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June 28, 2004
Air Canada Tussles with Air Miles
Canadian shopping loyalty program Air Miles faces a newly intensified challenge from Air Canada as its Aeroplan program branches out into more partnerships in retail.
This is hardly new for a frequent flyer program, many of its US and Asian counterparts have already recognized that their currencies are powerful incentives beyond distinguishing commdity airline seats, and the partnerships are profitable as airlines sell their points to retailers for a higher price than the cost of airline seat redemptions.
As Air Canada reaches more consumers through non-aviation earning opportunities, look for them to offer more non-aviation redemption opportunities as well -- just as Air Miles offers low point redemption for movie tickets, many US carriers offer miles for magazines, and United now partners with Sony to offer music downloads.
Posted by gleff at June 28, 2004 3:30 AM
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