RE:Some AC Loyalty plan timelineFor your convenience, below is the text from that slide presentation.
It seems that Air Canada is delusional if they think that they can "unlock" an NPV of $2.0 - $2.5 billion for an Air Canada loyalty program.
The global business world of loyalty programs is shifting towards coin offerings and cryptocurrencies.
Air Canada is an airline that waddles...and they have no expertise regarding a modern day version of a loyalty program.
Any loyalty program that Air Canada develops will likely be a flying dinosaur!
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"Launch of Own Loyalty Program
Expect to unlock significant value through the launch of loyalty program
– Net present value of $2.0 billion to $2.5 billion (on a pre-tax basis) over a 15-year period
– Initiating RFP for credit card partnership
* Assumes the current regulatory environment and a discount rate in line
with Air Canada’s WACC"
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Loonee wrote: I recall Westjet CEO said in recent interview that after 7 yrs their Loyalty program hasn't progressed well (or something similar). AC will be starting from scratch so to speak. Aeroplan has been around since the 90's with 5 million members and 150+ partners.
AC has a huge uphill battle where Westjet could benefit tremendously by partnering and offer their new lowcost line to Aeroplan members for domestic flights or something similar as a start. Westjet code shares with AeroMexico (Aimia owns 49% of Club Premier).
Nov 30th CS presentation