AEROPLANE

Aeroplan is a Montreal, Quebec based loyalty marketing program operated by Groupe Aeroplan Inc (TSX: AER). The Aeroplan Program was created in July 1984 by Air Canada as an incentive program for its frequent flyer customers. There are approximately 5 million active members in the program. [1]

In recent years, Aeroplan has evolved into a loyalty marketing company that serves Esso, Home Hardware, Sobeys, and others. Aeroplan is also used by Air Creebec, Canadian North, Calm Air, and First Air[2].

Many Aeroplan clients collect points via credit cards. Credit cards were originally allocated to CIBC and Diners Club/enRoute, but it was later offered to AMEX Bank of Canada, while Diners Club withdrew from the program. [3]
Corporate History

From the Aeroplan program creation in 1984 its operations were fully integrated with those of Air Canada. On January 1, 2002 it was restructured as a limited liability partnership, fully owned by Air Canada.

In June 2005, Air Canada's parent company ACE Aviation Holdings sold 12.5% of Aeroplan for $250 million through an initial public offering creating Aeroplan Income Fund.

On December 20, 2007 Aeroplan Income Fund acquired Loyalty Management Group. Loyalty Management Group are responsible for the Nectar loyalty card in the UK.

On May 28, 2008, ACE Aviation Holdings disposed of its remaining holdings in the fund. As such the Aeroplan program is no longer under direct control of Air Canada.

Initially created as an income trust, Aeroplan Income Fund converted to a public corporation on June 25, 2008 and subsequently changed its name to Groupe Aeroplan Inc.[4]

[edit] Competition

Air Miles is Aeroplan's main competitor as a Canadian-based travel rewards loyalty program, however it is not an airline frequent flyer program per se. HBC Rewards is also a competing non-airline rewards loyalty program.

[edit] Criticism

As of January 1, 2007, miles will expire seven years after they are earned. Also, in order to keep miles from expiring activity on an Aeroplan account is required at least once a year[5].

[edit] Member Numbers

There are 4 levels of membership in Aeroplan: Basic, Prestige, Elite, and Super Elite. The Prestige, Elite, and Super Elite levels provide travel benefits such as upgrades and lounge access to customers, but require customers to fly a certain number of miles per year. Prestige members have Star Alliance Silver status while Elite and Super Elite members have Star Alliance Gold status with other Star Alliance Airlines. As of January 16, 2006, there were approximately 4.9 million Basic members, 57000 Prestige members, 68000 Elite members, and 9000 Super Elite members[citation needed].