*G's are actually important to the survival of AC? If they are to phase out FF benefits and turn it into a pure points program, then why would anyone care to have a FF base currently anyway? I highly doubt that the AP FF program will go away or shrink... FF loyalty is always important to an airline, IMHO. Who else spends tens of thousands of dollars a year to stick to a carrier? Do you mean to tell me that an airline can survive by having thousands of random average joes taking one or two flights a year to visit grandma?</rant>

Youponder

No, it should mean that those who have the points should be allowed to fly by increasing availability. That's why we're AP members in the first place, duh!

exAC

Don't forget to seperate AC and AE.

AC is the airline and are the ones to address you as a Frequent Flyer. Lounges, Upgrades, Concierge, Points accumulation are their concerns.

AE is the Frequent Buyer and giver of redemptions. Talk to them about award levels, star alliance award charts, partner programs.

yyznomad

Yeah... I know... but in a way, what I meant is that their relationship is somewhat symbiotic. Are you saying that there would still be a Frequent Flyer recognition program run by AC that would include lounge access, concierge, upgrades etc.?

parnel

I think AC will allow the pure FF awards for air travel to move away from aeroplan as it becomes a non airline awards program. Flts will still be part f the AE prgram but he FFer's will get their status awards in the future direct from AC and not AE. AC has a history of selling off profitable business units in the past to reinforce the airlines balance sheet and new investors will see pure profits from selling AE or taking it public. It will be an evolution of sorts but I do believe it will eventually happen this way.

exAC

er, yah, somewhat????

It is hard to keep straight in our minds, but Aeroplan will only do what the Airline asks them to do in terms of tier status, upgrades, and things that the airline pays for or is affected by. Aeroplan will gladly give out unlimited upgrades if the airline wants them to. They will set Elite status at 10,000 points if the airline wants them to. But, in these areas aeroplan cannot do it on their own.

If Aeroplan wants to give upgrades to it's 'non-flying best customers', then they will have to find some way to 'buy' this from the airline. Likely the currency will be aeroplan points (can points denominated upgrades be far away for status members?). If aeroplan wants to grant lounge access to high spending non-flyers, then they will need to 'buy' this from the airline.

When in doubt think of the relationship between Airmiles and Westjet.

senor_jefe

Here's a crazy idea. Along with the introduction of all these new ways to earn and redeem AE miles, why not make their value less than that of miles earned by actual butt in seat flying? Let's say you only get .5 Aeropesos per dollar spent. I'd also like to see the FF benefits received from getting the right credit card eliminated. From a purely selfish view as 1 of the 1 million FF's in Aeroplan (and 1 of 5000 or so SE's), I can see a couple benefits of this:

1. Making it harder for the 5 million other people collecting miles to redeem them for free flights. The whole idea of a FF plan is to create loyalty to an airline. The only loyalty the 5 million frequent shoppers show is to the free flights AC will give them. This would free up some availability for awards.

2. Less crowded MLL's and shorter lines at the premium check in counters. These are a couple of the little things that make the lives of frequent fliers easier, and engender loyalty to an airline.

I guess my point is that I think Aeroplan needs to decide whether it is a frequent flier program or a frequent shopper program. With a few tweaks, I think it can do an effective job of both.

Altaflyer

I think this ship has sailed into shopper land a while ago! I would redeem away as it isn't going to get any better folks.