Close X
Saturday, November 23, 2024
ADVT 
National

Air Canada Seeking Bank Credit Card Partner For New Loyalty Program

The Canadian Press, 19 Sep, 2017 12:31 PM
    MONTREAL — Air Canada says it is launching a search for a co-branded credit card partner for its new loyalty program.
     
    The Montreal-based airline says it will be inviting key financial institutions to participate in a request for proposals to join the launch of the program on July 1, 2020.
     
    Air Canada (TSX:AC) served notice in May that it does not plan to renew its 30-plus year partnership with Aeroplan parent Aimia (TSX:AIM) when the current contract ends. However, it will continue to make Air Canada flights available for Aeroplan redemptions, as it does for other rewards programs.
     
    Operating its own loyalty program is expected to deliver a pre-tax net present value of $2 billion to $2.5 billion over 15 years.
     
    The move was announced Tuesday ahead of the company's annual investor day.
     
    Air Canada CEO Calin Rovinescu told analysts that the move is in line with other airlines that operate their own loyalty program.
     
    Aeroplan used to be a division of Air Canada before it was spun off during an IPO in 2008.
     
    Rovinescu said the move will generate financial returns and improve the value proposition for credit card users and partners.
     
     
    With international travel the most important reward, Air Canada said it can deliver what loyalty card members want through its extensive global network.
     
    "This makes us a highly desirable partner," Rovinescu said.
     
    Air Canada also introduced new, financial targets between 2018 and 2020, including $2 billion to $3 billion in cumulative free cash flow.
     
    "With several years of record results and profitability...we're confident in saying that we are on the right trajectory towards a sustainably profitable and investable company with an improved cost structure, improved debt rating, strong free cash flow and great prospects for the future," Rovinescu said.
     
    He also pointed to the 3,000 per cent increase in Air Canada's share price since early 2009.
     
    Doug Taylor of Canaccord Genuity says the loyalty card returns imply another $7 to $9 per share.
     
    "Air Canada remains our favoured way to play the Canadian airlines as we believe the company’s free cash flow ramp and its focus on deleveraging and margin expansion over the coming years will lead to multiple expansion and attract new investors," he wrote in a report.
     
     
    Air Canada is also providing travel updates for customers who may be impacted by hurricane Maria, which is on track to hit many of the same areas of the Caribbean that were devastated by hurricane Irma. Updates can be found on AirCanada.com.

    MORE National ARTICLES

    Commercial Truck Blitz Underway In Vancouver As More Than Half Fail Safety Check

    Commercial Truck Blitz Underway In Vancouver As More Than Half Fail Safety Check
    Vancouver Police say more than half of the commercial vehicles checked during a recent road-safety blitz were so badly maintained they were immediately ordered off the road.

    Commercial Truck Blitz Underway In Vancouver As More Than Half Fail Safety Check

    Man Dies Following Assault In Nanaimo, B.C.

    Man Dies Following Assault In Nanaimo, B.C.
    RCMP Cpl. Jon Stuart says a man was found injured in an apartment building on Monday night.

    Man Dies Following Assault In Nanaimo, B.C.

    Car Crashes Into Hydro Pole In Surrey, Knocking Out Power To Homes

    Car Crashes Into Hydro Pole In Surrey, Knocking Out Power To Homes
    On September 11th, 2017 at approximately 2:00am, Surrey RCMP received several calls reporting a single vehicle collision into a hydro pole near the intersection of 64th Avenue and 184th Street. 

    Car Crashes Into Hydro Pole In Surrey, Knocking Out Power To Homes

    Vancouver Police Cracks Down On Unsafe Commercial Vehicles

    Vancouver Police Cracks Down On Unsafe Commercial Vehicles
    These collaborative inspections are part of an ongoing campaign focused on improving road safety by identifying unsafe commercial vehicles.

    Vancouver Police Cracks Down On Unsafe Commercial Vehicles

    Vancouver Park Board To Mull Motion Seeking Ban On Use Or Display Of Balloons

    Vancouver Park Board To Mull Motion Seeking Ban On Use Or Display Of Balloons
    VANCOUVER — The Vancouver Park Board is being asked to consider sticking a pin in the presence of latex and plastic balloons in city parks.

    Vancouver Park Board To Mull Motion Seeking Ban On Use Or Display Of Balloons

    Crown Says Montreal Couple Was Intent On Waging Jihad In The Middle East

    Crown Says Montreal Couple Was Intent On Waging Jihad In The Middle East
    MONTREAL — The Crown says a young Montreal couple was intent on answering the call from Islamic State to wage jihad in the Middle East and had amassed bomb-making materials at their home.

    Crown Says Montreal Couple Was Intent On Waging Jihad In The Middle East