Archive ACE agreement with Aeroplan PDF page 31-37
Link;https://www.aceaviation.com/en/investors/documents/2006_infoform.pdf Aeroplan page 31-37 PDF Copied and pasted from page 36 .I believe AC would want this portion amended. Aeroplan has entered into long-term agreements for the purchase of airline seat capacity with Air Canada and many of the other Star Alliance member airlines. Such agreements enable Aeroplan to offer its members access to an extensive and worldwide source of airline travel rewards. In 2005, approximately 90% of rewards claimed by Aeroplan members were air travel rewards. Prior to 2004, 10% of the seat capacity on AC Flights (as defined below) was allocated for Aeroplan rewards. Since April 2004, such allocation has been increased to a total of 15% of the capacity on flights operated by Air Canada and its affiliate, Jazz, and certain other air carriers under the "AC" code (collectively, the "AC Flights"), 8% of which is at a fixed low redemption cost and the balance of 7% is at a higher fixed redemption cost. The rates charged for such seat capacity are fixed through the end of 2007. Thereafter, any upwards or downwards adjustments to such rates must maintain aggregate discounts at least as favourable to Aeroplan as those set out in the current rates. The adjustments are also based on an identified set of parameters. Through recently completed arrangements with Air Canada to be implemented in 2006 or early 2007, Aeroplan will have access to unlimited seat capacity on AC Flights. Under the new arrangements, Aeroplan will continue to have access to 8% of the seat capacity at a fixed low redemption cost (subject to adjustments described above) and can purchase additional inventory based on published fares with a variable discount depending on the fare type. Any adjustments to this variable discount are based on an identified set of parameters. The CPSA (as defined below) also provides that Aeroplan will be charged the lowest fares charged to any other loyalty program and such fares will take into account Aeroplan's status as the largest consumer of Air Canada's seat inventory. These new arrangements will allow Aeroplan to provide its members with greater access to air travel rewards. To reflect the cost of the additional seats acquired, Aeroplan may adjust the number of Aeroplan Miles required to claim air travel rewards under the new arrangements.