YYZ

http://home3.americanexpress.com/can...d/CAIL_Q&A.htm


Customer Concerns Over Canadian Airlines' Termination of MRP Participation

American Express is very aware of the mounting customer concern over the difficulties caused by Canadian Airlines' cancellation of
their participation in the Membership Rewards program and their decision not to honour their companion ticket certificates issued to
Platinum Cardmembers.

We want our Cardmembers to be fully aware of developments that may impact them and we will continue to provide updates.
Cardmembers should be aware that:

We are actively pursuing a number of potential solutions to provide alternative rewards / benefits to maintain the quality of the
program.
Class action suits have been commenced against Amex on behalf of all Platinum Cardmembers with respect to the loss of the
Companion Ticket benefit.
Amex will defend the suits on several grounds but particularly on the basis that any loss is solely due to Canadian Airlines'
refusal to honour the Companion Ticket certificates.
Amex has requested the Alberta Court's consent to have Canadian Airlines added as a party to the suits.
Cardmembers should be aware that if Canadian Airlines is found liable, they would be 100% liable for any judgment against
them. Any such judgment would not be affected by Canadian Airlines' current legal status.
We are aware that Canadian Airlines continues to use its web-site to deliver inaccurate, incomplete and misleading statements
concerning its position and its alleged "offer" to continue to convert MRP points until December 31, 2000 under existing
terms. The truth is that the terms of their "offer" were completely unworkable; for example, Canadian Airlines has given no
assurance that they will not cancel the agreement again, or that if they did, there could be any recourse against them.
There is a provision in the existing contract which allowed for an orderly winding-down of the program over a two year period.
Canadian Airlines refused to take that option choosing instead instant and unilateral cancellation.
Recently, Canadian Airlines has begun publishing on their web-site an incomplete and selective collection of settlement
correspondence between the parties. Amex has concluded that Canadian Airlines' publications on this issue are highly
defamatory and misleading and we will be asking the Court in Alberta to permit Amex to proceed with a defamation action
against Canadian Airlines so that the full story will be presented in a court of law.

Ken hAAmer

Interesting that they are not persuing the loss of discounted awards and points transfers. But downright bizarre that CP is suing Amex, given the letter that CP sent cancelling the agreement, now published on the Amex web page. What were they thinking?


[This message has been edited by Ken hAAmer (edited 06-13-2000).]

YYZ

Hi Ken,

I don't think it is CP that is suing AMEX. It is a class of Platinum cardholders that is suing AMEX because of the wording in the companion ticket (argument being that there is a contract between platinum cardholders and AMEX, not the cardholders and CP)

Ken hAAmer

Whoops.

Shareholder

Anything related to the Cdn+ program as KH states in his posts is likely "subject to change" without notice and thus might not stand up to scrutiny in a court of law. But the certificate between Amex Plats and Amex has no such restrictive language on it, and so is an implied contract between the parties and part of the membership package. I don't find any language in the boilerplate of my Amex Plat guide and contract saying this, so I guess those launching the suit also saw this as their best course of action.

And while Amex can argue Cdn should be a co- defendent, a court/judge may find that while Cdn is an indirect party, the current wording of the certificate does not say "Amex and Cdn offer you...", it just says Amex offers this second ticket provided the member books on CP metal.

As a Platinum cardholder, I have not signed on to the suit, but am watching developments. I am also waiting for Amex to up the ante before I make my renewal decision in December. Will likely transfer/park my remaining 10K (I have just over 11K points) to my old or a new Delta account this week to save the "admin fee".

Wonder if Amex will become the official card of RootsAir, and offer a range of perks -- i.e. elite from day one -- on that carrier when it starts up this winter? If I were both of them, it would be the natural thing to do, or else they won't have the key advantage (elite perks) for regular travellers to encourage us to switch from AC/CP.

AC*SE

I think you are spot on SH.

Not just Amex, either. I think RBC/Royal Trust will be in there, because they will be left rudderless once CP is absorbed into AC.

And I think the boffins at OW have to be looking at this with interest. The RootsAir proposal is the first to hit the table with a real two class, 1st rank service concept which fits in with the international alliance carriers.

YYZ

SH

Article in Globe yesterday says that a second class action has been initiated against AMEX over companion ticket issue. Looks like you go the choice of classes http://www.flyertalk.com/forum/smile.gif (I used my ticket already and wouldn't qualify)

B1

I have an AMEX Corporate card that I upgraded to member rewards, intending to use Canadian Plus. I tried to convert the points when it was still possible and was discouraged from doing so by the AMEX person on the phone - I was told to wait until the end of April - then I couldn't. Great advice. AMEX then told me I could use Delta or Continental instead. That doesn't work. Has anyone checked that option? I did. They have no short haul allowance (as in 15,000 miles at CP or AC), only 25,000 for anywhere in NA. So I have enough for a CP trip to New York, which was what I want but not enough for the same on Delta or CO (and CO goes to EWR not LGA). The offer for $100 for 10,000 points is 1% in cash according to my calculations. You can get cards for no fee that give 2% rewards. The least AMEX could do is give fair value. It looks like they'll be spending it on lawyers instead. Has anyone tried Diner's Club Enroute - they are owned by AC so they points there should be safe - if anyone takes their card (it costs $65 per year). I haven't used my AMEX card since the CP debacle - but unless I keep it I lose even the points I have.

muskoka

Anyone know of a website or contact to find
out how to join one of these class actions?
Us Platinum holders who got left holding
these worthless certificates need to do something-- my letter to Mr. Stark at AMEX
was answered by one of his PR flunkies and
extolled the virtues of their " new & improved" Membership Rewards program, which
isn't worth diddly to me--when would I ever
fly on Northwest?

Shareholder

B1: Diners|enRoute is actually owned by CitiBank (who also have their own Visa card and have just bought Canada Trust's Mastercard business). AC sold enRoute to them a few years ago, but kept the cobranded Maple Leaf Club "elite" card -- gives you MLL access and other perks similar to Elite Aeroplan benefits, but is no longer being issued -- and the two regular varieties: one is like the Amex which requires full payment upon billing, the other is a rotating card on which balances can build. There are usually offers mailed to Aeroplan members which give 5K bonus Aeroplan miles upon first use. If you call Diners, make sure to ask them about such promos before you sign on.

To get miles, you'll need an Aeroplan account if you don't have one already, and at some point in the coming months when Cdn+ is folded into Aeroplan, both sets of points/miles will be merged into a single Aeroplan account. But until then, you won't be able to use that card to build up points in your Cdn+ account.

[This message has been edited by Shareholder (edited 06-19-2000).]