RE:Club Premier Aero Mexicomurrarms wrote: Maybe Club Premier /Aero Mexico could be where Aero plan will integrate 2020. Aero Mexico alliance is with Sky Team which includes Delta Airlines and numerous other airlines. I believe over 60% of ACs Domestic passengers are USA travellers .Aimia owns 49% of Club Premier.
They have said this mutiple times... they will not try to partner with only 1 airline. They are transitioning to a travel agency based program. Think of a Expedia style program where members will be able to pay a mix of Cash and points to redeem on any flight. They could even bring another revenue stream by letting non members just outright buy flights/pacakages.
This has alot of potential for upsale and cash flow. Imagine a member having enough points to purchase a flight to Paris... Aeroplan could try to upsale the hotel/car rental by being competitive but also giving points on cash purchases. double dip if you have the aeroplan points card even.
The question is wether they are able to compete in this market. Are they able to compete agaisnt the Kayaks, Expedias, and other online travel agencies ? I think the points are a competitive differenctiator, the volumes they are buying will enable them to negociate great bulk prices. And as long as the dont get too greedy the potential of this is huge... but there will be more up and down along the way. Accumulation partners might not see the potential and we might see some leaving the program but the end state of this transition will be a nice program. They have cash on hand, they have assets that they can dip into as well so the transition can be done right and without them being too greedy or rushed while building it.
The other possibility is being bought out before they get to that finish line... Premiere club is an asset that I imagine AeroMexico would like to get back. Air Canada might not want to see Aeorplan transitioning their long standing loyalty program into a competitor of their new program. Expedia and the likes could decide to buy them as well in order to make the same move.
The last outcome is for Aeroplan to just close and go under... i don't think this will happen considering how much the possible positive outcomes overwhelmes this negative one. Nut it is a possible outcome.
Once we see money coming in from the retail sales we as share holders will see our investments grow considerable.
TL;DR:3 possible outcome: succefull transition to travel agency, being bought out, going bankrupt. 2/3 aint bad.