Air Canada said on Thursday it would launch its own loyalty program in 2020 and would not renew its contract with the Aeroplan operator, causing Aimia to plunge more than 50 percent.
The Montreal air carrier has indicated that its customers will be able to continue to raise Aeroplan points until June 2020. Subsequently, points earned from travel on Air Canada aircraft or its 26 partners in Star Alliance will be credited To a new program.
Travelers will be able to redeem these points for flights on Air Canada aircraft and Star Alliance carriers.
Air Canada intends to continue to allow Aeroplan members to redeem their points against seats on flights after June 2020. However, Aimia’s Chief Executive Officer indicated that this was not yet certain , Since several discussions will have to take place first.
The Aimia share was down $ 5.15 on Thursday afternoon, or 57.7%, to $ 3.77 on the Toronto Stock Exchange.
In an interview, the great boss of Aimia, David Johnston, said that his company expected this decision. Johnston was appointed CEO of Aimia on Wednesday, after serving the acting position for several months. Former CEO Rupert Duchesne, who was on medical leave, has now formally left his position.
According to Mr. Johnston, Aimia was preparing for this opportunity and was exploring various opportunities for her business after the contract with Air Canada ended. In particular, it could enter into agreements with other partners.
Mr. Johnston assured that the five million members of the Aeroplan program could expect a smooth transition.
“There is still three years left in the contract and during this period, business will proceed normally,” he said.
In a statement, Air Canada argued that the change in loyalty program would allow it to strengthen ties with its customers. The carrier did not wish to comment further on its decision. His action took Thursday afternoon at $ 1.45, or 9.7%, at $ 16.34.
Originally, Aeroplan was Air Canada’s in-house loyalty program. It was spun off as an independent company, which has since become Aimia. Its membership and services have grown in size over the years.